[Exclusive] Mask Prices Skyrocket... Government Crackdown Results at Zero Cases

Joint Inspection Team Records Zero Cases in Four Days... Police Helpless Amid Hoarding Surge

[Image source=Yonhap News]

[Asia Economy Reporters Jang Sehee and Lee Gwanju] Despite the government’s joint crackdown in response to the shortage and soaring prices of masks caused by the recent spread of the novel coronavirus infection (Wuhan pneumonia), it has been revealed that there were zero cases detected over four days. The government also plans to enact a public notice on the 6th to prohibit hoarding, but it remains uncertain how much this will curb mask stockpiling.

According to related government departments such as the Ministry of Food and Drug Safety, the Fair Trade Commission, and the National Tax Service on the 4th, the joint inspection team checked 90 locations from the 31st of last month until the day before, but did not detect any mask hoarding or stockpiling activities. Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki announced the day before that "a joint inspection team of 120 members is already operating to punish unscrupulous businesses that sharply raise prices or unilaterally cancel transactions," but this has amounted to little more than a threat.

The joint inspection team is composed of 30 groups (4 members per group), with each group visiting one location per day. They are conducting crackdowns divided into six regions: Seoul, Gyeonggi-Incheon, Busan, Gwangju, Daegu, and Daejeon. A government official said, "As of the 3rd, there have been no detected cases," adding, "Since we visit one place per day to check market conditions and listen to difficulties, time is limited."

Since there have been no complaints filed by the competent authorities, the police have no means to intervene in mask hoarding. A police agency official stated regarding stockpiling, "A complaint from the competent authority is required to file a prosecution," and added, "If a complaint is received, we will actively investigate." They also explained that there have been no actual complaints or ongoing investigations so far.

Despite government crackdowns, mask prices continue to rise endlessly. According to government departments, mask prices have increased about tenfold since the outbreak of the novel coronavirus. There are also frequent cases where orders are outright canceled due to mask shortages. The Ministry of Strategy and Finance views the supply shortage caused by explosive demand growth as the cause and analyzes that hoarding by distribution companies is prominent.

The government is currently coordinating items and periods to enact a public notice prohibiting stockpiling around the 6th. According to the Act on Price Stabilization and related enforcement decrees, the Minister of Strategy and Finance may designate specific business sectors and issue a public notice prohibiting stockpiling if there is a concern about disrupting price stability. Those caught stockpiling may face imprisonment of up to two years or fines of up to 50 million won. The government has previously issued public notices prohibiting stockpiling for petroleum products (fuel tax reduction), empty bottles (increase in deposit fees), and electronic cigarettes (price increase).

Professor Jeon Sam-hyun of Soongsil University’s Department of Law said, "When prohibiting stockpiling related to the novel coronavirus, it is necessary to minimize the items to virus prevention masks and hand sanitizers, and apply the period temporarily for up to about three months."

Until the 1970s to 1990s, investigations into stockpiling warnings were actively conducted. During the 1998 IMF crisis, hoarding of daily necessities continued, and there were cases where the police filed charges. However, as the national economy stabilized afterward, stockpiling naturally disappeared. In fact, since 2011, crimes violating the Price Stabilization Act have not even been recorded in police crime statistics, and special police crackdowns on "price-disturbing offenders" conducted around holiday seasons have not been carried out since 2011.

However, with the mask crisis caused by the current novel coronavirus situation, the possibility of punishment cases for stockpiling has increased. It is already known that some local governments, including Gyeonggi Province, are considering criminally prosecuting mask stockpiling. The police also plan to start investigations centered on local police agencies if complaints are filed.

This content was produced with the assistance of AI translation services.