Support for official academic conferences begins in July

Standard has been strengthened for 'domestically held international academic conferences'…prior review by professional associations mandated

Overlapping provision of academic conference + booth +food and beverages is prohibited…meal and transportation costs adjusted

Promotional materials limited to pens and notepads valued at KRW 10,000… exposing product names is prohibited

Support for name-only 'international academic conferences' will be blocked. Starting in July, support will only be available for conferences recognized by professional associations, including the Korean Medical Association and the Korean Pharmaceutical Association.

When supporting an academic conference, the overlapping provision of additional food and beverages, booth rentals, and advertisements is prohibited. Promotional materials at booths are limited to pens and notepads valued at KRW 10,000 or less. Exposing product names is prohibited, while exposing company names is permitted.

The Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) recently received approval from the Fair Trade Commission for 'Code of Fair Competition for Pharmaceutical Trade (5th revision).' 

The revised Fair Competition Code focuses on blocking various 'pseudo-academic conferences' that pose as academic meetings and on the practice of indirect support. Evaluations suggest that this revision has clarified the boundaries between academic conferences, product presentations, and exhibitions·advertisements, effectively putting the brakes on support methods that utilize product presentations and satellite symposia during academic conferences.

◆Blocking formality-only international events = The revised Fair Competition Code has established a new definition for 'internationally held academic conferences in Korea.' To use the title of an international academic conference, the event must pass the screening criteria set by medical and pharmaceutical associations. The screening criteria must include: ▲ number of foreign participants ▲ the level of internationalization of the conference program ▲ the number of annual applications, and ▲ the level of substance in the conference program.

Additionally, the event must be held in Korea as an international-scale conference for at least 2 days, with on-site attendance from at least five countries and 50 or more foreign healthcare professionals (excluding those whose attendance is supported by the organizer or invited speakers). Furthermore, budget and settlement details must be submitted to the KPBMA. However, international conferences on rare diseases need only meet either the five-country or the 50-person requirement.

The KPBMA will give prior notice requiring the submission of cost settlement details and other supporting documents within 90 days after the event ends to verify whether the international conference held in Korea was conducted in accordance with the plan. If the conference organizing body refuses, the KPBMA is authorized to suspend the conference support process.

As there have been many cases that seemed international conferences but were in fact closer to domestic academic events, the codification of these standards is interpreted as a mechanism to filter out formality-only or expedient international events.

◆Prohibition of splitting support for academic conferences = Methods for supporting the hosting and operation of academic conferences have also become stricter. When a pharmaceutical company sponsors a conference, it cannot provide overlapping ▲ donations ▲ food and beverages ▲ booth rentals ▲ advertisements related to that conference.

Product presentations held during an academic conference are not recognized as 'separate events.' The new code clarifies that product presentations held during a conference are considered part of the conference and must be supported by Articles 8 and 9, which govern academic conferences.

Accordingly, it has become virtually impossible to separate and provide independent support for satellite symposia or luncheon sessions held during the conference period as product presentations.

This is interpreted as an intent to block overlapping or roundabout support during the conference period. Organizations hosting academic conferences must apply for support to the KPBMA at least 90 days before the event. If there is a potential violation, the KPBMA can demand an explanation or correction, and if not implemented, it can suspend the support process.

◆New standards for booth fees limiting 'maximum KRW 3 million' = New standards regarding the operation of exhibition and advertising booths have been established. Booth fees for academic conferences hosted by academic societies range from KRW 2 million to 3 million per instance. In comparison, conferences hosted by medical institutions are set at KRW 500,000 to KRW 1 million per instance. However, booth fees may be adjusted considering inflation rates, etc., in which case they must undergo prior review by the Fair Trade Commission.

Academic conferences eligible for booth fee payments are limited to events that provide three or more medical·pharmaceutical continuing education credits (minimum 3 hours) and are attended by 50 or more healthcare professionals (25 for rare disease societies).

◆Promotional materials limited to 'pens and notepads' = Standards for promotional materials related to a company's own product presentations have also been strengthened. In principle, no items of value other than food and beverages can be provided. As an exception, only pens and notepads are permitted.

In this case, the combined value of the pen and notepad cannot exceed KRW 10,000, in accordance with Appendix 2 of the Enforcement Rule of the Pharmaceutical Affairs Act. Labeling product names on pens and notepads is prohibited. However, company names may be labeled.

◆Clarifying meal and transportation costs = Standards for meal and transportation costs for conference participants have become clearer. For domestic conferences, support for up to 3 meals per day can be provided, depending on the number of days attended. Receipts for payments made with a personal card or in cash at restaurants within the hosting region must be provided as evidence. The support limit per meal is KRW 50,000, with actual cost reimbursement.

For overseas conferences, meal costs have been fixed by grade and country and city in accordance with the REGULATIONS ON TRAVEL EXPENSES FOR PUBLIC OFFICIALS. They are categorized into Grade A (KRW 100,000 per day), Grade B (KRW 80,000), Grade C (KRW 60,000), and Grade D (KRW 50,000).

Standards for supporting local transportation costs for overseas conferences have also changed. Previously, up to KRW 150,000 could be supported based on actual travel costs, such as airport-to-hotel or accommodation-to-venue. Following the revision, a fixed amount of KRW 100,000 can be supported per academic conference.

The blocking of formality-only international events, the prohibition on split support for conferences, and the new standards for booth fees will take effect on July 1 of this year. The limitation of promotional materials to pens and notepads, as well as the details regarding meal and transportation costs, have been in effect since January 1 of this year.

In addition, this revision reflects new content regarding CSOs and the expenditure report system following revisions to related laws. A new provision requires pharmaceutical companies to prepare and disclose expenditure reports on the details of economic benefits provided to pharmacists, Asian pharmacists, medical professionals, founders of medical institutions, or employees of medical institutions within three months after the end of the fiscal year, and to retain the relevant expenditure reports, ledgers, and supporting data for five years.

The definition of pharmaceutical sales promoters now includes not only pharmaceutical suppliers as defined in the Pharmaceutical Affairs Act (i.e., those who have received pharmaceutical product licenses, importers, or pharmaceutical wholesalers) but also "those entrusted with pharmaceutical sales promotion business and those sub-entrusted by them." It has been specified that CSO companies entrusted with sales representation by pharmaceutical companies or wholesalers can also be subject to the promotion business regulations of the Fair Competition Code.