Cigarette tax hikes in South Korea only curbed smoking briefly, with sales rebounding to normal levels within four months, a new study found. The Korea Institute for Health and Social Affairs reported yesterday (August 18) that demand for cigarettes is “highly inelastic,” with a 10% price rise cutting consumption by just 4.2–4.4%. Researchers said non-price measures like warning labels or e-cigarettes had little measurable impact.
“Sudden hikes result in hoarding and brief behavioral change, but smokers adapt,” the report said. “Incremental increases aligned with inflation are more likely to gradually shift consumption patterns and reinforce anti-smoking behavior.”