Busan Attorney Defense Case | Busan Attorney Obtains a Fine for an Employee of a Company That Hoarded Medical Masks During the COVID-19 Period

Let us examine the Price Stabilization Act together with a Busan attorney. First, the Price Stabilization Act is a law enacted to protect the interests of consumers by stabilizing prices and to contribute to the stability and development of the lives of the people and the national economy, and it is a law that prohibits hoarding.

At the time the client's incident occurred, the spread of COVID-19 led to a shortage of masks, which prompted the government to implement extraordinary measures.

With the exception of mask exports, a reporting system for the production and sale of medical masks was implemented.

The government warned of strong punishment for unlawful acts such as violating the emergency supply and demand adjustment measures on mask hoarding, manipulating trading volumes, and intentionally omitting reports.

The Busan attorney anticipated that, in this client's case, Article 32 of the Criminal Act could apply in addition to the violation of the Act on Price Stabilization.

Act on Price Stabilization
Article 6 (Emergency Supply and Demand Adjustment Measures) ① Where, due to reasons prescribed by Presidential Decree such as internal or external troubles, natural disasters, or an urgent fiscal or economic crisis, prices rise sharply and the supply of goods becomes insufficient, threatening to harm the stability of the lives of the people and to significantly impede the smooth operation of the national economy, the Government may, with respect to a business operator of the relevant goods or a person whose business is the import, export, transport, or storage thereof, and as prescribed by Presidential Decree, set a period not exceeding five months and take any of the measures falling under the following subparagraphs (hereinafter referred to as “emergency supply and demand adjustment measures”).

1. Instructions concerning the establishment, implementation, and modification of production plans
2. Instructions concerning supply and release from storage
3. Instructions concerning the adjustment of imports and exports
4. Instructions concerning transport, storage, or transfer
5. Instructions concerning the reorganization of distribution channels, the simplification of distribution stages, and the improvement of distribution facilities

② After taking emergency supply and demand adjustment measures under paragraph (1), where the Government finds that the grounds for taking such measures have ceased to exist, it shall lift them without delay.
③ Where the Government intends to take emergency supply and demand adjustment measures under paragraph (1), it shall undergo deliberation by the State Council and obtain the approval of the President. The same shall apply to the lifting of measures under paragraph (2).

Article 25 (Penalty Provisions) ① A person who violates the emergency supply and demand adjustment measures under Article 6 (1) shall be punished by imprisonment for not more than three years or a fine of not more than 100 million won.
② The imprisonment and the fine under paragraph (1) may be imposed concurrently.

Criminal Act
Article 32 (Accessory) ①A person who aids and abets the crime of another shall be punished as an accessory.
②The punishment of an accessory shall be mitigated below that of the principal offender.

Article 55 (Statutory Mitigation) ①Statutory mitigation shall be as follows.
1. When the death penalty is to be mitigated, it shall be reduced to imprisonment for life or imprisonment, with or without labor, for not less than 20 years and not more than 50 years.
2. When imprisonment for life with labor or imprisonment for life without labor is to be mitigated, it shall be reduced to imprisonment, with or without labor, for not less than 10 years and not more than 50 years.
3. When imprisonment with labor or imprisonment without labor for a definite term is to be mitigated, it shall be reduced to one half of the term thereof.
4. When disqualification is to be mitigated, it shall be reduced to suspension of qualifications for not less than seven years.
5. When suspension of qualifications is to be mitigated, it shall be reduced to one half of the term thereof.
6. When a fine is to be mitigated, it shall be reduced to one half of the maximum amount thereof.
7. When detention is to be mitigated, it shall be reduced to one half of the maximum term thereof.
8. When a minor fine is to be mitigated, it shall be reduced to one half of the maximum amount thereof.
②Where there are several grounds for statutory mitigation, mitigation may be applied repeatedly.

The Busan attorney stated that the defendant had been entirely unaware of whether reporting of sales related to mask distribution was required.

The Busan attorney further emphasized that the defendant deeply regretted having broken the law and sold masks during the COVID-19 period of mask hoarding, when public anxiety was high.

The Busan attorney stated that the defendant acknowledged having made it easier for another defendant to sell masks.

The attorney then requested that the court take into account that the defendant, who was an employee, had followed the instructions of a superior.