Pharmacies in South Korea will no longer be allowed to use terms that evoke a “warehouse” or “factory” on their storefront signs.
The Ministry of Health and Welfare announced Friday that the National Assembly approved an amendment to the Pharmaceutical Affairs Act during the plenary session of its 438th extraordinary session. The updated law prohibits pharmacy operators from using names or signage that could encourage the excessive consumption and misuse of medicines—a direct response to the recent proliferation of so-called “warehouse-style pharmacies.”
Over the past year, large-scale pharmacies featuring spacious bulk displays have opened across the country, allowing consumers to compare prices and buy in bulk. By emphasizing discount pricing, these outlets sought to differentiate themselves from traditional neighborhood pharmacies. However, health officials warned that framing pharmaceuticals as ordinary commercial goods prompts consumers to prioritize price over a pharmacist’s professional guidance.
The amendment specifically regulates names and signage rather than the underlying retail business model. Under Article 24, Paragraph 1, Item 5 of the amended law, five types of wording are prohibited. Four were elevated from existing enforcement regulations into primary law: terms suggesting a pharmacy is a wholesaler's office; terms claiming specialization in specific drugs or diseases; terms causing confusion with medical institutions; and terms sharing a name with a medical facility within a 1-kilometer radius. The amendment introduces a fifth category: terms that distort a pharmacy's healthcare role, mislead consumers, or encourage drug overconsumption and misuse. Large retail spaces and bulk product displays remain fully permitted.
Pharmacists Lead Push for Regulation
Pharmacists' organizations were the most vocal advocates for the legislative change. During a parliamentary audit last October, Korean Pharmaceutical Association President Kwon Young-hee called for a ban on terms such as “warehouse-style,” “factory-style,” “mart-style,” and “discount.” Emphasizing that medicines are “essential public health goods, not mere consumer products,” Kwon maintained that medication counseling and health consultations must always accompany sales.
In addition to “warehouse-style” and “factory-style,” forthcoming subordinate regulations are expected to explicitly restrict promotional terms such as “mart-style,” “holy grail,” “special price,” and “discount.” Exclusive marketing claims such as “largest,” “best,” “first,” and “biggest” are also set to face strict restrictions.
Public Perception and Enforcement Timeline
Public opinion remains divided between affordability and safety. A national survey of 1,000 adults aged 19 to 69 by market research firm Embrain Trend Monitor found that 87.6% were aware of warehouse-style pharmacies, with 58.9% viewing them favorably—primarily citing reasonable prices (71.5%), broader selection (54.8%), and product comparison (52.0%). Conversely, negative views stemmed from fears of drug misuse (65.4%), the commercialization of medicines (44.2%), and insufficient instructions regarding side effects (42.3%). Notably, 80% of respondents expressed willingness to use such pharmacies if safety measures were established.
A separate survey of 1,000 recent visitors by Pharmacists Preparing for the Future (Yakjunmo) highlighted practical risks: 45.3% reported making unplanned purchases, 62.2% accumulated unused medicines at home, 49.0% bought duplicate products with similar effects, and 26.3% failed to check for potential drug interactions. Furthermore, 64.4% had to contact neighborhood pharmacies afterward to ask how to take their purchased medications. Consequently, more respondents felt these outlets failed to reduce household spending (39.4%) than those who felt they helped (29.8%).
The amended law will take effect three months after official promulgation following Cabinet approval. Municipal and regional authorities will issue guidance to help new pharmacies comply with the rules, while existing pharmacies using prohibited terms will receive a six-month grace period.
“This revision establishes essential safeguards against social problems and public health risks associated with warehouse-style pharmacies,” said Health and Welfare Minister Jeong Eun-kyeong. “We will continue working to cultivate a sound sales environment where medicine purchases are not unduly influenced by commercial factors.”
Attention now turns to two key questions: which specific terms will be restricted in the forthcoming subordinate regulations, and whether practical safeguards—such as enhanced medication counseling—will also be strengthened once the naming rules take effect.
As consumer surveys indicate, the public is seeking pharmacies that deliver both affordability and safety, rather than low prices alone. Whether these naming restrictions prove to be a meaningful first step will ultimately depend on the precision of the subordinate regulations and the enforcement of practical follow-up measures in the field.
