Lee Jae-myung Considers Criminal Referral for Mask Hoarding, Takes Hardline Stance

[Suwon Ilbo=Park No-hun] Gyeonggi Province Governor Lee Jae-myung is considering criminal referrals for mask hoarding businesses and recommending the government to set maximum prices, as Gyeonggi Province takes hardline measures against unfair practices related to COVID-19.

Gyeonggi Province announced on the 1st that it made an official recommendation to the Ministry of Strategy and Finance and the Ministry of Health and Welfare on the 31st to set maximum mask prices and implement emergency supply and demand adjustment measures.

Under the current Price Stability Act, the relevant minister can set maximum prices for specific goods to protect the livelihood of ordinary people and stabilize the national economy. Additionally, when prices surge sharply and supply shortages cause supply and demand regulation functions to break down, the minister can implement necessary measures through emergency supply and demand adjustment, including directives on supply and shipment.

The province transmitted such recommendations to the Ministry of Strategy and Finance and the Ministry of Health and Welfare, and is also reviewing the possibility of criminal referral of hoarding businesses on the basis of unjust enrichment under the Criminal Act using the governor's authority before maximum prices are set. This measure stems from the determination that profiting unfairly by exploiting people's desperate circumstances is clearly a crime.

Previously, Governor Lee requested at a comprehensive COVID-19 response meeting chaired by President Moon Jae-in on the 30th that masks be included in the list of goods prohibited from hoarding, as mask prices are skyrocketing.

In response, the government plans to establish a notice prohibiting hoarding practices by early next month, imposing sentences of up to two years imprisonment or fines of up to 50 million won on those who hoard or refuse to sell goods with the intent to make excessive profits.

Concurrently with the government recommendation, Governor Lee has launched strong measures against mask hoarding related to COVID-19 spread.

Starting from the 31st, Gyeonggi Province is conducting on-site guidance and inspections of mask sales and manufacturing businesses within the province using the Gyeonggi Provincial Special Investigation Police, while also enforcing price display requirements for masks at retail stores with a floor area of 33㎡ or more. The province is also operating a reporting center (031-251-9898) to prevent consumer damage from online order cancellations and hoarding, and plans to conduct investigations on reported businesses. If illegal matters are found, the province plans to take strong measures including administrative fines and criminal referrals under the Electronic Commerce Act.

Governor Lee stated, "Treating anxiety about disease as a means of making money is the most dishonorable foul play," adding "We will mobilize every measure available to the Gyeonggi Provincial Government to take stronger action than ever against unfair practices that hold people's health hostage."