Increased to 4,500 when out of stock
Plunging to 1500 due to reduced demand
At least 1,000 stores are ‘closed’
Businesses appeal to the government for emergency measures
| mask manufacturer A mask manufacturer in Goyang-si, Gyeonggi-do, stopped operations in May of last year due to a drop in demand for masks. Reporter Han Sang-bong |
“The inventory is piled up like a mountain. Even the mandatory wearing of indoor masks has been lifted, so the road ahead is bleak.”
Masks, which have been in short supply due to the Corona 19 incident, have significantly decreased in demand since last year, and related companies are going bankrupt.
According to the Korea Mask Industry Association and local governments on the 2nd, the number of domestic mask manufacturers increased from about 130 before the Corona 19 crisis in 2020 to 4,500 by 2021. However, recently it has plummeted to 1500. This means that over 3,000 businesses have closed in one year. Currently, about 1,000 of the remaining companies are open or closed, and about 500 companies are barely operating their production lines.
Domestic mask makers are showing a roller coaster situation because everyone jumped into the mask industry as demand at home and abroad surged due to Corona 19 in 2020. The government’s loosening of regulations and lowering entry barriers are also contributing to the surge in mask makers. As the situation persisted, where masks were scarce and could not be bought even with a higher price, small businesses as well as mid-sized companies started manufacturing masks. The device is simple and the investment cost is low, so textile companies and toilet paper manufacturers have replaced their lines with mask production.
However, the situation has reversed since last year. When the Corona 19 situation calmed down, demand for masks plummeted, and small businesses with weak financial and sales power began to close their doors. Businesses in operation are also experiencing serious management difficulties due to accumulation of inventory. At each factory, the masks produced last summer and fall are not sold and are piled up in stock.
Mask manufacturers are appealing for measures, saying that the domestic mask manufacturing ecosystem will collapse sooner or later if there is no urgent support from the government.
Company A in Paju, Gyeonggi-do sighed, saying, “For masks, which used to sell 500,000 to 1 million masks at 700 won each in 2020, wholesalers can only take them when they present a price much lower than the manufacturing cost of 170 won.”
A company in Pyeongtaek announced that it would sell 50 won per sheet in order to organize the company. Company B in Goyang, Gyeonggi Province, said, “When we were having difficulties due to a shortage of masks, we donated hundreds of thousands of masks to local governments free of charge. I want to ask what you will do if there is a shortage of masks,” he complained.
Company C in Jeonju City, North Jeolla Province complained, “The beak-type mask is still alive, but no one is looking for the straight-type mask, so even if you try to dispose of the machine, it is difficult to get the scrap metal price.”
Cho Dong-hee, director of the Korea Mask Industry Association, urged, “Currently, there are surplus masks, but as we do not know when an unexpected situation may erupt, the government should actively work to revive related companies, such as export support.”
Correspondents Lim Song-hak of Jeonju and Han Sang-bong of Goyang
2023-02-03 page 10