Cigarette Prices to Rise 10 Percent by End of the Year

Cigarette prices are expected to rise 10 percent more than the present price by the end of the year.

``Most recently, the Democratic Party, Ministry of Finance and Economy, Ministry of Planning and Budget, Ministry of Health and Welfare and other related offices have tentatively decided to raise the price of cigarette tax from 2 won per pack to 150 won by levying a health tax. The regular session of the National Assembly in September is planning to pass a National Health Improvement Law.`` said a Ministry of Finance and Economy official on August 26.

He added, ``If you take into consideration things such as the health tax raising the price to 150 won and the value added tax, a pack of cigarettes will cost up to 170 won and increase the price over 10 percent. The new price will go into effect around the end of the year or January of next year at the latest.`` In this case, the cigarette and ginseng production company, `This` will raise its price from the current 1300 won to 1468 won, a 12.9 percent increase.

However, foreign cigarettes are generally more expensive than domestic Korean cigarettes. Foreign companies are looking for ways to dominate the Korean market and are not planning for the time to increase the current price.

yhchoi65@donga.com