10th year of Boksan-Suzuken partnership…"Establishing a platform for mutual growth"

South Korea-Japan collaborative pharma·wholesaler platform

The 10th anniversary partnership seminar...seeking collaboration directions amid drug price cuts‧market structure reorganization

Boksan Nice Chairman Eom Tae-ung says "An era of selection and concentration...establishing a competitive partner"

Suzuken Director and Chairman Asano says "Moving beyond simple logistics, to establish a platform linking healthcare and the supply chain"

Commemorating the 10th anniversary of their strategic partnership, Boksan Nice and Japan's Suzuken presented the 'redefinition of roles between pharmaceutical companies-wholesalers' and the 'transition to digital distribution platforms' as key strategies to overcome the crisis facing the pharmaceutical industry, which is currently pressured by drug price cuts and market restructuring.

On the 21st, Boksan Nice and Suzuken hosted the 'Boksan Nice-Suzuken Partnership 10th Anniversary Seminar' at the Orchid Room of the Westin Josun Seoul. The event brought together executives from both companies and around 80 stakeholders from the pharmaceutical distribution industry.

The event was organized to reflect on the decade-long partnership between the two companies and to outline specific future collaboration pathways for pharmaceutical companies and the wholesale sector to achieve mutual growth amid ongoing large-scale drug price reductions and structural inefficiencies in distribution in South Korea. The two companies established their relationship in 2016 when Suzuken made a KRW 52 billion investment in Boksan Nice.

In his opening remarks, Boksan Nice Chairman Eom Tae-ung emphasized, "This seminar goes beyond a simple 10th-anniversary celebration; it is a venue to collectively address the rapid changes and future direction facing the pharmaceutical industry and distribution sector today." and added, "As the global weight of marketing and distribution continues to grow, Boksan Nice’s clear direction in this era of selection and concentration is to become a healthy and competitive partner for domestic pharmaceutical companies."

Suzuken Chairman Hiromi Miyata introduced the background behind the long-standing trust between the two companies over the past decade. Chairman Miyata stated, "When we entered the Korean market 10 years ago, we conducted interviews and surveys targeting pharmaceutical companies, healthcare institutions, and pharmacies, and Boksan Nice's reputation and credibility were overwhelmingly high," and added, "This deep trust became the decisive factor for our collaboration. Over the last 10 years, we have built a foundation for growth through continuous joint projects and close talent exchange. We will continue to support the growth of Boksan Nice."

Boksan Nice Chairman Eom Tae-ung (left) and Suzuken Chairman Hiromi Miyata.

Boksan Nice and Suzuken jointly assessed that the pharma-biotech markets and pharmaceutical distribution environments in both Korea and Japan are undergoing profound shifts. In Korea's case, a heightened sense of crisis is escalating due to large-scale drug pricing restructuring.

In response to this crisis, Japan's Suzuken proposed a "digital platform" strategy as an alternative solution. Shigeru Asano, Director and Chairman of Suzuken, shared collaboration case studies from the Japanese market, noting, "Amid changing market environments, wholesalers as well as pharmaceutical companies must move beyond simple logistics fulfillment to deliver new value-added functionalities."

Chairman Asano identified "Visualization, Connection, and Change" as the core strategies of the Suzuken Group, explaining, "We are currently building a digital-based 'healthcare data platform' that organically links data from medical institutions, healthcare professionals, and the supply chain," and added, "Through this, we will perform an advanced role by supporting the digital marketing efforts of pharmaceutical companies while, in turn, providing a stable infrastructure for pharmaceutical supply."

Chairman Eom Seung-wook of Boksan Nice identified fundamental inefficiencies in the domestic pharmaceutical distribution structure and proposed streamlining distribution channels as a solution.

Eom diagnosed, "Currently, there are around 4,000 wholesalers in Korea, and the collective market share of the top 10 companies does not exceed 40%," and added, "Consequently, Korean wholesalers have remained in the role of simple delivery vendors until now, and under the pressure of large-scale drug price cuts, the legacy approach is unsustainable for both pharmaceutical companies and wholesalers."

Eom proposed a structural division of business as a concrete model for collaboration. He emphasized, "Simplifying distribution channels is no longer an option but an absolute necessity. Roles must be redefined so that pharmaceutical companies can focus entirely on their core operations, such as R&D and manufacturing. At the same time, wholesalers solely handle distribution and operational efficiency," and concluded, "Boksan Nice will become a core partner that substantially contributes to improving the profitability of pharmaceutical companies hit by drug price cuts by eliminating unnecessary costs, expanding market accessibility, and simplifying workflows."