Cigarette Prices To Double

The South Korean government plans to nearly double cigarette prices starting in January from 2500 won to 4500 won per pack. This is part of an effort to reduce the country's high smoking rate of 44% for adult males, which is above the OECD average of 25%. Health officials believe the price hike could lower smoking rates by 15% and reduce overall tobacco sales by 34%. However, some politicians oppose the large price increase, arguing it unfairly targets low-income smokers. Additional measures will include picture warnings on packs and bans on tobacco ads by retailers.

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Cigarette Prices To Double

Uploaded by

Ivan Campuzano

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Government to Nearly Double Cigarette Prices Next Year

1. Warmup

A. What are your thoughts about smoking?  A harmless habit?  Disgusting?  A waste of money? A fun thing to
do?

B.Should the government tax cigarettes more than the regular rate for things like food or drinks?

2. Reading time

A.  What is the government’s proposal?

B. What reasons do they have for it?

C. Who supports the price hike?  Who doesn’t support it?  Who else would be happy/unhappy about it?

D. Is Korea’s smoking rate high compared to other countries?

3. Discussion Time

A. Is it ethical to raise taxes on things like cigarettes or alcohol and use the money to fund things like education
or healthcare?

B. Will this move actually reduce the smoking rate in Korea as much as Moon Hyung Po says?  2000 won
doesn’t seem like that much money these days.

C. Do you think this price increase unfairly targets low incomeearners?

D. Do you think warnings on cigarette packages will have any effect?

E. Should the government be involved in trying to reduce the smoking rate, or not?

F. What about women smoking in Korea?  Why is there such a social stigma against it?  Is this fair?

4. Debate Time

Side A: The price of cigarettes in Korea should remain at 2500 Won

Side B: The government should raise the price of cigarettes to 4500 Won.

Government to Nearly Double Cigarette Prices Next Year
http://www.koreatimes.co.kr/www/news/nation/2014/09/113_164376.html

The government announced that it plans to nearly double cigarette prices starting in January as part of
efforts to cut the country's high smoking rate that will also include a ban on tobacco advertisements by large
retailers.

"The government will seek to raise cigarette prices by 2,000 won (US$1.93) per pack while also introducing a
pricing system where cigarette prices will be pegged to other consumer prices," Health and Welfare Minister
Moon Hyungpyo said.

The plan may undergo changes during parliamentary review as many politicians, including ruling party
lawmakers, have already expressed their opposition against such a large price increase. Shortly after the
governmentruling party consultations, the main opposition New Politics Alliance for Democracy labeled the
price hike a "deceitful move" aimed at filling the revenue shortfall by emptying the pockets of those in the low
income bracket, whose smoking rate is higher than among other income groups.

A 2,000won hike will mark an 80 percent increase from the current average price of 2,500 won per pack.

In further efforts to bring down the smoking population, the government will require cigarette manufacturers
to print picturebased warnings on tobacco products and prohibit promotions and advertisements of tobacco
by manufacturers and retailers, including convenience stores.

The last price hike for cigarettes was in 2004 when it was raised by 500 won. Moon said the proposed price
hike will significantly reduce the country's smoking rate, noting that the last price hike helped cut the smoking
rate by 15 percent.

"The government will work to lower the smoking rate of adult males to 29 percent by 2020," he said. The
health ministry's data show that the smoking rate for South Korean males is currently around 44 percent,
above the average 25 percent for the 34 member countries of the OECD. The ministry said the proposed
price hike was expected to lead to a 34 percent drop in overall sales of tobacco products, and that the price
hike, coming mostly from a tax increase, will likely generate an additional 2.8 trillion won in tax revenues.