Discussion of raising cigarette prices is resurfacing after Minister Jung Eun-kyeong of the Ministry of Health and Welfare noted the need to review tobacco price policy. Polls also show that support for a cigarette tax hike is dominant. Academia is also saying gradual and regular increases that reflect inflation are needed.
Korea's cigarette price has stayed at an average of 4,500 won for 11 years after a single increase in 2015. Compared with major advanced countries, it is about half. The government included in the Sixth National Health Promotion Comprehensive Plan (2026–2030), released early this year, a plan to raise cigarette prices by increasing the health promotion levy to the average level of countries in the Organization for Economic Cooperation and Development (OECD) as announced by the World Health Organization (WHO).
According to the government and related industries on the 19th, the Minister said at a press briefing on the 11th that there is a need to respond to e-cigarettes, flavored cigarettes, and synthetic nicotine, noting, "It is a situation where we must mobilize both price and non-price policies." She added, "Compared with major OECD member countries, there are parts where Korea's cigarette prices are still low."
The Minister said, "The National Health Promotion Comprehensive Plan includes a review of raising the health promotion levy, but it has not yet been reviewed as a specific policy," adding, "Because price policy is also linked to an increase in the public burden, it is necessary to sufficiently hear public opinion and social views."
At home, cigarette prices were raised from an average of 2,500 won per pack to an average of 4,500 won in 2015 and have been frozen for 11 years. During the same period, consumer prices rose about 20%, lowering the real price of cigarettes. In contrast, as of 2023 the OECD average cigarette price was around 9,869 won, more than double the domestic price.
As the Sixth National Health Promotion Comprehensive Plan finalized in March included content related to raising cigarette prices, some observers say the current 4,500 won per pack could rise in the mid- to long term to the 10,000-won range, the OECD average.
The government says it has not yet prepared a specific increase plan. The Ministry of Health and Welfare said in an explanatory press release on the 14th, "Raising cigarette prices is an issue that requires sufficient social debate, and it is not currently under review," adding, "If necessary, we will solicit opinions from relevant experts and society." The intent is that public opinion gathering and social discussion must come first because price increases are directly tied to the public burden.
However, public opinion appears relatively favorable toward raising cigarette prices. According to a nationwide survey conducted by Hankook Research on May 31 for World No Tobacco Day, 63%—more than 6 out of 10 people—supported raising cigarette taxes. Among respondents, 79% picked increasing cigarette prices as the most effective policy to lower smoking rates, and 66% said a cigarette tax hike would effectively reduce smoking rates.
In particular, regarding the plan to raise the price of a pack to 10,000 won, the OECD average, 53%—more than half—preferred "first increasing it to around 6,000 won to reflect inflation and then raising it gradually." It is interpreted as reflecting the view that social acceptance should be secured through gradual price adjustments rather than unconditional price freezes.
A backdrop to the renewed push for price hikes is the increase in social and economic costs caused by smoking. According to the Korea Disease Control and Prevention Agency's "Study on smoking-attributable deaths and social and economic burden," the socio-economic cost from direct smoking rose for five consecutive years from 12.1913 trillion won in 2019 to 14.9517 trillion won in 2023. Socio-economic cost is the sum of direct costs such as medical expenses and transportation costs arising from smoking-related diseases, and indirect costs such as productivity losses due to premature death and medical use.
Academia is also arguing that it is no longer possible to delay discussion of cigarette price hikes. Heo Won, a professor at the University of Seoul School of Law, said at a Korean Local Tax Association seminar on the 11th, "The current cigarette price has stayed at 4,500 won, raised in 2015, for more than 10 years," adding, "Considering inflation over the period, the real price of cigarettes can be seen as having fallen to about 3,000 won."
In particular, because cigarette taxes serve as a corrective tax that reflects social costs such as medical expenses and productivity losses caused by smoking into the price to curb smoking, some say real price declines should not be left unaddressed. Heo said, "The core of the cigarette tax is its corrective-tax effect, but achieving the policy goal of curbing smoking is becoming more difficult," adding, "Through regular, flat increases every one to two years, we must defend against declines in the real price and maintain the original purpose of the corrective tax."