South Korea Moves to Bar Telemedicine Platforms From Drug Distribution (Yonhap)
SEOUL, Jan. 28 (Korea Bizwire) — South Korea’s National Assembly is moving closer to passing a revision of the Pharmaceutical Affairs Act that would bar telemedicine platforms from operating as drug wholesalers, a measure that has emerged as one of the most contested health policy debates of the new year.
Lawmakers and health authorities are pressing ahead despite strong opposition from platform companies and some government ministries, which argue the bill would stifle innovation and trigger a repeat of the so-called “Tada incident,” referring to earlier regulatory clashes that derailed ride-hailing services.
Supporters of the legislation, however, describe it as a necessary safeguard — a “second Coupang prevention law” — aimed at curbing excessive market power by large digital platforms.
According to political officials, Han Jeong-ae, a senior lawmaker from the ruling Democratic Party and head of its policy committee, has recently urged swift passage of the bill, warning that the remote medical market must not fall under the control of a handful of dominant platforms.
At the heart of the amendment is a clear prohibition on telemedicine platforms engaging in pharmaceutical wholesale distribution. Lawmakers say allowing platforms to both broker medical services and distribute drugs would create serious conflicts of interest, potentially steering prescriptions toward preferred pharmacies or high-margin medications.
Health-care professionals have largely backed the move, arguing that claims of innovation mask efforts to entrench monopolistic control over medical distribution — a sector closely tied to public trust and patient safety.
Platform companies and the Ministry of SMEs and Startups have countered that heavy-handed regulation risks smothering emerging industries and should be addressed through ex-post oversight rather than outright bans.
In response, the Ministry of Health and Welfare has proposed an alternative model intended to preserve innovation without allowing platforms to sell medicines directly.
Under the plan, telemedicine platforms would be linked to the national Drug Utilization Review system, enabling real-time access to pharmacy inventory data nationwide. Platforms could then guide patients to nearby pharmacies with available medications, acting as information intermediaries rather than commercial distributors.
Health policy experts say the legislation represents a critical moment for South Korea’s medical system, arguing that unchecked platform dominance could undermine the public nature of health care. They contend that remote treatment can succeed only if digital companies accept public-interest limits and the government establishes fair compensation for technology-driven services.
With strong backing from the ruling party and a clearer regulatory framework now taking shape, prospects have risen sharply for the bill to pass the Assembly in the first half of 2026 — a move supporters believe could redefine telemedicine platforms not as market gatekeepers, but as trusted links between patients, pharmacies and doctors.
M. H. Lee (mhlee@koreabizwire.com)
