Mask Supply Control Faces 'Mask Reselling' Surge... Suspicions of Hoarding Arise

Active Mask Trading as Government Steps in to Regulate Supply
Concerns Over Price Drop Raise Suspicions of Reselling 'Stockpiled Masks'

On the 29th of last month, some products were sold out and the mask display shelf was empty at a large supermarket in downtown Daegu. According to a representative of the supermarket, as citizens' concerns about the novel coronavirus increased, mask sales this week have risen by about 30% compared to last week. [Photo by Yonhap News]

[Asia Economy Reporter Han Seung-gon] As the government has implemented emergency supply adjustment measures for masks, posts selling masks are increasingly appearing on internet cafes where used goods can be traded.

There are suspicions that masks, which were hoarded in large quantities due to concerns about price drops from supply adjustments, are being resold before prices fall further.

On the afternoon of the 27th, dozens of posts appeared on an internet cafe selling new masks rather than used ones. Prices ranged from 1,300 to 1,500 won, with some sellers offering up to 3,000 pieces.

Considering that the average price per mask before the COVID-19 outbreak was around 800 won, these prices are high. Currently, the market price for one mask averages around 3,000 won. Even if sold at 1,500 won per mask in used goods cafes, sellers are making excessive profits.

Given this situation, suspicions have arisen that masks hoarded out of fear of price drops due to government supply adjustments are being resold before prices plunge further.

A 30-year-old office worker, Mr. A, said, "Just last week, masks were completely unavailable," adding, "But now that the government is regulating mask supply, mask trading has become active. If these are hoarded masks being sold on the market, those people are truly despicable."

Another 30-year-old office worker, Mr. B, said, "They are bad merchants who calculate people's suffering in terms of money," and raised his voice, "I hope they receive appropriate punishment through police investigations."

Kim Yong-beom, Vice Minister of Strategy and Finance, is inspecting the supply status of hygiene products to prevent market disruption by visiting pharmacies around Myeongdong, Jung-gu, Seoul on the morning of the 28th.
[Image source=Yonhap News]

Hoarding masks violates the Price Stabilization Act, using macros constitutes obstruction of business, and resale activities can be punished as unjust profits.

In fact, on the 17th, a company in the Seoul area that sold 17,000 masks without reporting sales to the Ministry of Food and Drug Safety is under police investigation for violating emergency supply adjustment measures.

As hoarding has become rampant, the police announced on the 28th that they have launched a special crackdown team to crack down on illegal activities disrupting mask distribution order, such as hoarding.

The special crackdown team on illegal activities such as hoarding plans to focus on four main offenses: ▲disrupting mask distribution order ▲hoarding and emergency supply adjustment violations such as mask "hoarding" ▲using macros (automated repetitive programs) for hoarding and resale of masks ▲collecting and reselling masks beyond the allowed purchase quantity.

Meanwhile, the Korea Post under the Ministry of Science and ICT announced that it will begin selling health masks from 2 p.m. on the 28th.

In Jeju region, sales will start at 5 p.m., and in island areas, sales will begin upon arrival. Also, post offices that operate only in the morning started sales from 11 a.m.

The post offices selling masks include 89 post offices in Daegu and Cheongdo areas and 1,406 locations in towns and townships nationwide. In urban areas, masks will be sold mainly through about 2,400 pharmacies, and post offices will sell only in special COVID-19 management areas or towns and townships.

Sales are limited to 5 masks per person, priced at 4,000 won (800 won per mask). However, the Korea Post explained that prices may vary depending on the manufacturer and mask type.

The Korea Post plans to sell masks through online shopping malls alongside post office counters once supply stabilizes in the future.