Korea to Bar Pharmacies From Using "Warehouse," "Mart" in Names

Health Ministry Pushes Rule Revision Ahead of December Pharmacy Act Changes Terms Such as "Warehouse," "Mart" and "Factory" to Be Restricted as Distorting Pharmacy Role Ads Using "Discount," "Special Price" or "Cheap" Also Banned for Encouraging Overuse

Technology|
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By Park Hong-yongprodigy@sedaily.com
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AI-generated image of a pharmacy. Source: ChatGPT - Seoul Economic Daily Technology News from South Korea
AI-generated image of a pharmacy. Source: ChatGPT

Pharmacies in South Korea will no longer be able to use words such as "warehouse," "mart" or "factory" in their names. Advertisements suggesting that medicines can be bought cheaply, using terms such as "discount," "special price" or "low price," will also be restricted.

The Ministry of Health and Welfare said on the 6th that it is pushing a revision of the enforcement rules of the Pharmaceutical Affairs Act to restrict pharmacy names, labels and advertisements that distort the role of pharmacies, mislead consumers or encourage excessive consumption of medicines.

The revision is intended to spell out the standards for pharmacy names and for restrictions on false or exaggerated advertising, which were delegated to the enforcement rules under the revised Pharmaceutical Affairs Act taking effect on Dec. 23.

The draft divides the restricted expressions into three broad categories: those that distort the role of pharmacies, those that encourage excessive consumption of medicines and those that mislead consumers.

First, the use of terms such as "warehouse," "mart" and "factory" in pharmacy names will be restricted, because they can make pharmacies appear to be ordinary distribution or retail outlets.

Expressions that could spur drug purchases by playing up price competition will also be regulated. The targets are terms such as "discount," "special price" and "low price," which stress that medicines are being sold cheaply and could encourage overconsumption.

Also restricted will be terms such as "largest," "best," "first" and "biggest" when used without objective grounds, as they could mislead consumers about a pharmacy's size or services.

The ministry plans to gather opinions through a public notice of the proposed rules and then carry out follow-up procedures including a regulatory review. It also plans to publicize the new standards through local governments and related agencies so that pharmacies are fully aware of them.

"Pharmacy names, labels and advertisements are more than a simple business tool — they are a means of delivering information about pharmacies and medicines to consumers," said Kwak Soon-heon, director general for health care policy at the ministry. "We will reasonably manage expressions that risk encouraging the misuse and abuse of medicines, and establish a sound culture for pharmacy names, labels and advertising."

Original reporting by Park Hong-yong for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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