Korean Cigarette Price Rise Fallout: Smokers Won’t Buy Expensive Tobacco
SEOUL, January 3 (Korea Bizwire) – On the first day of 2015, when the tobacco price hike was implemented across the country, overall sales of national brand cigarettes were remarkably slow, while tobacco from major international brands such as Dunhill or Camel s’ turned out to be very popular, as some foreign brands of tobacco are not. still subject to price increases.
While Seoul increased tobacco prices by 80% as of January 1 this year, most brands were subject to an increase of 2,000 won per packet, a significant charge for regular smokers in Korea where a packet of cigarettes is approximately equivalent in price to that of a simple lunch in many restaurants.
As Korea Bizwire reported on December 26 that some of the brands sold by foreign tobacco companies that had not submitted a price change report to the government will hold the previous price level for some time now. Under the current Tobacco Trade Law, tobacco companies are expected to charge newly increased prices at least six days after their government price increase report is approved.
The Strategy and Finance Ministry said on December 25 that the national tobacco monopoly KT&G and Philip Morris International Korea said they would increase the price of cigarettes by 2,000 won per pack the day before.
By John Choi ([email protected])