Korea to raise cigarette prices by 2,000 won from Jan. 2015
The government announced Thursday that it will hike cigarette prices by 2,000 won ($1.95) a pack from January next year in an effort to reduce the country’s notoriously high smoking rate.
The majority of cigarettes in Korea are currently priced at 2,500 won per pack. If the government successfully pushes its plan, which requires parliamentary approval, the price of an average pack of cigarettes will hike to 4,500 won.
“The smoking rate for Korean males is 44 percent, the second highest among the Organization for Economic Cooperation Development (OECD) countries. Still, cigarettes are more than twice cheaper here than the OECD average of 6,500 won,” Health and Welfare Minister Moon Hyung-pyo said. “The government will also introduce a pricing system where tobacco prices will be pegged to other consumer prices.”
The government raised the average price of a pack of cigarettes from 1,800 won to 2,000 won in 2002 and raised it by another 500 won to 2,500 won in 2005.
A recent survey by Gallup Korea found that 56 percent of respondents support a 2,000 won increase in tobacco tax, while 35 percent are opposed to it and 7 percent declined to comment.
The majority of cigarettes in Korea are currently priced at 2,500 won per pack. If the government successfully pushes its plan, which requires parliamentary approval, the price of an average pack of cigarettes will hike to 4,500 won.
“The smoking rate for Korean males is 44 percent, the second highest among the Organization for Economic Cooperation Development (OECD) countries. Still, cigarettes are more than twice cheaper here than the OECD average of 6,500 won,” Health and Welfare Minister Moon Hyung-pyo said. “The government will also introduce a pricing system where tobacco prices will be pegged to other consumer prices.”
The government raised the average price of a pack of cigarettes from 1,800 won to 2,000 won in 2002 and raised it by another 500 won to 2,500 won in 2005.
A recent survey by Gallup Korea found that 56 percent of respondents support a 2,000 won increase in tobacco tax, while 35 percent are opposed to it and 7 percent declined to comment.
Meanwhile, the government also plans to impose a ban on tobacco advertisements by large retailers. All cigarette manufacturers will also be required to print picture-based warnings on tobacco products.
A senior health ministry official said the government is mulling imposing a fine of up to 50 million won or a prison term of 2 years for those excessively stocking up on cigarettes.
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