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FTC probes pharmacy lobby's office over potential Daiso supply meddling

Published: 13 Mar. 2025, 16:56

KIM JU-YEON
[email protected]

The Fair Trade Commission launched an on-site investigation into the Korean Pharmaceutical Association's (KPA) alleged involvement in Il-Yang Pharmaceutical halting its supply to Daiso. Pictured is the KPA's office in Seocho District, southern Seoul, on March 13. [NEWS1]

The Fair Trade Commission (FTC) launched an on-site investigation into the Korean Pharmaceutical Association (KPA) on allegations that the agency unfairly pressured drug manufacturers to stop supplying Daiso, which offered their products at cheaper prices.

The FTC sent investigators to the KPA for an on-site inspection on Thursday, Yonhap reported the same day. The FTC will be looking to see if the KPA was involved in Il-Yang Pharmaceutical's suspension of its supply to the dollar shop chain and whether the collective had potentially violated the fair trade law in the process.

Daiso sold Il-Yang’s products from Feb. 24, only to pull the goods five days later. Pharmacists protested the manufacturer, along with the chain's other suppliers Daewoong Pharmaceutical and Chong Kun Dang Pharmaceutical, for selling their goods to Daiso more cheaply than to accredited pharmacies.

KPA President Kwon Young-hee met with the three pharmaceuticals two days after Daiso started selling goods from Il-Yang and Daewoong. Il-Yang’s withdrawal came soon after her visit.

If the KPA forced the company to stop supplying Daiso, the FTC could charge the organization for interfering with business or participating in joint action unjustly, which trade associations are banned from.

An FTC spokesperson declined to confirm or comment on the matter.

BY KIM JU-YEON [[email protected]]