"A War on Hoarding and Stockpiling"... Government to Impose Fines Exceeding Illegal Gains [Government Steps Up to Tackle Prices]

The government will fully strengthen its response system against hoarding and stockpiling. Moving beyond the current approach, which has largely focused on detection and criminal punishment, it plans to overhaul the system so that stockpiled goods can be forced into circulation and illegal profits can be recovered. In particular, it will also pursue a plan to impose administrative fines that exceed the illicit gains made through hoarding.
At the 9th meeting of the Special Management Task Force for Consumer Prices, held at Government Complex Seoul on the 21st, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said, "The government will quickly release consumer goods facing supply concerns into the market and thoroughly recover illegal gains made through hoarding and stockpiling." He added, "We will revise the Price Stabilization Act to strengthen the effectiveness of price-stabilization measures, including the ban on hoarding," and said, "We will immediately begin revising the enforcement decree and push ahead with legal revisions as quickly as possible."
Under the current Price Stabilization Act, violations of the ban on hoarding or emergency supply and demand adjustment measures are punishable by up to three years in prison or a fine of up to 100 million won. However, concerns have repeatedly been raised that, in practice, there is no effective way to force companies to release goods into the market even after they are caught. Even when the government issues corrective orders, supply shortages can continue if companies simply refuse to comply.
To address this, the government has decided to introduce new "disposal orders" and "enforcement fines." Going forward, if stockpiled goods are discovered, the government will be able to order that the goods be sold or disposed of within a set period. If the order is ignored, an enforcement fine will be imposed.
A new administrative fine system will also be introduced. The government believes that simple fines have limited deterrent effect, since most hoarding is carried out to profit from price spikes. The exact level of the fines will be determined during the legislative revision process, but the government is considering monetary penalties that exceed the amount of illegal gains. The goal is to ensure that no illicit profit is left behind.
A reward system for whistleblowers will also be introduced. Those who report violations of price ceilings, emergency supply and demand adjustment measures, or the ban on hoarding will receive rewards based on their level of contribution. Kang Giryong, vice minister for economy and finance, said in a preliminary briefing on the 20th, "We are reviewing an incentive system that is effective enough to expose illegal activity at its root."
The procedures for handling seized goods will also be revised. At present, even if hoarded goods are confiscated, they often cannot be released into the market until court proceedings and public auction procedures are completed. To respond more quickly to supply shortages, the government will establish special provisions allowing immediate sale at the seizure stage when urgent supply needs are recognized. It also plans to delegate anti-hoarding enforcement authority during customs clearance to the commissioner of the Korea Customs Service (KCS) through revisions to the enforcement decree, in order to speed up initial response.
hippo@fnnews.com Kim Chan-mi Reporter