HNB prices to rise in Korea

The South Korean unit of Philip Morris International said on Friday it would increase the price of its heat-not-burn (HNB) products, according to a story in The Korea Herald.

The per-pack retail price of HEETS, the consumable element of its HNB device, IQOS, will rise to 4,500 won ($4.13) starting on Wednesday, a 4.65 percent increase from the current 4,300 won.

The price rise was in response to a recent increase in the consumption tax imposed on HNB products and an expected increase in other levies, the company said.

At the same time, Philip Morris Korea said it would expand its plant in Yangsan, just north of the port of Busan, to manufacture HEETS.

The expansion will involve an investment of $420 million and the recruitment of an additional 700 workers.

Currently, the Yangsan plant manufactures Marlboro and other conventional tobacco brands for domestic sales and exports.