[Q&A] Vice Minister of Economy and Finance: "Simulation Started for Mask Price Ceiling Designation... App to be Released Soon"

Joint Briefing on the Full-scale Implementation of Mask Supply Stabilization Measures on the 9th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Kim Yongbeom, the 1st Vice Minister of the Ministry of Economy and Finance, said on the 9th, "We are conducting simulations to see at what level the maximum price can be set to suppress excessive profiteering while ensuring a large supply of masks."

On the same day, Vice Minister Kim held a joint briefing at the Government Complex Seoul regarding the "Full-scale Implementation of Measures to Stabilize Mask Supply," stating, "The Ministry of Economy and Finance, the Fair Trade Commission, and the Ministry of Food and Drug Safety are analyzing trends in the distribution market." Officials from related ministries and agencies, including the Ministry of Economy and Finance, the Ministry of Food and Drug Safety, and the Public Procurement Service, attended the briefing.

Vice Minister Kim added, "I expect that the Ministry of Economy and Finance will not hold joint briefings on masks again," and said, "The Ministry of Food and Drug Safety, the Ministry of Trade, Industry and Energy, and the Fair Trade Commission each have clearly defined roles, so they just need to fulfill their responsibilities."

Below is a Q&A session with Vice Minister Kim.

▲ Since masks are distributed uniformly across all regions, it seems that some areas are experiencing difficulties in purchasing them.

= You mentioned that the availability and ease of purchasing masks differ according to population density. Pharmacies, numbering around 23,000, are the main distribution points, with Nonghyup and post offices playing supplementary roles. Pharmacies, Nonghyup, and post offices are located in the Seoul metropolitan area. Even within the metropolitan area, pharmacies are mostly concentrated around hospitals. Since pharmacies tend to be concentrated near large hospitals, the distribution within regions is not exactly uniform; there are regional differences in pharmacy distribution. Analyzing how distribution corresponds to population movement is a very detailed task, so for now, 250 masks are allocated per pharmacy. Today marks the first day of the 5-day mask purchase system and the 2-mask per person purchase limit, so we need to analyze the results going forward. After about a week of full implementation, microdata will accumulate, which we will analyze to determine where shortages and surpluses exist.

▲ I understand that a mask app is under development. Will it be possible to track stock levels and arrival times?

= The app will be opened to the public in the near future. Since the app was designed in a short period of 3 to 4 days, its main focus is on preventing duplicate purchases. It does not yet support a system where sales at convenience store POS terminals are immediately reflected in real-time at the central system. The more features the app has, the greater the workload on pharmacies. Because these two factors conflict, the app developers and the Korean Pharmaceutical Association are discussing how to balance the burden on pharmacies and the Health Insurance Review & Assessment Service.

▲ You mentioned setting a maximum price for private sector mask supplies. What is the current status?

= We are monitoring both online and offline sales of private sector supplies. There is a legal basis for designating a maximum price for masks, and the Ministry of Economy and Finance, the Fair Trade Commission, and the Ministry of Food and Drug Safety are analyzing trends in the distribution market. We are conducting simulations to determine at what level the maximum price can be set to suppress excessive profiteering while ensuring a large supply.

▲ You said that the Public Procurement Service will purchase reported supplies at an appropriate price. What level do you expect?

= The Public Procurement Service's price is the purchase price plus other incidental costs or the current purchase price. Those hoarding distribution supplies have purchased them from producers, so it is unlikely that their prices are higher than what the Public Procurement Service pays. The Public Procurement Service generally adds a premium when purchasing, so the initial purchase price from producers is probably not that high. The cost including minor incidental expenses is likely not higher than the current purchase price by the Public Procurement Service. We believe it will be possible to purchase at an appropriate price considering other costs.

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