The main purpose of this paper is to propose an alternative system of the distribution of OTC drugs in Korea. We first investigate the characteristics and the regulations on the distribution of the Korean medicine market and compare it with some foreign countries. We also examine the buying behavior of Korean customers. We propose three different alternatives. A passive policy is to expand the range of OTC drugs. Another one would be to amend the relevant laws. An active alternative is to arrange a separate organization to control the distribution of OTC drugs. The time and the execution of the proposed policies could vary.