Medihelpline has filed a subcontracting dispute request with the Korea Fair Trade Mediation Agency (KFTMA) against MSD Korea, claiming non-payment of approximately $1.08 million.

According to documents obtained exclusively by Hit News, the company submitted its request on August 18, citing unpaid subcontracting fees tied to multiple post-marketing surveillance (PMS) projects. Medihelpline stated:

“MSD Korea, a global pharmaceutical firm with annual sales of up to $431 million, entrusted us with numerous PMS projects. However, unilateral refusals to pay and demands for unjust fee reductions have eroded trust, leaving us no choice but to seek mediation.”

The company says it signed seven PMS contracts with MSD Korea, including the “Keytruda EC” project, most of which were completed and approved by regulators. Despite this, it alleges MSD withheld $625,000 from a tax invoice issued in August 2024, with no payment for more than a year. Medihelpline claims the firm has now been denied payment for over 18 months.

MSD Korea disputes this account. In a statement to Hit News, the company said Medihelpline admitted to invoice errors and inadequate documentation. MSD added it has pursued fair settlement efforts, paying confirmed project costs on January 15, 2025.

The disagreement escalated as payment negotiations broke down. Medihelpline claims it reduced its demand to $720,000 in line with MSD’s position, but the proposal was rejected. Instead, MSD allegedly offered $4,235 in April 2025, $431,000 in June, and later reversed its position in July, demanding a refund of $122,000. Medihelpline denounced these actions as “a war of attrition designed to pressure us into unfair concessions.”

MSD countered that payments must be based on actual patient enrollment and argued Medihelpline failed to provide adequate documentation or cooperate in settlement discussions. The company maintains no additional amounts are owed and said litigation may be necessary to resolve the dispute.

The case also raises potential violations of Korea’s subcontracting law. Medihelpline alleges breaches of Article 11 (prohibition of unjust fee reductions) and Article 13 (requirement to pay within 60 days), arguing that MSD’s reduction of fees due to “project scale” is explicitly unlawful. MSD insists settlements must follow patient data records, not contractual projections.

Legal experts note the central issue will be whether MSD Korea abused its dominant position by delaying payments, or whether Medihelpline’s lack of cooperation was the root cause. If mediation fails within 60 days of filing, the case will be automatically closed.