Possible Cigarette Price Increase in South Korea Due to Legal Changes
Creatrip Team
a year ago
Cigarette prices in South Korea have remained unchanged at 4500 KRW for 10 years, despite rising costs like labor and raw materials. Recent changes in corporate law may increase shareholder pressure to raise prices. South Korea's cigarette prices are about half the OECD average, supporting the potential hike. The government may also raise cigarette taxes to reach specific health goals, as a price increase has proven effective in reducing consumption. KT&G shares have surged following these developments. Due to the high tax component, raising cigarette taxes inevitably affects their retail price.
