The Ministry of Health and Welfare said Thursday it planned to raise prices by 2,000 won ($1.90) from January.
South Korea’s tax ratio on cigarette prices is below the World Health Organization’s recommendation of 70 percent.
Taxes make up about 62 percent of the price of a pack of cigarettes. The rest is comprised of retail margin and production costs (39 percent), an excise tax on tobacco (25.6 percent), funds for national health promotion (14.2 percent), local education tax (12.8 percent), valued-added tax (9.1 percent), and funds for waste (0.3 percent), according to the ministry.
The price of cigarettes in Korea has been a flat 2,500 won per pack for the last decade since a price hike in 2004. The price is the lowest among OECD members considering consumer prices.
South Korea’s health authorities have been pushing for the past decade for a price increase on all cigarette brands in a bid to improve public health.
