South Korea’s Top Court Expands Pharmacists’ Rights to Challenge Rival Pharmacies (Yonhap)
SEOUL, Sept. 11 (Korea Bizwire) — In a precedent-setting ruling, South Korea’s Supreme Court said Thursday that pharmacists may seek the cancellation of a rival pharmacy’s license if it opens directly next to a medical clinic in violation of pharmacy law.
The decision overturned a lower court’s dismissal of a lawsuit brought by pharmacists in Seoul’s Yeouido district, who argued that a newly opened pharmacy, located in the unit adjacent to a women’s clinic, had been improperly registered.
They contended the registration violated a clause in the Pharmaceutical Affairs Act barring pharmacies from opening within or immediately adjacent to medical facilities, a safeguard meant to prevent collusion between doctors and pharmacists.
Lower courts had been divided. A district court sided with the plaintiffs, ruling that the neighboring pharmacy’s presence likely diverted prescriptions and sales away from established businesses.
But an appeals court dismissed the case, finding the plaintiffs lacked standing since their pharmacies were in separate buildings and not wholly dependent on prescriptions from the clinic in question.
The Supreme Court disagreed. “Existing pharmacy operators who lose all or part of their prescription opportunities due to a new license have a legal interest in challenging that decision,” the justices wrote.
The court emphasized that the law aims not only to deter monopolistic arrangements between clinics and pharmacies but also to protect the economic foundation of independent pharmacists.
Legal experts said the ruling is significant because it explicitly recognizes third-party standing for nearby pharmacists in licensing disputes — a move likely to embolden future challenges when new pharmacies open in close proximity to medical providers.
Ashley Song (ashley@koreabizwire.com)
