Some cigarette makers try discount tactic

Cigarette racks are empty in one of the convenient stores days before tobacco price hike took effect on Jan. 1. / Korea Times file

By Lee Min-hyung

Some foreign cigarette brands are trying to lure smokers with prices below the 4,500 won ($4.16) per pack average of their competitors.

This month, the prices of most cigarette brands jumped by 80 percent to 4,500 won from 2,500 won, forcing even die-hard smokers to think about quitting the habit.

However, British American Tobacco (BAT) Korea and Japan Tobacco International (JTI) Korea have bucked the trend.

BAT Korea announced it will increase the price of its Vogue cigarettes to 3,500 won from 2,300 won per pack as of Jan. 15, still well below the average price for smokers.

JTI Korea said the price of its Camel cigarettes will increase to 4,000 won from 2,500 won per pack the same day.

A representative of JTI Korea declined to comment on how the company was able to offer such a cheaper price. BAT Korea officials were not immediately available for comment.

The JTI representative said the company submitted its price change report to the Ministry of Finance and Strategy on Jan. 8. The adjustment will take effect today.

One domestic industry source, who declined to be named, said the foreign companies are likely offering their brands at a discounted price.

The tactic received mixed reactions.

One smoker said: “I will buy the cheapest brand. If it tastes bad, I will change to another brand.”

“I have my personal taste in cigarettes, so I think I’ll stick to my brand,” a woman in her late 30s said while smoking near Seoul City Hall on her lunch break. “The lower prices from the foreign brands could be an interesting marketing strategy, but that doesn’t affect me.”