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Antitrust watchdog eyes sanctions on pharma lobby after vitamins withdrawn from Daiso shelves

Published: 30 Jul. 2025, 17:33

The health supplement section at a Daiso store in Korea [JOONGANG ILBO]

Korea’s top pharmaceutical lobby is under fire for allegedly strong-arming the removal of health supplements from Daiso shelves, with the country’s antitrust watchdog eyeing sanctions.

The Fair Trade Commission (FTC) conducted an investigation into the Korean Pharmaceutical Association (KPA) over allegations that it unfairly disrupted the sales of health supplements at Daiso, a popular household goods retailer.

The FTC recently sent a review report to the KPA outlining suspected violations of the Monopoly Regulation and Fair Trade Act, according to industry sources on Wednesday. The report follows an on-site investigation conducted in March and marks the beginning of formal legal proceedings.

Several major pharmaceutical companies — including Il-yang Pharmaceutical, Daewoong Pharmaceutical and Chong Kun Dang Healthcare — had launched exclusive lines of health supplements to be sold in Daiso but later withdrew them from the market.

These products were sold at competitive prices, ranging from 3,000 to 5,000 won ($2.17 to $3.61) for a month’s supply, significantly lower than the 20,000 to 30,000 won typically charged at pharmacies.

The KPA responded by issuing a public statement urging corrective measures regarding the lower-priced products, claiming that it was unfair for major pharmaceutical companies to leverage the trust built through pharmacy distribution channels to sell similar products at much lower prices through general retail outlets. Some pharmacists even called for a boycott of the pharmaceutical companies involved.

The FTC is investigating whether the KPA's actions, including any organized boycotts or attempts to restrict sales, constitute unfair interference in business operations or prohibited collective conduct under the fair trade law.

The law explicitly bans businesses from using their market position to disrupt competitors’ transactions and forbids trade associations from unfairly restricting members’ business activities.

“If violations are confirmed, we will impose strict sanctions,” said an FTC official.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG JAE-HONG [[email protected]]