Korean distributors accuse foreign companies of unfair practices
Distributors call for the government to step in and take control of the situation
In Korea, foreign pharmaceutical companies have been criticised by that country’s distributors for alleged unfair business practices. Since 2011, some 60 drug distributors have gone bankrupt because of what many claim are foreign drug manufacturers not passing on their fair share of the profits.
The allegations were levelled by the Korea Pharmaceutical Distribution Association (KPDA) which represents 2,121 distributors. It now wants the government to step in and take control of the situation.
Foreign pharma companies make six of the top 10 prescription drugs in Korea. While Korean pharmaceutical companies guarantee at least a 10% profit margin for distributors, foreign drug makers set it at 7% or lower.