From Fraudulent Deals to Illegal Drug Sales...Red Flags in the Used Goods Market

Last Year’s Used Goods Fraud Losses Increased About 4 Times Compared to Previous Year
Illegal Drug Transactions Including Anal Medication and Steroids Also Flourish

Last year, the amount of damage caused by fraud in secondhand transactions reached 360.61 billion won, marking the highest record and exceeding 100 billion won for the first time since the National Police Agency began compiling statistics.

[Asia Economy Reporter Kim Jung-wan] As the size of the secondhand trading market continues to grow, illegal transactions are rampant. While the amount of fraud damage caused by secondhand trading recently reached the highest level since the National Police Agency began compiling statistics, illegal trading of pharmaceuticals such as anal medications and steroids is also surging, calling for countermeasures.

According to data submitted by Yoo Dong-su, a member of the National Assembly’s Planning and Finance Committee from the Democratic Party of Korea (Incheon Gyeyang-gap), to the National Police Agency on the 26th, the amount of fraud damage from secondhand trading last year reached 360.61 billion KRW, the highest since the National Police Agency began compiling statistics. During the same period, the number of fraud cases detected in secondhand trading was 84,107, down from 123,168 cases the previous year, but the damage amount surged about fourfold compared to 89.754 billion KRW the previous year. This marks the first time since the National Police Agency started compiling statistics in 2014 that the damage amount exceeded 100 billion KRW.

The amount of fraud damage in secondhand trading has been increasing significantly every year. The fraud damage amount, which was 20.215 billion KRW in 2014, soared to over 360.6 billion KRW last year. From 2014 to last year, a total damage amount of 650.474 billion KRW occurred, with 55% of the total damage occurring just last year.

Illegal online pharmaceutical trading is also steadily taking place. According to data from the Ministry of Food and Drug Safety disclosed by Jo Myeong-hee, a member of the People Power Party, from 2018 to August this year, the number of cases detected for illegal online pharmaceutical advertising and sales over the past five years totaled 134,440, with more than 25,000 cases recorded annually.

Illegal drug transactions through secondhand trading are on the rise. The photo is not related to the specific content of the article.

Among online platforms, illegal activities involving the exchange of pharmaceuticals through secondhand trading are also rampant. According to data from the Ministry of Food and Drug Safety submitted to Choi Jong-yoon, a member of the Health and Welfare Committee from the Democratic Party of Korea, the number of cases detected for illegal trading of pharmaceuticals, medical devices, and health functional foods on secondhand trading online platforms such as Junggonara, Bungaejangter, Hello Market, and Danggeun Market reached a total of 1,357 cases from 2021 to August this year. According to the Pharmaceutical Affairs Act, Medical Device Act, and Health Functional Food Act, only authorized persons can sell pharmaceuticals, medical devices, and health functional foods, making personal transactions illegal.

By item, pharmaceuticals accounted for the highest number with 729 cases, followed by medical devices with 606 cases, and health functional foods with 22 cases. Looking at the detailed detection status by pharmaceutical type, this year, transactions of medications for erectile dysfunction and anal medications for the genitourinary system increased by 36 cases to 87 cases compared to the previous year. Fifty cases of illegal trading of Baek Dong-hwa (anabolic) steroids were also detected. These drugs promote protein synthesis within cells and help muscle development, but misuse can cause side effects such as hypothyroidism and elevated liver enzyme levels.

According to data received by Kim Won-i, a member of the same party, from the Ministry of Food and Drug Safety, as a result of a memorandum of understanding (MOU) signed last year between the Ministry and secondhand trading platform companies, the platform with the highest number of detected illegal pharmaceutical transactions was Danggeun Market (38.4%, 228 cases). This was followed by Junggonara (31%, 184 cases), Bungaejangter (20.1%, 119 cases), and Hello Market (10.5%, 62 cases).

There are also calls for measures as the secondhand trading market expands recently. According to the Korea Internet & Security Agency, the size of the secondhand trading market, which was 4 trillion KRW in 2008, grew to 24 trillion KRW last year. Representative Yoo said, "Victims of secondhand trading can request account payment suspension through civil lawsuits, but it takes a long time and costs, and even then, victims must know basic information such as the perpetrator’s name and account number and can only apply through the court, making it completely ineffective," adding, "It is time to expand and improve the account payment suspension system to protect victims."

Regarding illegal pharmaceutical trading through secondhand trading, Representative Jo emphasized, "Illegal pharmaceutical advertising and sales through online platforms are diversifying, and government monitoring efforts have limitations," adding, "It is necessary to strengthen management and supervision obligations for each platform or prepare measures such as expanding incentives for whistleblowers."