Prices of Cigarettes on the Rise
D-Bo , Sept. 14, 2014, 9:43 p.m.
The Korean government plans to raise cigarette prices to W4,500 in January and then every time consumer prices rise five percent (US$1=W1,035). It said it will hike cigarette prices "in line with inflation" when it announced last week they would go up from W2,500 a pack.
According to a government official, "We're looking into raising cigarette prices in synch with inflation or when consumer price increases over several years by a total of five percent. Given that inflation is in the one-percent range at present, cigarette prices could rise every two to three or four to five years." The price hikes will take the form of an increase in tobacco taxes.