Prosecutors Take Strong Action Against Mask Fraud and Hoarding

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] President Moon Jae-in apologized to the public for the first time regarding the 'mask crisis' caused by the spread of the novel coronavirus infection (COVID-19) and reprimanded government ministers. Immediately after, the prosecution also drew its sword. The atmosphere is set for a full-scale crackdown on 'mask economic offenders.'

The Seoul Central District Prosecutors' Office formed a 'Special Investigation Team for Disruption of Distribution of Masks and Other Health Products' on the 3rd and began investigating related cases from that day. The team includes eight prosecutors from the Anti-Corruption Investigation Division, Fair Trade Investigation Division, and Tax Crime Division. All are prosecutors specialized in intensive direct investigations, raising the possibility of forced investigations such as raids on mask economic offenders and related companies.

Recently, the mask shortage has prolonged due to the COVID-19 situation. Crimes such as fraud and hoarding have played a significant role in this. With the prosecution stepping in to start focused investigations, attention is concentrated on the future outcomes. Recently, the government has been trying to limit the number of masks sold per person and establish price ceiling guidelines, which could greatly shake the mask market, currently in a state of continuous confusion.

The prosecution has already received many complaints related to masks. As of the 2nd, there were 73 COVID-19 related cases collected by the prosecution, of which 37 were confirmed as mask payment fraud cases. This accounts for nearly half. The prosecution plans to intensify investigations starting with the reported cases. Priority investigation targets have been set, including large-scale hoarding of health products by mask manufacturers and sellers, violations of emergency supply adjustment measures, large-scale undocumented transactions, and transactions involving substandard masks.

Once the National Tax Service completes its tax investigation, which started the day before, targeting 52 online mask sellers and secondary and tertiary distributors suspected of hoarding and tax evasion, the prosecution's investigation is expected to gain further momentum. The National Tax Service plans to immediately report related companies to the prosecution if suspicions are confirmed through this tax investigation.

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