Gwangdong Pharmaceutical Sales Suspension... Marts and Convenience Stores "No Supply Disruption"
Distribution and sales banned until the 25th
but sufficient stock of Vita500, Heotgaecha, and more available
The supply and demand of products from Kwangdong Pharmaceutical, which was caught by administrative authorities for advertising without prior review and received a business suspension order, is expected to proceed without disruption, contrary to initial concerns.
On the 22nd, beverages are displayed at a convenience store in downtown Seoul. Products such as Vitagen 500 and Hovenia dulcis tea from Kwangdong Pharmaceutical, which received a business suspension order from the authorities from the 21st to the 25th, are expected to have no supply disruptions as initially feared, due to sufficient stock at major supermarkets and convenience stores. Photo by Seongpil Jo @gatozz
View original imageAccording to the distribution industry on the 22nd, orders for all products sold by Kwangdong Pharmaceutical are mostly being placed normally at offline stores including the three major discount stores (Lotte Mart, E-Mart, Homeplus) and four convenience store chains (CU, GS25, 7-Eleven, E-Mart24). It is known that the quantity delivered from Kwangdong Pharmaceutical before the business suspension was sufficient, so there is no difficulty in supply even if each store places orders.
The products banned from sale due to Kwangdong Pharmaceutical's business suspension include Vita 500, Hovenia dulcis tea, and Corn silk tea. In particular, considering that Vita 500 gift sets are sold a lot as gifts ahead of Chuseok, it was expected that supply would face difficulties. However, each mart and convenience store reportedly received twice the usual amount of gift sets in consideration of the holiday peak season. An industry insider said, "Coincidentally, before the holidays, a large quantity of all products, not just Kwangdong Pharmaceutical's, is secured," adding, "At present, there is no direct impact on stores (due to Kwangdong Pharmaceutical's business suspension)."
Earlier, Kwangdong Pharmaceutical was caught by the Ministry of Food and Drug Safety for advertising unreviewed functional claims on a red ginseng beverage it was selling, resulting in a business suspension order. The suspension period is from the 21st to the 25th, during which all products registered by Kwangdong Pharmaceutical as 'distribution specialized sellers' are prohibited from distribution and sale both online and offline. Kwangdong Pharmaceutical has accepted the suspension and is currently not delivering products to marts or convenience stores.
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However, it is known that some stores, including E-Mart, have also stopped placing orders from Kwangdong Pharmaceutical. Accordingly, some E-Mart stores are expected to remain sold out without additional supply until the 25th once the currently displayed products are sold out. An E-Mart official said, "We are selling the stock normally," and added, "Since Kwangdong Pharmaceutical's business suspension is related more to advertising violations than quality issues, normal delivery and ordering are expected to resume after the suspension period."
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