A study on the distribution structure of Korean medical goods.

Chai Myung Chul(Major in Marketing Graduate School of Business Administration Chonnam National University)

The purpose of this study is to investigate and propose remedy for the problems in the distribution structure of medical goods in Korea.

Because health and medical goods play very important role in human lives, they should contribute to develop the whole social welfare.

In our country medicine distribution is operated by medicine distributers producers, wholesellers, retailers and broker.

Retailers are drug-stores but brokers are illegal institutions.

And producton, distribution, selling, prescription and advertising of the medical goods should be regulated by the pharmaceutical affairs law.

Korean medicine distribution channels is very complex and extremely diversified. Analyzing this Korean Medicine distribution structure, some problems are identified.

PROBLEMS:

1) the complexity of distribution channel and large distribution cost.

2) Korean medicine producers functional problems are overproduction, sales promotion, strong competitions among the similar products, various discounts, special sale and the weakness of financial structure.

3) Problems in functions of wholesellers and Retailers lie in weak functional diversification, extreme density of drug-stores and capital weakness.

4) Problems of the law and systems lie in double pricing and strong legal regulations.

5) Limitation of market.

IMPROVEMENT:

1) Rationalization for the policy on distribution channel based of the generic function of wholesales and retails.

2) prevention of fierce competition though desirable quality and quantity control.

3) Developing and strengthening the function of wholesale through merging of small firms in pharmaceutics or organizing a union among the wholes-alers.

4) The improvement of the laws and systems for distribution efficiency.

① Complementing the system for a retail price.

② Separation of dispensary from medical practice.