[Press Release, Feb 4, 2020 / unofficial translation ]



Enforcement of public notice on the prohibition of cornering and hoarding of filtering respirators and hand sanitizers (Feb. 5)


□ The government is enforcing the “Public Notice on the Prohibition of Cornering and Hoarding of Filtering Respirators and Hand Sanitizers” as of 00:00 on Feb. 5, 2020(Wed.) through fast-track review of the regulation. The purpose of this public notice is to prevent amassing and selling of filtering respirators and hand sanitizers for exorbitant prices to profiteer amid the COVID-19 crisis.

○ The scope and criteria for the prohibition of price gouging and hoarding are as follows:

① (subject items) filtering respirators, and hand sanitizers
② (subject individuals) manufacturers and sellers of the items above
③ (Criteria for price gouging and hoarding) Stockpiling more than 150% of the average sales volume in 2019 (at the time of investigation) for more than 5 days
* For enterprises incorporated in 2019: containing more than 150% of monthly average sales (from the date of incorporation to the date of investigation) for more than 5 days; for enterprises incorporated for less than 2 months: not releasing or selling the stock for more than 10 days from the date of receiving the stock
④ (Investigation and crackdown) establishment and operation of report centers (run by the MFDS and local governments) and cross-government control teams (run by the MFDS, FTC, NTS, and local governments)
⑤ (Enforcement period) From 00:00 Feb. 5, 2020 to Apr. 30, 2020


□ As the public notice has taken effect, anyone can report the acts of price gouging and hoarding to the MFDS and each local reporting center (Article 18 of the Price Stabilization Act).

○ The MFDS and each local government shall investigate on the breach of law once they receive the report or upon the perception of such breach. The MFDS, which is the department in charge of the matter, shall then issue a corrective order or law enforcement authorities (Article 9 of the Price Stabilization Act and Article 18 of its Enforcement Decree).

○ Those who engage in stockpiling shall face imprisonment for no more than two years or fine not exceeding 50 mil. won, pursuant to Article 26 of the Price Stabilization Act


□ The government shall never tolerate any act of market manipulation against public security and shall strictly crack down on such acts.

○ As of Jan. 31, 30 cross-governmental control teams (Ministry of Food and Drug Safety, Fair Trade Commission, National Tax Service, and local governments) composed of 120 staff have investigated 90 enterprises. The investigation has been extended to 180 enterprises following the participation of the Korean National Police Agency and Korea Customs Office in accordance with the implantation of the public notice.

○ Cornering and hoarding (Price Stabilization Act); unfair trade practices such as price-fixing (Monopoly Regulation and Fair Trade Act, Act on Consumer Protection in Electronic Commerce); excessive profiteering and tax evasion (Framework Act on National Taxes, etc.); exports in violation of the public notice on the prohibition of smuggling and price gouging and hoarding (Customs Act) shall be strictly cracked down on.