Mask Shortage Calms Down... Selling Offline at Around 1,800 Won per Piece

Kim Yong-beom, Deputy Minister of Economy and Finance, "Mask situation improved thanks to much cooperation... TF temporary situation room disbanded"

[Asia Economy Reporter Kim Hyunjung] The prices of mask products, which surged due to increased demand amid the novel coronavirus infection (COVID-19) crisis, are stabilizing. Since the government implemented the public mask policy, congestion at supply points such as pharmacies has also been decreasing.

According to Statistics Korea on the 5th, last month the price of mask products (KF94 standard) was in the 4,000 won range online and around 1,800 won offline at places like pharmacies and marts. This is lower compared to February’s prices of 5,000 won online and 2,000 won offline. In particular, looking only at pharmacies, the price was about 1,600 won, similar to the public mask supply price (approximately 1,500 won).

Masks are not officially included in the items for which Statistics Korea monitors prices. However, due to the steady increase in demand from last year’s fine dust issues and the sudden supply emergency caused by the COVID-19 crisis this year, Statistics Korea has been surveying and compiling market prices considering these special circumstances.

The price stabilization was effective after the government’s public mask policy, which directly intervened in distribution on February 26. At that time, the government announced it would sell 50% of the domestic mask distribution volume through nationwide pharmacies, post offices, and Nonghyup Hanaro Marts. However, as crowds and confusion continued at supply points, from March 6 the purchase quantity was limited to 2 masks per person, and from March 9 a weekday-based purchase system was implemented, where people could buy masks on designated days based on the second digit of their resident registration number.

Alongside this, a social movement arose encouraging people to refrain from purchasing masks if they were not urgently needed or if they had some stockpiled. The government increased the public supply to 80% of daily production and imposed export restrictions, leading to a rapid market stabilization.

The atmosphere on the ground is noticeably different. On the afternoon of the 3rd, at pharmacy A near Chungmuro Station in Seoul, a sign saying "Masks Available" was posted, and visitors could purchase masks immediately without waiting. The pharmacist at this pharmacy explained, "With alternatives like cloth masks and filters emerging and consumers’ anxiety easing, the situation is no longer as crowded as before. Previously, masks sold out as soon as they arrived, but now there is some surplus."

A representative of pharmacy B located on the second floor of an apartment shopping center in Hongneung-dong, Seodaemun-gu, said, "Perhaps because it’s on the second floor, sales are more relaxed," adding, "As time passes, congestion is decreasing and buyers seem more at ease."

The Ministry of Food and Drug Safety announced the day before that 12,154,000 masks would be supplied through public sales points over the weekend (April 4-5). On April 4 alone, a total of 9,793,000 masks were supplied. Of these, 8,323,000 went to pharmacies, 166,000 to Hanaro Marts, and 1,304,000 to medical institutions. On April 5, a total of 2,361,000 masks will be supplied, with about 2,272,000 to pharmacies and 89,000 to Hanaro Marts. On weekends, people who could not purchase masks during the week can buy them regardless of their birth year.

Kim Yongbeom, the 2nd Vice Minister of Strategy and Finance, who has been monitoring the mask supply issue on the front lines, recently evaluated the mask situation as "much improved." He stated this on his SNS the day before, attributing it to "the understanding, cooperation, and dedication of many people."

He also mentioned the tense situation until the temporary situation room was disbanded on March 23 after the mask 5-day rotation system was implemented. He recalled, "The mask purchase duplication verification system started on March 6, and the mask 5-day rotation system began on March 9. Many ministries and agencies participate in the entire process of encouraging production, purchasing, allocating, transporting, and selling. Exhausted from constant phone consultations, they naturally gathered at one place, and the public mask temporary situation room was set up on the 10th floor of the Gwanghwamun Government Complex."

Posting several photos together, Vice Minister Kim wrote, "This is the scene at the Gwanghwamun temporary situation room around 11 p.m. on March 9 and 10, when the mask 5-day rotation system first started and tension was at its peak," adding, "You can see notes on the whiteboard about how to secure mask supplies and where to allocate them." He continued, "It’s already April. I hope that by the time lilacs and roses bloom, we can take off our masks and enjoy the scent of flowers."