By Kang Seung-woo
Spending on cigarettes by those in the low-income bracket was more than double that of the high-income group last year, the central bank and the statistical office said Thursday.
However, amid soaring consumer prices, and with some tobacco producers raise prices, by some 200 won from the previous 2,500 won, tobacco is likely to place a heavy burden on the low-income group.
According to the Bank of Korea (BOK) and Statistics Korea, the bottom 20 percent in terms of income spent 13,766 won ($12.77) per month in 2010, accounting for 1.2 percent of its overall expenditures of 1.15 million won.
On the other hand, the top 20 percent of the table spent 18,985 won out of 3.58 million won, taking just 0.5 percent.
As for the national average, each household spent 2.28 million won on average last year, with 18,501 won on cigarettes, or 0.8 percent of the total expenditure.
In addition, cigarettes outweighed liquor in terms of the spending ratio.
A total of 13.7 trillion won was spent on the two items last year, but per-household expenditure on liquor stood at 9,021 won against 18,501 won for smokes, a ratio of 0.4 and 0.8 percent, respectively of the total expenditure.
Particularly, the poorest group’s average ratio of liquor consumption tallied 0.5 percent, way lower than the 1.2 percent for cigarettes.
“It is common in the world that those who belong to the low-income bracket are out of shape. The government should step up efforts to improve their health,” said an official of the Korea Institute for Health and Social Affairs (KIHASA).
“Boosting prices for cigarettes can contribute to reducing the smoking rate to an extent, but it cannot be the fundamental solution. The government needs to come up with expanded measures to encourage people not to smoke.”
Meanwhile, a recent price hike in cigarettes is expected to increase the burden on smokers.
To grapple with the rising prices of raw materials, the price of cigarettes has increased by 200 won.
“Some of the taxes are indirect, such as that for education, so the price increase will get the monkey on low-income smokers’ back,” said an official of the Korea Smoker’s Association.
“Considering the aftermath following the hike, the tobacco firms need to elucidate why they raise prices.”