S. Korea incentivizes mask monopolizers to turn themselves in

In an effort to secure the supply of face masks and curb excessive profiteering, the government on Monday announced it will suspend punishment for monopolizers who voluntarily report themselves within a grace period.

The action came on the sidelines of a rationing system that allows people to buy two protective masks per week from pharmacies on designated days.

“We judged that the top priority is to secure as many (protective) masks as possible that may be distributed through public channels (to answer soaring demand),” said Kim Yong-beom, first vice minister of finance.

For those who report themselves for attempting to corner the highly demanded products during the March 10-14 period, the government will suspend punishment and purchase the on-hand quantity at a reasonable price, according to Kim. Also, the identity and name of these self-assessed sellers will remain protected.

Under the current Price Stabilization Act, those who hoard facial masks for profiteering purposes may face a maximum jail term of two years or a fine of 50 million won ($41,600).

The senior fiscal official’s remarks came during a supply stabilization briefing held at the Seoul Government Complex jointly with the respective chiefs of the Ministry of Food and Drug Safety and Public Procurement Service.

As an incentive for whistleblowers, the government offered a special reward within a ceiling of 200 million won.

“Those who wish to make anonymous reports (on mask monopolization) may contact the Anti-Corruption & Civil Rights Commission via phone, mail, email or direct visits (to the office),” said the vice minister.

“The related committee will then make deliberations on whether the given report contributed to the government’s anti-cornering actions to decide the amount of the reward.”

Those seeking to turn themselves in should contact the MFDS through its website or call center.

Once the special grace period is over, however, the government will observe a “zero tolerance” stance against market cornering practices, the vice minister said.

Meanwhile, the country kicked off a rationing system for face masks to answer skyrocketing demand despite the government’s quarantine actions and supply measures. Complaints mounted last week as people had to wait in long lines to buy masks provided via public channels such as post offices.

Under the latest distribution measure, people will be allowed to purchase two masks per week from pharmacies on designated days of the week, depending on the final number of their year of birth. The corresponding numbers for Monday were 1 and 6.

By Bae Hyun-jung (tellme@heraldcorp.com)