Tobacco Induced Diseases (May 2018)

Social phenomena following the tobacco tax increase in South Korea: Lessons and policy implications

  • Myung-Bae Park,
  • Eun W. Nam,
  • Hye L. Lee,
  • Kyoung Soo Hong,
  • Yumi Oh

DOI
https://doi.org/10.18332/tid/84891
Journal volume & issue
Vol. 16, no. May

Abstract

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Introduction This paper reviews the trial and error occurring before an increase in cigarette prices and the subsequent effects of this in South Korea. In addition, we introduce the social phenomena that occur as a result of an increase in tobacco tax, and propose effective strategies and principles that need to be taken into account before increasing cigarette prices. Material and Methods We compared changes to smoking rates before and after the increase in cigarette prices. To investigate the changes that occurred before South Korea’s increase in tobacco tax, we first analysed the state of cigarette consumption and then the change in smoking rates. Results The increase in cigarette prices caused an immediate backlash from smokers, particularly low-income groups and those claiming tax inequality. In particular, the sales of electronic nicotine delivery systems (ENDS) increased dramatically and the lower price marketing of tobacco companies led to short-term market share increases. As expected, smoking rates in South Korea decreased. However, because the price increase was not sufficient to encourage widespread smoking cessation, the decrease in smoking rates was not significant. Conclusions Because the primary objective of the cigarette pricing policy was not designed to promote public health, by reducing smoking rates, it received public criticism. To avoid public criticism, the government must emphasize and convince the public that the primary objective of increasing cigarette prices is to protect public health through a decline in smoking rates. Ideally, health authorities should play a leading role in formulating tobacco tax policy.

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