By Timothy S. Donahue
Top Takeaways:
- Policy signal: South Korea affirmed its plans to increase cigarette taxes to align with WHO levels, but stated there will be no immediate action.
- Price impact: A full adjustment could raise pack prices to around 10,000 won from the current 4,500 won.
- Tax reality: Cigarettes already carry about 74% in taxes, just below the WHO’s 75% benchmark.
South Korea is once again hinting at raising cigarette taxes—but is hitting the pause button on taking action.
The Ministry of Health and Welfare stated it is not currently considering a price increase, even though its newly approved 6th National Health Promotion Comprehensive Plan (2026–2030) repeats a long-term goal of raising tobacco taxes closer to global standards.
“Raising cigarette prices… are issues that require sufficient social discussion,” the ministry said, adding that any move would require broader public input due to its economic impact.
However, the direction remains clear. The plan proposes raising the National Health Promotion levy on cigarettes to better align with guidance from the World Health Organization under the Framework Convention on Tobacco Control, which advises that taxes make up at least 75% of retail cigarette prices.
South Korea is already close. Of the current US$3.40 per pack price, about $2.50—roughly 73.8%—is composed of taxes and levies, including tobacco consumption tax, health promotion charges, and other duties.
Bridging that last gap could significantly affect the price. Officials acknowledged that aligning with OECD averages could increase cigarette prices to around 10,000 won per pack, more than double the current levels.
That kind of move would position South Korea among higher-tax markets worldwide and could speed up declines in smoking rates—but also raise worries about illegal trade and public backlash. The ministry emphasized that the proposal is not new, but part of a longer-term policy framework first outlined in its previous 10-year plan.
South Korea announced earlier this month that it will regulate synthetic nicotine e-cigarettes under traditional tobacco laws starting April 24, closing a loophole that previously exempted these products from regulation.
Under the revised Tobacco Business Act, synthetic nicotine is treated the same as traditional tobacco, banning its use in smoke-free zones with fines up to 100,000 won ($69), requiring sellers to register as authorized retailers, and prohibiting online sales. The law also targets youth-oriented marketing by limiting flavor descriptions and packaging imagery, with violations resulting in fines of up to 5 million won ($3,472).
