[Q&A] Vice Minister of Economy and Finance: "Public Mask Supply Price Unified at 1500 Won"

[Sejong=Asia Economy Reporter Kim Hyunjung] Kim Yongbeom, the 1st Vice Minister of the Ministry of Strategy and Finance, stated that the prices of government-supplied masks, which currently vary by sales channels such as post offices and Nonghyup, will be unified at around 1,500 won. He also announced that for the private mask supply, which accounts for about 20% of daily production, a maximum price will be set if necessary to prevent sudden price surges.

After announcing the 'Mask Supply Stabilization Measures' at the Government Seoul Office on the 5th, Vice Minister Kim said, "If the price of the 20% supply to the private sector rises excessively, there will be an increasing temptation to divert masks from the public supply," adding, "Since various side effects are expected, we will manage the 20% private supply and set a maximum price if it affects the public distribution."

He continued, "We have decided to unify the selling price at public sales points to around 1,500 won," emphasizing, "Although I cannot guarantee exactly when this will start, we will align the prices as soon as possible."

He also mentioned Taiwan's 'I'm Okay, You First' campaign. He said, "Taiwan has a campaign called 'I'm Okay, You First,' which I think is worth referencing in our country as well," stressing, "Those who have stockpiled masks or have limited outdoor activities or contacts should voluntarily participate in such campaigns to ensure that masks are distributed to those who really need them."

Below is a Q&A session.

▲ When will the maximum price be designated?

= The maximum price applies to the 20% supplied to the private sector. If private demand surges excessively, there may be temptations to divert masks from the 80% public supply, and various side effects are expected. Therefore, strict management of the 20% private supply is necessary, and if market disruption occurs to the extent that it affects the fair distribution of the 80% public supply, a basis for setting the maximum price has been established.

▲ Since minors must visit in person and wait in the cold, parental objections are expected. Are there alternative measures?

= Considering fairness with on-site waiters and difficulties in mask supply, inter-agency agreement was reached that proxy purchases are difficult to allow. For minors, identification can be verified with a passport, or if unavailable, a student ID and resident registration certificate. If accompanied by a legal guardian presenting their ID and resident registration certificate, it is possible. Regarding the 5-day rotation system, if parents and minors have different days, the parent's day will be applied. For disabled persons, proxies can collect masks based on the last digit of the resident registration number.

▲ After capacity expansion, when the COVID-19 situation ends and demand drops sharply, disposal of increased production could be an issue.

= Regarding stockpiling, it is a matter of scale, but we plan to stockpile a considerable amount newly. The demand will not be insignificant. Additionally, stable demand channels for masks will be created. Those who newly expanded production during this period, those who did their best in production during this period, and especially those who produced on weekends will be given preferential treatment through stockpile purchase principles.

▲ How will the duplicate purchase prevention system be introduced?

= First, there is a care management system. A system connecting pharmacies and the Health Insurance Review & Assessment Service has been established and will start operation from tomorrow. The three main purchase principles, including the 5-day rotation system, will be fully implemented from March 9. From the 6th to the 8th, as a transitional period, pharmacies will apply the 1-person 2-mask principle and duplicate verification system, but the 5-day rotation system will not be applied.

▲ In the US and Europe, healthy people are not required to wear masks.

= Masks are mandatory for hospital workers, those in close contact with patients, and similar criteria exist. The WHO guidelines include 5 or 6 recommendations, but there is no standalone mask item. Washing hands thoroughly, refraining from activities, and other major principles do not include masks. The US Health Secretary's recommendation was understood as masks are difficult to use properly and that people must wash hands well, so the general public does not need to wear masks constantly.

= (Kim Daeup, President of the Korea Pharmaceutical Association) The functions of masks can be summarized as two: preventing infection from outside and preventing one's droplets from infecting others. For healthy people, wearing cloth masks to prevent their droplets from spreading outside has a certain preventive effect. In fact, during the COVID-19 prevention process, the functions and roles of KF masks were somewhat over-promoted. Therefore, it should be emphasized that healthy people do not necessarily have to wear masks during outdoor or normal activities.

▲ Please provide the supply quantities by sales channel.

= The integrated system is expected to take about a week to build. Until then, Nonghyup and post offices will strictly implement the 1-person 1-mask standard independently. Based on 6 million masks, about 22,500 pharmacies will be included within this range. Nonghyup Hanaro Mart has 1,898 locations, and post offices have 1,406. These will be included in the system for supply. Nonghyup and post offices aim to supply about 100 masks per location, and pharmacies aim to supply about 250 masks daily per pharmacy. Approximately 5.6 million masks will be allocated to pharmacies, 190,000 to Nonghyup, and about 150,000 to post offices.

▲ Are there penalties if pharmacies, post offices, or Nonghyup violate the duplicate purchase system and sell masks through loopholes?

= Public sales points must comply with obligations set by the Ministry of Food and Drug Safety. The 1-person 1-mask principle is a requirement. They will keep records voluntarily, and inspections will be conducted afterward. If the principle collapses and major confusion occurs, it will be difficult for the public system to function. We expect strict compliance under their own responsibility.

▲ You said you would raise the purchase price by more than 100 won to encourage increased weekend production. Will consumer prices also rise?

= Currently, the procurement price is about 100 won higher than the usual supply price from manufacturers. This means the Public Procurement Service will contract with a price more than 100 won above the average supply cost. Additionally, weekend production will be priced even higher. The selling price at public sales points will be unified at around 1,500 won. Although I cannot guarantee exactly when this will start, we will align the prices as soon as possible.

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