The Ministry of Health and Welfare is introducing rules that bar pharmacies from using names such as "warehouse-type" or "factory-type" — terms that evoke low-priced, bulk sales of medicines. The ministry argues such labels make drugs look like ordinary consumer goods, encouraging unnecessary purchases and misuse. The amendment to the Pharmaceutical Affairs Act cleared a plenary session of the National Assembly on the 26th of last month and will take effect three months after promulgation following approval by the Cabinet. Pharmacies already using names such as "warehouse-type" must change them within six months of the effective date.
Warehouse-type pharmacies have drawn consumer interest by stocking large stores with a wide range of over-the-counter drugs and health supplements, attaching price tags to each product and selling them below neighborhood pharmacy prices. The Korean Pharmaceutical Association, by contrast, opposed the format, citing drug misuse and the concentration of supply into particular distribution channels.
Medicines are, of course, different from ordinary consumer products. Taken incorrectly, they can directly harm health, and duplicate or excessive use must be prevented. Even so, the argument that the word "warehouse" drives consumers to overuse drugs is hard to accept. Seeking out a pharmacy because prices are low is a separate matter from using medicines excessively.
Consumers go to warehouse-type pharmacies because of price. Looking for the cheapest place selling the same product is a natural choice from a consumer's standpoint. Warehouse-type pharmacies sell over-the-counter drugs for 2,500 won that average 4,000 won at neighborhood pharmacies.
More to the point, removing the "warehouse" sign does not erase a pharmacy's size, its sales format or its price competitiveness. Since low prices are what draw consumers in, a change of signage is unlikely to keep them away.
If the goal is to curb drug misuse, regulation should focus less on what pharmacies call themselves and more on making sure safeguards work in the actual sales and dispensing process. Changing a sign and changing how consumers take medicine are two different things. Erasing three syllables will not solve drug misuse.
