“130,000 won for 200 pills for erectile dysfunction”… I thought it was a windfall, but it turned out to be a direct scam.

In November last year, Mr. A (34) ordered 200 tablets of the erectile dysfunction drug Vidalista (a generic version of Cialis) for 130,000 won from an overseas direct purchase site. This is because the price is less than one-fifth of what it would be if you buy it with a doctor's prescription in Korea. But the medicine did not arrive even after two months. When I inquired with the company, the only response they gave me was “Delivery will begin soon.” Mr. A, who felt suspicious, inquired, and within 10 days, more than 100 people who had suffered the same damage gathered. Mr. A said, “I have been buying medicine directly from overseas for 8 years,” and “I chose the company because it had a high discount rate, but I got scammed.” Person A plans to file a complaint with the police against the other victims and the company.

Recently, the number of victims of the so-called ‘overseas direct purchase scam’, like Mr. A, who buys medicine through overseas direct purchase but does not receive the product, is increasing.

This is because in recent years, the number of online sites that sell hair loss treatments, sexual function enhancement drugs, etc. directly from overseas has mushroomed. The number of sites suspected of overseas direct purchase fraud registered on the International Trade Consumer Portal increased significantly from 249 in 2020 to 325 last year. Last year, as a result of a crackdown by the Ministry of Food and Drug Safety, there were 18,331 posts about selling and distributing medicines online.

In fact, as a result of searching for medicine purchase on Google on the 30th, I was able to access the direct purchase site right away. Many of the companies were encouraging people to join the site and purchase by increasing the discount rate the more medicines were purchased or providing points to both parties when a new subscriber writes down a referral.

The problem is that bringing medicines into the country without obtaining an import permit from the Ministry of Food and Drug Safety is itself a crime that violates the Pharmaceutical Affairs Act. In addition, hair loss and erectile dysfunction treatments, which are mainly sold by illegal direct purchase sites, are specialty drugs in Korea and cannot be sold without a doctor's prescription.

Even if you fall victim to a direct purchase of pharmaceuticals, it is not easy to get relief. This is because scam sites are mainly based overseas. Illegal sales of pharmaceuticals are punishable by imprisonment for up to 5 years and a fine of up to 50 million won, but in reality, investigation is not easy. A police official said, “If the direct purchase company’s IP is located overseas, it will inevitably take a long time because we have to seek international cooperation for the investigation.” In addition, in the case of prescription drugs containing ingredients such as steroids, ephedrine, and etomidate, the purchaser may also be subject to a fine of up to 1 million won (Pharmaceutical Affairs Act, Article 98).

The recent increase in the number of companies directly purchasing overseas pharmaceuticals is due to the rapid increase in domestic demand. They visit direct purchase sites to obtain unlicensed medicines that are not available in Korea or to purchase them in bulk at low prices even if they are sold domestically. In 2022, Incheon Headquarters Customs caught six people who smuggled in and sold about 57,000 abortion pills from China that were not approved in Korea.

Some drugs used to treat ischemic cerebral infarction, cognitive impairment in the elderly, narcolepsy, etc. are also misused as ‘smart drugs’ (drugs that improve your brain). Mr. C, who has experience purchasing the drug directly from overseas, said, “This medicine cannot be prescribed unless you are a patient diagnosed with dementia, so I had no choice.”

Hair loss medicines and sexual function improvement medicines are constantly purchased overseas for the purpose of reducing costs. In fact, one hair loss medicine costs 16,500 won for 10 tablets when purchased at a pharmacy, but when purchased directly from overseas, it can be purchased for 2,600 won. Mr. Lee (36), who bought the hair loss medication directly from overseas, said, “To get a prescription, there is a long wait at the hospital and the price is high, so I buy it even at the risk of side effects.”

The methods used by overseas direct purchasers to avoid the eyes of customs authorities are becoming increasingly sophisticated. They do so-called ‘can change’ by changing the packaging container, or they intentionally omit customs-banned ingredients such as steroids, ephedrine, and etomidate from the product name. Products under US$150 (approximately 200,000 won) are sometimes reported at a lower price than the actual price, taking advantage of the fact that import declaration is not required.

Some point out that in order to prevent illegal overseas direct purchase of pharmaceuticals, punishments for buyers should be strengthened. This is because the punishment is lighter than that of sellers, and the drug ingredients that can be punished are limited. Attorney Choi Hyeon-deok of Daeryun Law Firm said, “The Pharmaceutical Affairs Act must be fundamentally revised to strengthen the punishment of buyers.”

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