Government Offers Rewards for 'Mask Paparazzi'... Duplicate Purchase Verification App to Launch Soon (Comprehensive)

Briefing on 'Mask Supply Stabilization Measures' Held on the 9th
Kim Yong-beom, Deputy Minister of Economy and Finance, "Full Effort to Legitimize Private Supply"

On the 9th, when the mask 5-day rotation system was implemented, citizens are purchasing masks by presenting their ID cards at a pharmacy in Jongno-gu, Seoul. Due to the mask 5-day rotation system, individuals can purchase 2 masks per person per week at pharmacies based on their birth year. Photo by Hyunmin Kim kimhyun81@

[Sejong=Asia Economy Reporters Kim Hyunjung and Jang Sehee] The government is operating a voluntary reporting period for hoarding of masks until the 14th. It plans to make every effort to legalize private sector mask supplies by providing rewards to those who report hoarding activities. Additionally, an application (app) that can verify duplicate purchases and other factors will be launched soon to ensure stable sales of public mask supplies.

On the morning of the 9th, Kim Yongbeom, First Vice Minister of the Ministry of Economy and Finance, held a joint briefing on the "Full-scale Implementation of Measures to Stabilize Mask Supply" at the Government Complex Seoul, attended by officials from the Ministry of Food and Drug Safety, Public Procurement Service, and other related agencies. This announcement marks the government's fifth mask-related measure since the outbreak of COVID-19 and the fourth supply stabilization plan.

At the briefing, the government presented a plan to legalize private sector mask supplies, which account for about 20% of daily production. This is in response to concerns that the sudden drop in market-distributed masks to 20% of production would trigger competition for masks in the private sector, leading to a concentration of mask procurement by certain local governments and companies with stronger negotiation and purchasing power.

To curb illegal mask distribution, the government will hold a "special voluntary reporting period for hoarding" from the 10th to the 14th of this month. During this period, businesses that report hoarding will receive ▲a reprieve from punishment, ▲protection of their identity and anonymity, ▲purchase of reported quantities by the Public Procurement Service at appropriate prices, and ▲non-disclosure of report details to the National Tax Service for tax audits. Furthermore, those who report hoarding as public interest whistleblowers will be thoroughly protected and rewarded. This effectively introduces a "Mask Paparazzi" system.

[Image source=Yonhap News]

Vice Minister Kim Yongbeom emphasized, "This will open the possibility of legalizing existing hoarded mask supplies," adding, "After the special voluntary reporting period, any hoarding detected will be dealt with more strictly based on a zero-tolerance, full-force response principle."

He also mentioned that simulation work on setting a maximum price has begun. Vice Minister Kim said, "There is a legal basis for the announcement, 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," adding, "We are simulating whether setting a maximum price at a certain level can suppress excessive profiteering while ensuring sufficient supply."

Additionally, he reported that app development is underway to ensure more stable supply of public mask supplies, which account for 80% of daily production. He explained, "The app will be opened to the public in the near future," and "Since this app was designed in a short period of 3 to 4 days, it focuses on verifying duplicate purchases." He continued, "Unlike convenience store POS systems, a system that applies sales data to the center in real time is not yet implemented," and added, "The more functions the app has, the greater the workload on pharmacies. Since these two factors conflict, discussions are ongoing between the app developers and the Korean Pharmaceutical Association to balance the burden on pharmacies and the Health Insurance Review and Assessment Service."

The government also provided a relatively detailed explanation for selecting only two mask public supply distributors, Geo Young and Baekje Pharmacy, in response to criticism that this was a 'special favor.' The government emphasized that this was an unavoidable choice to ensure efficiency in tracking, hoarding prevention, and profiteering control.

The government disclosed mask transaction prices at each distribution stage. The Public Procurement Service buys masks from manufacturers at 900 to 1,000 won, sells them to Geo Young and Baekje Pharmacy at 1,100 won, and pharmacies sell them to consumers at 1,500 won. In this process, intermediaries earn 100 to 200 won, and pharmacies earn a 400 won margin. The Ministry of Economy and Finance stated that this is "not considered an excessive price."

Meanwhile, on the same day, the Ministry of Trade, Industry and Energy continued its swift response by issuing an outbound adjustment order under Article 5, "Adjustment Orders on Production, Shipment, and Sales," for the first time since implementing emergency supply adjustment measures for mask filter nonwoven fabrics on the 6th. Accordingly, the ministry issued an outbound adjustment order for 4 tons of shipments from four filter nonwoven fabric manufacturers, enabling five mask manufacturers to increase production. The secured quantity has been used in mask production by some companies since the 8th.

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