Seoul City Cracks Down on Hoarding and Price Gouging of 'Health Masks'... 25 Companies Caught

Crackdown on Massage Oil Manufacturers and Wholesalers in Seoul
Suspected Hoarding and Tax Evasion

Health masks loaded inside the vehicle (Provided by Seoul City)

[Asia Economy Reporter Hyunju Lee] Seoul City announced on the 5th that it had identified 25 suspected law-violating companies after conducting a focused crackdown on 267 manufacturers and wholesale (distribution) companies of 'health masks.'

In relation to the novel coronavirus infection (COVID-19), the city carried out inspections of mask manufacturers and wholesale companies located in Seoul from January 31 to the 3rd of this month to prevent damage to citizens.

The inspection results revealed violations including 4 cases of hoarding, 2 suspected cases of tax evasion, and 16 cases of false information entered by e-commerce wholesale and retail companies.

Specifically, Company A was found to have held stock exceeding twice the limit set by the hoarding prohibition notice for more than 10 days, and was referred to the Ministry of Food and Drug Safety for investigation. If deemed hoarding, the company will be prosecuted under the Price Stabilization Act and face up to 2 years imprisonment or a fine of up to 50 million won. Company B, an exporter of cosmetics and medical devices, was caught distributing health masks domestically after purchasing them under the false pretense of export to apply a zero tax rate.

Additionally, the city is monitoring approximately 40,000 e-commerce companies and sends price increase warning emails to those selling above the standard price. On-site inspections are being conducted to investigate distribution stages. Subsequently, legal procedures such as imposing fines will be initiated, and the Ministry of Food and Drug Safety will be asked to determine violations of the Pharmaceutical Affairs Act.

Seoul City also operates a Mask and Hand Sanitizer Hoarding Report Center and an Online Shopping Damage Intensive Report Center.

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