Possibility of Increasing Cigarette Tax in South Korea

Regulations by 2FIRSTS.ai
Jan.17.2024
Possibility of Increasing Cigarette Tax in South Korea
South Korea considers raising cigarette taxes as prices have remained stagnant for 9 years, prompting widespread discussions.

According to recent reports from South Korean media, cigarette prices in the country have remained stagnant at 4,500 Korean won (approximately 27 Chinese yuan) for nine consecutive years, sparking widespread discussions on increasing tobacco taxes.

 

Despite Deputy Prime Minister and Minister of Economy and Finance, Zhao Sang-hun, stating at a personnel hearing recently that "there are no plans to increase it," it appears that the current cigarette prices are actually trending downward when compared to the soaring inflation. Therefore, it seems that an increase in tobacco tax is only a matter of time.

 

In addition, due to the rising costs, the profits of the cigarette industry are also shrinking, hence the possibility of increasing tobacco taxes is quite high. In this regard, the academic community has proposed a plan to gradually increase tobacco taxes each year, aiming to raise cigarette prices to a range of 10,000 to 20,000 Korean won per pack by 2030.

 

In the debate on the increase in tobacco taxes, some arguments suggest that a price of 10,000 Korean won is too high, and 8,000 Korean won is an acceptable level, which also aligns with the average cigarette prices in OECD countries.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Product | IVG Launches NEXiO Prefilled Pod System, Expanding Beyond Disposable Vapes
Product | IVG Launches NEXiO Prefilled Pod System, Expanding Beyond Disposable Vapes
UK vape brand IVG has launched the NEXiO reusable prefilled pod system, expanding its product portfolio beyond disposable vape products. The device features a 1,000mAh rechargeable battery, prefilled pods with a refill reservoir structure and a claimed capacity of up to 10,000 puffs. Officially launched in the UK on July 9, 2026, NEXiO debuted with 17 flavor options, reflecting IVG’s move into reusable pod formats.
Aug.19
PMI Expands Colorado Investment to $1.2 Billion to Boost ZYN Nicotine Pouch Production
PMI Expands Colorado Investment to $1.2 Billion to Boost ZYN Nicotine Pouch Production
Philip Morris International (PMI) is expanding its investment in its Golden, Colorado campus, bringing total investment to approximately $1.2 billion to support its smoke-free products business. The investment will strengthen PMI’s research, production and innovation capabilities in smoke-free products. As one of the world’s largest tobacco companies, PMI has continued advancing its “Smoke-Free Future” strategy through heated tobacco, oral nicotine and other reduced-risk product categories.
PMI
Jul.28
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
KT&G announced on Aug. 13, 2026, that it has opened “lil Archive,” a brand exhibition space in Seoul showcasing the evolution, technology platforms and future direction of its heated tobacco brand lil since its launch in 2017. KT&G said lil now spans three major platforms — lil SOLID, lil HYBRID and lil AIBLE — with more than 30 dedicated consumables, and held a 48% share of South Korea's heated tobacco market in the second quarter of 2026. The opening comes as lil enters its 10th year, with KT&G continuing to position the brand for expansion beyond its domestic market.
Aug.14
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Product | PMI Japan Expands ZYN by IQOS Strength Portfolio With Strong Series, Increasing Lineup to 12 Products
Philip Morris Japan (PMJ) has expanded the ZYN by IQOS oral tobacco pouch portfolio in Japan with four new ZYN Strong products, adding a third intensity level alongside the existing Low and Medium ranges. The Strong series first entered selected duty-free channels in Japan on July 1, 2026, before expanding to IQOS stores, the ZYN Online Store and selected tobacco retailers from August 18. The expansion increases the Japanese ZYN by IQOS lineup from eight to 12 products.
Aug.20
China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan Industrial Co., Ltd. has filed a patent application for a cellulose-free scaffold material for nicotine pouches, proposing a combination of bioceramic material, polydextrose and sugar alcohols to replace conventional microcrystalline cellulose and cellulose derivatives. The filing aims to address issues including powdery mouthfeel, residue and limited release control, while also reducing reliance on existing cellulose-based patent portfolios. In patent examples, one fast-release formulation reached a nicotine release rate of 50% at 10 minutes and more than 90% at 20 minutes.
Sep.02
Australia’s One Nation Proposes 75% Tobacco Tax Cut, Says Lower Prices Could Hit Illicit Market
Australia’s One Nation Proposes 75% Tobacco Tax Cut, Says Lower Prices Could Hit Illicit Market
Australia’s One Nation party has proposed cutting tobacco excise by 75%, arguing that lower legal cigarette prices could narrow the gap with illicit tobacco and reduce demand for black-market products. The proposal comes as Australia continues expanding enforcement against illicit tobacco supply chains through border controls, retail inspections and organised-crime investigations. Supporters argue high taxes have contributed to illicit-market growth, while opponents warn that lower tobacco prices could undermine public-health goals. The proposal is a party policy position and has not been adopted by the Australian government.
Aug.18