Government Steps In: Will the 'Mask Shortage' Calm Down... Spread Slows and Supply is 'OK'

On the 13th, customs officers at the Incheon Airport Import-Export Clearance Building in Yeongjongdo, Jung-gu, Incheon, are displaying masks seized due to smuggling amid the COVID-19 pandemic. The Korea Customs Service announced that during the intensive crackdown from the 6th to the 12th of this month to prevent illegal overseas export of masks related to the COVID-19 situation, they blocked 72 cases involving 730,000 masks. / Yeongjongdo ? Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Hyunjung] As the spread of COVID-19 has somewhat subsided and the supply of related raw materials is showing a smooth flow, it is expected that the 'mask crisis' will ease. The government and local governments have also expressed strong intentions to crack down, and it is anticipated that consumer prices, which had soared due to anxiety about the virus and hoarding by some middlemen, will normalize.

According to Seoul City on the 16th, the price of health masks has surged by more than 70% recently due to the spread of COVID-19. From the 31st of last month, inspections were conducted at 12,000 retail stores in the city, and health masks were being sold at 2,000 to 4,000 KRW per piece based on the KF94 standard. This is 69 to 238% higher than the average price of 1,182 KRW in April 2018. The price of hand sanitizers was 2,000 to 8,000 KRW per 100 ml.

Since the 5th, Seoul City has been intensively cracking down on hoarding of COVID-19 related items such as masks together with autonomous districts. So far, 120 distribution companies have been inspected, and suspicious transaction histories have been detected. Cases found include trading about 180,000 health masks in cash with overseas traders or purchasing about 200,000 masks in cash at a personal massage shop operated by a foreigner. Seoul City is also investigating 250 online shopping malls that sell masks at prices more than 50% higher than usual.

The supply of raw materials is also stable. The government has publicly stated that there will be no problems in the supply of raw materials for health mask production. The government estimates that the maximum total daily production capacity of 123 domestic mask manufacturers is 10 million pieces, and most of the melt-blown nonwoven fabric (MB filter) required for production is produced domestically. Kim Yongbeom, the 1st Vice Minister of Strategy and Finance, said at the recent 'Meeting to Check the Progress of Preventing Market Disturbance Activities such as Masks,' "Currently, most of the MB filters required for daily production of around 10 million pieces are produced domestically," and added, "We will closely monitor the supply situation of raw materials for health masks and respond to ensure there are no disruptions in production."

Efforts are also actively underway to stabilize supply through distribution companies. Public Home Shopping sold a total of 1 million masks without profit, including 470,000 in February and 530,000 in March. Nonghyup has agreed to supply 250,000 masks in the second week and 130,000 masks in the third week of February through Hanaro Mart and Nonghyup Mall. Post Office Shopping has already sold 150,000 masks in January and February and is working to secure additional quantities.

As of the afternoon of the 16th, the number of confirmed COVID-19 cases is 29, six days after the 28th patient was confirmed on the 10th. On the morning of the same day, the 29th patient (an 82-year-old Korean male) was confirmed domestically. The 29th patient is currently hospitalized and receiving treatment in an isolation ward at Seoul National University Hospital. Although he has fever and pneumonia, his overall condition is good. Among the confirmed cases, nine patients (patients 1, 2, 3, 4, 7, 8, 11, 17, and 22) have fully recovered and been released from isolation.