Korea looking to raise cigarette prices

South Korea’s Health and Welfare Minister, Moon Hyung-pyo, said yesterday that he hoped to see cigarette prices nearly doubled during the next six years so as to reduce the country’s smoking rate, according to a story in The Korea Herald.

Moon said prices should be raised to at least WON3,300 ($3.24) per pack immediately, partly to reflect the general rise in consumer prices, and to WON4,500 by 2020.

The average price of cigarettes among OECD (Organization for Economic Co-operation and Development) countries is $6.40 per pack, but more than 70 percent of the cigarettes sold in South Korea are priced at $2.46 (WON2,500) per pack or less.

The most recent price increase on cigarettes – WON500 per pack – was brought in during 2004.

“I believe we must actively work to cut the country’s smoking rate if we believe that the high smoking rate is becoming a serious issue,” Moon said.

“The most effective policy is to raise the tobacco tax,” he said, noting that the country’s overall smoking rate had dropped by about 15 percent when the government raised cigarette prices in 2004.

This is not a new story. In the middle of June, the Herald reported that the health ministry was planning to raise cigarette prices.

The June announcement came after the country received a notice from the World Health Organization that Korea should raise cigarette prices by 50 percent.