Local cigarette monopoly

Only KT&G cigarettes are being sold at highway service stations throughout South Korea despite the country’s antitrust watchdog’s earlier order to correct this practice, according to a Yonhap News Agency story quoting ‘industry sources’.

Last year, the Fair Trade Commission (FTC) imposed a 2.5 billion won (US$2.19 million) fine on KT&G for encouraging retailers not to sell cigarettes produced by foreign companies.

KT&G was said to have offered cigarettes at lower prices to retailers at rest stops across the country if they sold its products exclusively.

Despite the FTC fine, only three out of 239 highway rest areas sell foreign cigarette brands such as Marlboro or Dunhill, the sources said.

“Nothing has been changed despite the FTC’s order for KT&G’s anti-competitive behavior more than a year ago,” said an industry source on the customary condition of anonymity.