SEOUL, Dec 26 (Korea Bizwire) – As the government raises the cigarette price by 80 percent effective on January 1 next year, most of the cigarette brands will be subject to a 2,000-won-a-pack increase to 4,500-4,700 won. But some of the brands sold by foreign tobacco companies that have not submitted a price change report with the government will maintain the current price level. Under the current tobacco business law, tobacco companies are supposed to charge newly raised prices at least six days after their price increase report has been approved by the government.
The Ministry of Strategy & Finance said on December 25 that the nation’s tobacco monopoly KT&G and Philip Morris International Korea have submitted reports that they would raise cigarette prices by 2,000 won per pack on the previous day. The companies gave up on increasing prices additionally due to higher taxes. Accordingly the prices for domestic brands like Esse Classic and Raison Blue will be raised to 4,500 won from 2,500 won while those of import brands such as Marlboro Gold and Parliament will be adjusted upward to 4,700 won from current 2,700 won.
Meanwhile, brands like Dunhill (British American Tobacco Korea) and Moebius and Camel (Japan Tobacco International Korea) will be sold at the current price for the time being as they were unable to make reports with the government in time.
By Sean Chung (email@example.com)