Prosecutors Expand Investigation into 'Mask Hoarding'... Raids on Over 10 Filter Suppliers and Others (Comprehensive)

[Asia Economy Reporter Song Seung-yoon] The prosecution conducted raids on multiple mask fabric (filter) supply and brokerage companies on the 11th in connection with illegal activities such as hoarding masks amid the spread of the novel coronavirus infection (COVID-19).

The Seoul Central District Prosecutors' Office's Special Investigation Team for Disruptors of Health Product Distribution (Team Leader Jeon Jun-cheol, Head of the Anti-Corruption Investigation Division 2) dispatched more than 50 prosecutors and investigators to conduct raids on about 10 mask fabric supply and brokerage companies in the Seoul metropolitan area, including Seoul and Incheon.

The prosecution detected signs that these companies attempted to gain unfair profits by supplying raw materials for masks to mask manufacturers and receiving finished masks in return. They secured transaction records of raw and subsidiary materials. It was also reported that brokers intervened in the process of sending imported materials to mask manufacturers, influencing the increase in fabric prices.

The prosecution suspects that these companies may have violated the Price Stabilization Act and Emergency Supply and Demand Adjustment Measures. Under the Price Stabilization Act, hoarding of health products is designated as speculative hoarding by the Minister of Strategy and Finance if it is recognized as likely to harm price stability, punishable by up to two years imprisonment or a fine of up to 50 million won. If evidence of undocumented transactions by the companies emerges, the prosecution plans to apply charges under the Tax Offense Punishment Act as well.

On the 10th, citizens are lining up to purchase public masks at a pharmacy in Myeongdong, Jung-gu, Seoul. Photo by Mun Honam munonam@

Besides securing evidence to prove the charges, the prosecution plans to allow masks legally produced and without quality issues, currently held by the businesses, to be distributed immediately as much as possible.

Earlier, on the 6th, the prosecution had already begun forced investigations by raiding about 10 mask manufacturing and distribution companies in the metropolitan area. Through the raids, the prosecution secured production and transaction records of masks and traced the distribution routes of raw materials, uncovering such circumstances and conducting additional raids on related companies.

On the 27th of last month, the Supreme Prosecutors' Office sent a directive letter titled 'Strict Measures on COVID-19 Related Cases and Dissemination of Case Handling Standards' to prosecutors nationwide. The letter instructed that crimes related to 'mask distribution disruption and fraud involving health products' be handled more severely than the existing case handling standards, considering the seriousness of the situation.

On the 3rd, as the spread of the novel coronavirus infection (COVID-19) continued, commuters near Gwanghwamun in Seoul hurried on their way to work wearing masks. Photo by Hyunmin Kim kimhyun81@

Accordingly, on the 28th of last month, the Seoul Central District Prosecutors' Office formed a special investigation team for mask-related crimes, led by former Head of Anti-Corruption Investigation Division 2, and deployed eight prosecutors. This special investigation team is cracking down on ▲ large-scale hoarding of health products by mask manufacturers and sellers ▲ violations of emergency supply and demand adjustment measures ▲ large-scale undocumented transactions and transactions of defective masks.

Meanwhile, as of 9 a.m. on the day, the prosecution is managing a total of 221 COVID-19 related cases. This is an increase of 13 cases from 208 the previous day and 23 cases from 198 two days prior.

Specifically, there are 25 cases under investigation, 179 cases under police supervision, 14 prosecutions (5 detained prosecutions), and 3 non-prosecutions.

By charge, there are ▲ 99 cases of mask payment fraud (fraud) ▲ 39 cases of hoarding health products (violation of the Price Stabilization Act) ▲ 38 cases of spreading false information (obstruction of business, etc.) ▲ 18 cases of leaking information on confirmed or suspected patients (breach of official secrets, etc.) ▲ 9 cases of false reporting of contact with confirmed patients and false statements or refusal of quarantine during epidemiological investigations (obstruction of official duties by deception, etc.) ▲ 18 cases of selling uncertified masks and smuggling masks (violation of the Pharmaceutical Affairs Act and Customs Act).

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