Cheap, convenient — and controversial: Warehouse pharmacies reshape Korea's drug retail market

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Cheap, convenient — and controversial: Warehouse pharmacies reshape Korea's drug retail market

A customer shops with a cart filled with medicine in a warehouse-style pharmacy inside an electronics shopping mall in Yongsan District, central Seoul, on March 1. [CHAE HYE-SEON]

A customer shops with a cart filled with medicine in a warehouse-style pharmacy inside an electronics shopping mall in Yongsan District, central Seoul, on March 1. [CHAE HYE-SEON]

 
Shoppers are lining up for deals, pushing carts through cavernous aisles and stocking up on items to last for months — a common sight at a big-box store, but not something you’d expect when shopping for painkillers or cold medicine. As warehouse-style pharmacies boom across Korea, critics warn that medicine may be turning into just another discount commodity.
 
“I heard about it and came here, and even with this many medicines, it doesn’t even come to 30,000 won [$20],” said a woman in her 40s, unfolding a receipt that stretched well past the length of her hand. “I was shocked.”
 

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On a Sunday morning, she had just stepped away from the checkout counter at a warehouse-style pharmacy inside an electronics shopping mall in Yongsan District, central Seoul.
 
The store, which opened on Jan. 7, has been drawing attention after posts on social media spread touting “anti-inflammatory painkillers for 1,500 won.” Similar products are sold at neighborhood pharmacies for around 3,000 won. Online communities, including parenting forums, have also posted reviews saying other medicines are 20 to 30 percent cheaper than at conventional pharmacies.
 
With it being a public holiday, the roughly 2,600-square-meter (27,986-square-foot) pharmacy was packed with more than 150 shoppers. The corners for common household medicines such as pain relievers, digestive aids and cold medicine were especially crowded.
 
Shoppers repeatedly scanned the shelves and searched prices on their phones. Among visitors pushing carts around as they would at a supermarket, comments could be heard such as, “This really is 1,500 won,” and, “It feels like Daiso [dollar shop chain in Korea], not a pharmacy.”
 
One person had more than 10 boxes of the same anti-inflammatory painkiller in their cart. “It’s medicine we’ll keep taking at home,” they said. “Since it’s cheap, I’m going to share it with my acquaintances.”
 
Cold medicine is stacked on shelves in a warehouse-style pharmacy inside an electronics shopping mall in Yongsan District, central Seoul, on March 1. [CHAE HYE-SEON]

Cold medicine is stacked on shelves in a warehouse-style pharmacy inside an electronics shopping mall in Yongsan District, central Seoul, on March 1. [CHAE HYE-SEON]

 
But with the large space and heavy foot traffic, pharmacists’ medication counseling did not run smoothly. Though this JoongAng Ilbo reporter visited the pharmacy three times and purchased medicine, no separate counseling was provided.
 
Even medicines containing pseudoephedrine, a nasal decongestant ingredient for which most pharmacies limit sales over concerns about misuse, came with little guidance. A pharmacist at the store confirmed that there was no separate purchase limit for customers.
 
Warehouse-style pharmacies first appeared in June 2025 in Seongnam, Gyeonggi, and have since expanded rapidly to around 30 locations nationwide, according to industry sources on Sunday. Drawing customers with low prices through a low-margin, high-volume model, the format spread nationwide in just nine months. Related posts and videos are also easy to find on social media.
 
Under the Pharmaceutical Affairs Act, a pharmacy can be opened only by a pharmacist or a Korean medicine pharmacist, with each license holder only allowed to open and operate one pharmacy. Warehouse-style pharmacies are also run by licensed professionals, though they are larger in scale.  
 
While early locations were set up as standalone shops, newer ones are increasingly opening inside shopping malls and large discount stores.
 
Customers are seen at a pharmacy in Jongno District, central Seoul, on July 12, 2023. [NEWS1]

Customers are seen at a pharmacy in Jongno District, central Seoul, on July 12, 2023. [NEWS1]

 
“Warehouse-style pharmacies are increasingly opening inside large discount stores where crowds gather,” a Korean Pharmaceutical Association official said. “As offline traffic at big-box retailers declines, they tend to welcome pharmacies, but concerns are growing that medicine could be reduced to a merchandising tool.”
 
As warehouse-style pharmacies continue to spread, the Ministry of Health and Welfare is also weighing its next steps, seeking a balance between preventing misuse and improving public access.
 
“We are discussing what approach would be appropriate for medication counseling,” a ministry spokesperson said. “We are hearing various opinions on making counseling mandatory, limiting purchases of certain drugs and restricting sales to minors.” 
 
Six related bills aimed at strengthening oversight of warehouse-style pharmacies have also been introduced at the National Assembly, but they remain pending at the Health and Welfare Committee without substantive deliberation.
 
Experts say the system needs to adapt to changes in the retail environment, where convenience is increasingly prioritized.
 
“Given the diversified platforms and public access, the government needs to draw up new guidelines for the overall management of medicines,” said Lee Beom-jin, a professor at Ajou University’s College of Pharmacy. “That should include whether medicines are being used properly and whether unused drugs are being collected and disposed of appropriately.”
 
“From the consumer perspective, it’s positive that they can access a variety of medicines at lower prices,” said Choi Chul, a professor of consumer economics at Sookmyung Women’s University. “But for neighborhood pharmacies, it inevitably feels like the kind of competition seen between local alleyway businesses and big-box stores, so the direction should be to strengthen pharmacies’ professional role, including more detailed counseling.” 


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY CHAE HYE-SEON [[email protected]]
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