Seoul City Cracks Down on Six Individuals Illegally Manufacturing and Selling Disinfectants Amid COVID-19
Manufactured and Sold Illegal Products Worth 230 Million KRW Over One Year Through 35 Online Shopping Malls
Attached Fake Labels Using Registration Numbers of Similar Famous Companies... Also Below Standard Content Levels
[Asia Economy Reporter Lim Cheol-young] On the 17th, the Seoul Metropolitan Government's Civil Life Judicial Police Unit announced that it has booked six business operators for violating the Food Sanitation Act for selling disinfectants, whose usage has surged due to the prolonged COVID-19 pandemic, without registering as specialized distributors and by illegally using the Ministry of Food and Drug Safety (MFDS) and Ministry of Environment registration numbers of other well-known companies.
The A sales company caught this time was confirmed to have commissioned the manufacture of disinfectants through Original Equipment Manufacturing (OEM) from B manufacturing company and sold approximately 230 million KRW worth of products on 35 online shopping malls at prices higher than similar products without registering as a specialized distributor. As the demand for disinfectants, which are quarantine supplies, surged due to the prolonged COVID-19 pandemic, company A, which had been selling other companies' disinfectants, signed an exclusive OEM contract with company B to maximize profits by distributing products under its own brand. Despite not registering as a specialized distributor, it set the selling price at seven times the supply price and about twice the price of similar products on the market.
Additionally, to increase sales, company A established additional companies using family members to appear as multiple sellers during product searches. According to the Food Sanitation Act, businesses that distribute and sell food additives manufactured or processed by a food additive manufacturer under their own brand must report to the competent authority. Violations are punishable by imprisonment of up to three years or a fine of up to 30 million KRW.
Company B, which manufactured and supplied disinfectant products to company A, was found to have used counterfeit labels displaying the MFDS and Ministry of Environment registration numbers of company C, a well-known company in the same industry. Company C, whose registration numbers were illegally used, protested multiple times to company A, but companies A and B engaged in a blame game and did not correct the issue. They continued to sell illegal disinfectants until the Seoul Metropolitan Government conducted a search and seizure operation, leading to their capture.
The Seoul Metropolitan Government stated that disinfectants classified as food additives must be manufactured after reporting the product manufacturing to the MFDS or relevant authorities. However, company B did not follow this procedure and attached false labels. The authorities plan to request administrative action against the manufacturer. Furthermore, company A falsely advertised the product as suitable for direct use on vegetables and other foods. However, after purchasing the products three times and requesting the Seoul Metropolitan Government's Health and Environment Research Institute to conduct standard inspections for food-use disinfectants, all products failed to meet the standards.
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Citizens can verify whether food additive disinfectants are properly registered by checking the MFDS product report number on the Food Safety Korea website and the Ministry of Environment's household chemical product registration number on the Environmental Safety Information System. Kang Ok-hyun, head of the Seoul Civil Life Judicial Police Unit, stated, “We will thoroughly track and investigate companies that illegally manufacture and sell various protective products, including disinfectants, which are essential daily items for citizens, taking advantage of the prolonged COVID-19 pandemic, to alleviate citizens' concerns.”
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