Inside a large pharmacy in Sujeong District, Seongnam, Gyeonggi Province, on the afternoon of the 25th. Even though it was a weekday midday, about 30 people were each pushing a cart and picking out over-the-counter drugs such as cold medicine and anti-inflammatories, as well as health functional foods (dietary supplements) like vitamins from the shelves. Four pharmacists in white coats were not only at the checkout counters but also circulating inside to provide medication counseling to visitors.
This pharmacy, with an exclusive area of about 430 square meters (130 pyeong), is Korea's first "warehouse-style pharmacy," which opened in June. Unlike existing pharmacies that go through several distribution steps, it supplies products directly from the factory to consumers. Drug prices are cheaper than those at pharmacies near hospitals or in neighborhoods. The store handles about 2,500 items, including over-the-counter drugs that do not require a doctor's prescription, dietary supplements, household goods such as hair dye, and veterinary medicines for pets.
◇ Prices similar to the Jongno 5-ga pharmacy district
A male consumer in his 40s who lives in Pangyo, Seongnam, Gyeonggi Province, said, "I have migraines, and my wife has menstrual pain, so we regularly buy anti-inflammatory painkillers. This place is 1,000–1,500 won cheaper than the pharmacy near our home, so there's no reason not to buy," as he picked up about two bottles and put them in his cart.
Over-the-counter drugs that consumers can buy directly at pharmacies without a prescription can originally have different prices at each pharmacy. Depending on the volume of drugs a pharmacy purchases or its supplier, the purchase cost can vary, and in areas with fewer pharmacies and less competition, prices may be raised to leave larger revenue.
A direct price comparison showed that this store's drug prices were cheaper than those at ordinary neighborhood pharmacies nationwide. They were at a similar level to the prices in the dense cluster of pharmacies around Seoul's Jongno 5-ga, known as the "holy land of pharmacies." Pharmacies in Jongno 5-ga face fierce competition and buy drugs in bulk from wholesalers, making their retail prices relatively low. It is known overseas that drugs at Jongno pharmacies are cheap, so foreign tourists also like to visit.
At the warehouse-style pharmacy in Seongnam, the price of GC Biopharma's anti-inflammatory painkiller "Tachsen Soft Capsules 30" was 5,200 won, "Tachsen Lady 10 capsules" was 2,500 won, and "Tachsen (naproxen) 10 capsules" was being sold for 1,800 won. Comparing Taschen 10 capsules, it was cheaper than neighborhood pharmacies nationwide but 300–500 won more expensive than Boryung Pharmacy, Onyu Pharmacy, and Shinbaekje Pharmacy in Jongno 5-ga.
GC Biopharma's oral and glossitis ointment "Peridex" sells for as low as 4,000 won at ordinary pharmacies in Seoul, but here it is being sold for 2,500 won. A post verifying a receipt showing the same drug bought for 3,000 won at Boryung Pharmacy in Jongno 5-ga has been uploaded online.
Chong Kun Dang's cough, phlegm, and sore throat medicine "Modcough S Soft Capsules" sells for 3,000–4,000 won at pharmacies on the market, but here it is sold for 2,000 won, about 1,000–2,000 won cheaper. Kwangdong Pharmaceutical's "Eyetok (30 vials)," a disposable eye drop known as "artificial tears," sells for as much as 10,000 won at some pharmacies, but here it is being sold for 6,000 won.
Ahead of Chuseok, quite a few people were buying multiple dietary supplements as gifts. Some products were also on Chuseok promotions. However, for dietary supplements, some products were more expensive and others cheaper than prices at Jongno 5-ga pharmacies or online sellers such as Coupang and Naver.
At a pharmacy around Jongno 5-ga, Yuhan Corporation's high-dose multivitamin "Megatrue Gold 200 tablets" sells for 47,000 won, while here it is being sold for 55,000 won. Kyungnam Pharm's "Lemona Max 3000 (100 sticks)" sells here for 35,000 won, but as of the day, some Naver Shopping listings were in the 29,000 won range with coupons applied.
◇ Consumers welcome it, pharmacists push back
Consumers are responding positively to the fact that warehouse-style pharmacy prices are generally cheaper than existing pharmacies and that they can compare and choose various products as if shopping at a supermarket. Online visit reviews are also increasing.
As signs emerge of a nationwide spread of warehouse-style pharmacy openings, pharmacists running neighborhood pharmacies are pushing back. Centered on the Korean Pharmaceutical Association and local pharmacist groups, they are opposing the opening of warehouse-style pharmacies and pointing to concerns about drug misuse and hoarding.
On the 2nd, Korea's second warehouse-style pharmacy opened in Goyang, Gyeonggi Province, and as it became known that an oriental medicine pharmacist was the founder, the Goyang Pharmacists' Association is raising issues. In Gwangju Metropolitan City, ahead of the opening of a warehouse-style pharmacy, the local pharmacists' association even filed a police complaint.
The Gwangju Pharmacists' Association claimed, "The pharmacy received and displayed drugs at a time when it had not completed pharmacy registration, confirming a circumstance that violates Article 47 of the Pharmacist Act." The warehouse-style pharmacy in question recently completed a change of building use and applied for pharmacy registration with Gwangsan District Office in Gwangju on the 22nd.
There are also rumors that a warehouse-style pharmacy will open in the Yongsan electronics market in Seoul, but the truth has not been confirmed. Some in the industry observe that more than 20 locations could open nationwide by the end of the year.
Domestic pharmaceutical companies and major drug distributors quietly welcome the expansion of sales channels and increased contact points with customers, but they are also mindful of established pharmacy owners, who are their key clients. A pharmaceutical company official said, "From our perspective, there's nothing bad about an expanded supply chain that can increase sales, but for pharmacists running pharmacies in nearby areas, it's a threat to their rice bowls."
Pharmacists have previously mounted strong resistance to the sale of essential medicines at convenience stores and to Daiso's sale of dietary supplements. Some pharmaceutical companies withdrew Daiso dietary supplement sales or adjusted the launch timing and product lines, but there are also companies newly entering Daiso.