After President Lee Jae-myung's remarks about "expensive sanitary pads," domestic sanitary pad manufacturers, without exception, unveiled plans to expand mid- to low-priced product lines and roll out new products. But some note that the core of the issue Lee pointed out was the "distribution structure," not the "production cost," raising doubts about whether the industry's response can fundamentally reduce price burdens.
According to related industries on the 29th, three major domestic sanitary pad manufacturers—Yuhan-Kimberly, LG Unicharm, and KleanNara—recently signaled plans to expand mid- to low-priced lines and to launch new products. These corporations account for more than 80% of the domestic sanitary pad market share.
Yuhan-Kimberly will expand offline distribution for mid- to low-priced products that had been sold mainly online, and in the second quarter of this year plans to launch a new "Super Long Overnight" product with a supply price lowered to about half that of premium products. LG Unicharm will launch a new product in March at about half the price of its existing premium products, and KleanNara is reviewing an expansion of mid- to low-priced sanitary pad products while preparing to introduce a line within the first half that eases the price burden.
This appears to be the industry's "mid- to low-priced" card following Lee's remarks at a Cabinet meeting on the 20th that "products in Korea are nearly 40% more expensive than sanitary pads overseas." According to the Women's Environmental Network's released "2023 Disposable Sanitary Pad Prices and Advertising Monitoring" report, the average price per sanitary pad in Korea was found to be 196.56 won (39.55%) higher than overseas products.
The sanitary pad industry has cited a strict regulatory environment as the reason domestic prices are higher than overseas. Sanitary pads are classified not as general consumer goods but as "quasi-drugs" regulated by the Ministery of Food and Drug Safety. Because fixed expenses are high for production facility filings, item-by-item approvals, and regular harmful substance tests, these costs inevitably get reflected in product prices. In addition, after the "sanitary pad scare" in 2017, preferences spread for high-spec products such as organic and unbleached, cementing a premium-focused product strategy.
But Lee's framing of the problem is different. After hearing of recent mid- to low-priced launches, Lee again raised the sanitary pad pricing issue at the Cabinet meeting on the 27th, saying, "It's not a production cost issue—distribution expenses are too high. Looking at the briefing materials, I was surprised to see distribution costs account for as much as 50% of the sanitary pad price." Lee then indicated the need to expand distribution-structure reform—previously discussed mainly for agricultural and fishery products—across essential consumer goods industries such as sanitary pads.
It is clear that the industry's expansion of mid- to low-priced products is an "immediate signal" in response to Lee's raising of the "expensive sanitary pads" issue. But observers say the direction of the solution is somewhat misaligned. Because mid- to low-priced products still move through the same large supermarkets, convenience stores, and online channels, the distribution expense structure—such as listing fees, promotional costs, and delivery charges—remains unchanged. Unless the distribution expense structure changes, the effect on lowering consumer prices for sanitary pads will be limited, and intensified promotion competition for low-priced products could even increase distribution cost burdens.
The government also appears focused more on price formation and distribution structures than on production methods. Last month, the Korea Fair Trade Commission began looking into potential price collusion and the overall distribution structure among major sanitary pad manufacturers. On the 28th, the National Tax Service launched tax audits of 17 hygiene product manufacturers. Those surveyed reportedly include top market-share firms suspected of price collusion or corporations that raised prices citing "product premiumization."
The industry, feeling the rising pressure, also agrees that a distribution-structure approach is needed. A distribution industry official said, "We agree that menstrual rights, which everyone should enjoy, including economically vulnerable groups, are important. Our quick move to expand mid- to low-priced products is in that same vein," while adding, "Unless discussions on the distribution structure begin in earnest, the same problem will only repeat."
Lee Eun-hee, a professor of consumer studies at Inha University, said, "If the thrust of the president's remarks is improving the distribution structure, simply increasing mid- to low-priced products will not easily solve the problem," adding, "The priority is to review the entire price formation process—such as whether sanitary pads, classified as quasi-drugs, carry excessive margins at the distribution stage."