'No Domestic Supply Disruption Amid "Zhong" Cold Medicine Shortage... Pharmaceutical Companies Operating at Full Capacity'

Pharmacies Around Myeongdong
Bulk Purchases by Botaerisang Still
Act as a Boon for the Pharmaceutical Industry

Comprehensive cold medicine, antipyretic analgesics, and COVID-19 self-test kits available on the market. / Photo by Lee Gwanju

[Asia Economy Reporters Lee Gwan-ju, Lee Chun-hee, Lee Myung-hwan] Amid the crisis of cold medicine shortages in China, which has put the supply of raw materials for domestic fever reducers and painkillers on alert, there have been no significant disruptions in the distribution of these medicines in the market yet. Along with the government's swift measures such as emergency production and import orders, the pharmaceutical industry is also responding by running production lines at full capacity.

On the afternoon of the 26th, a survey of about 10 pharmacies in the Myeongdong and Yeongdeungpo areas of Seoul found that comprehensive cold medicines and fever reducers were easily available. Although concerns were raised about bulk purchases by peddlers following China's lifting of COVID-19 restrictions, frontline pharmacists unanimously stated that there were no major supply issues. A pharmacy official in Myeongdong said, "So far, no one is buying cold medicine in bulk, and there is enough medicine available," adding, "The impact of China's COVID-19 is almost none. Chinese tourists have not yet returned." Another pharmacy said, "Some international students are buying a little cold medicine as they return home, and pharmaceutical companies are supplying cold medicine normally," and added, "We stocked up on cold medicine due to news of a COVID-19 surge in China, but customers are not coming."

In fact, the number of Chinese entering the country remains very low compared to before the COVID-19 pandemic. According to the Ministry of Justice's Immigration and Foreign Policy Headquarters, 21,669 Chinese entered Korea last month, a 95% decrease compared to 451,186 in November 2019, before the pandemic. Although there have been cases of bulk purchases of cold medicine by Chinese peddlers (taigong) in countries like Japan, it seems unlikely to happen easily in Korea. The Ministry of Health and Welfare stated, "We will inform related organizations that pharmacies selling excessive amounts of medicine to individual patients may cause concerns about medicine supply and misuse, and that legal responsibilities may arise, urging caution."

On the 13th (local time), a citizen in Beijing, China, is seen leaving a pharmacy holding a bag containing medicine with both hands. [Image source=AP Yonhap News]

The pharmaceutical industry is also strengthening the operation of cold medicine production lines and responding to supply issues. A representative from a mid-sized pharmaceutical company said, "Regardless of seasonal factors, there have been ongoing cold medicine issues this year, so we are producing at maximum capacity," and explained, "Earlier this year, cold medicine was even out of stock at pharmacies, but now sales have increased compared to usual, and the situation does not seem to be a major problem immediately."

The domestic supply volume of acetaminophen, a representative fever reducer and painkiller ingredient heavily dependent on imports from China, was recorded as 31.7 million tablets in the first week of this month, 22.01 million tablets in the second week, and 17.79 million tablets in the third week, exceeding the government’s target level of 16.61 million tablets.

In the pharmaceutical industry, the crisis originating from China appears to be acting as a positive factor. The stock prices of some related pharmaceutical companies have surged, and strong performance is expected. A representative pharmaceutical company is Hanmi Pharmaceutical. Last year, Hanmi Pharmaceutical secured production capacity by expanding the syrup production line at Beijing Hanmi Pharmaceutical. Lee Ji-soo, a researcher at Daol Investment & Securities, noted, "Since China’s transition to 'With Corona' this month, the continued resurgence of COVID-19 and the surge in demand for cold medicine are expected to drive sales growth of Beijing Hanmi’s cough and phlegm medicines ‘Itanjing’ and ‘Ianping.’"

This content was produced with the assistance of AI translation services.