Mask Manufacturer CEO: "People Are Lining Up Asking for Money First, Claiming They'll Give 12 Billion Won"

Mask Hoarding Punishable by Up to 2 Years Imprisonment or Fine Up to 50 Million KRW
"Fine Should Be at Least 1 Billion KRW"

On the 31st of last month, a sold-out notice was attached to the mask display at a large supermarket in Seo-gu, Gwangju.
Photo by Yonhap News

[Asia Economy Reporter Kim Suwan] As the novel coronavirus infection (Wuhan pneumonia) spreads and mask shortages continue, Park Jonghan, CEO of the mask manufacturer 'Wellkips,' criticized on the 3rd, saying, "In the past, profiting from a national disaster or disaster situation would have been punishable by severe corporal punishment."

In an interview with CBS's 'Kim Hyunjung's News Show' on the 3rd, CEO Park said, "Generally, large manufacturers or companies with brands do not recklessly adjust supply prices all at once. However, online resellers or distribution vendors who receive goods from them are making excessive profits in the middle," he said.

CEO Park stated, "I have seen people buying our products on home shopping for 500 to 600 won and selling them for up to 4,500 won," adding, "This is truly unacceptable, and there needs to be stronger punishment or crackdowns on this issue."

He continued, "I receive about 200 calls a day. Among them, about 150 calls are from people who say that if we supply masks, they will initially pay 500 won, then 1,000 won, and now it has risen to 1,700 won," adding, "There are even people lining up saying they will put 12 billion won into the company account first."

He also said, "Officials from Chinese provincial governments have been dispatched in large numbers to stockpile masks," and "They are stockpiling through brokers who have any connection to the mask industry."

CEO Park also revealed, "I have received several proposals from executives of large companies such as Chinese distribution channels Darunfa and Alibaba, asking to secure as many as 10 million units of masks."

In particular, CEO Park evaluated the government's prohibition measures on hoarding masks as "very weak," and argued, "At least 1 billion won in penalties should be imposed. Suspension of manufacturing, suspension of online sellers, permanent ban on online permits, and punitive fines are necessary."

Earlier, the government announced that it would enact a notice by early this month prohibiting hoarding of masks and other items and would take strict measures against those who hoard or sell goods for excessive profits. Violators will be subject to correction or suspension orders and face imprisonment of up to two years or fines of up to 50 million won.