Sugar tax on cola? Debate heats up in Korea over introducing a levy on excessive sugar use

Children’s beverages are displayed at a supermarket in Seoul in this file photo. Hankook Ilbo file

A proposal to introduce a so-called “sugar tax” on products with excessive sugar content is once again gaining traction in South Korea. Advocates argue that such a policy is needed to curb rising rates of obesity, diabetes, and other chronic diseases linked to sugar overconsumption. The goal is to reduce the social and economic costs of these health risks and use the tax revenue to fund public health initiatives, particularly for low-income communities.

At the forefront of the debate is Yun Young-ho, head of the Health Culture Project at Seoul National University and a professor of family medicine at the university’s College of Medicine. Yun hosted a “Sugar Overuse Tax Forum” at the National Assembly Sept. 24, where he highlighted the urgent need for a sugar tax.

“One in three adolescents in Korea consumes more sugar than the World Health Organization’s (WHO) recommended daily limit of 50 grams for adults,” Yun said. “Added sugars in soft drinks contribute to cavities, obesity, diabetes, heart attacks, strokes, and cancer.”

Because of these risks, WHO now recommends limiting daily sugar intake to less than 25 grams for optimal health.

57 percent of the global population already pays sugar tax

Sugar taxes are already in place in more than 120 countries, representing 57 percent of the global population, following WHO’s recommendation in 2016. Italy became the latest to introduce the measure on Jan. 1 this year.

The results have been striking. In Mexico, obesity rates fell by 2.5 percent in the 10 years since the tax was introduced, with an estimated 200,000 fewer diabetes cases and 20,000 fewer strokes and heart attacks. In the U.K., sugar-sweetened beverage sales dropped by 33 percent after the tax was introduced in 2018, while the food industry cut sugar content per product by an average of 46 percent. The British government expects to save about 8.12 trillion won ($5.9 billion) in health-related costs over 25 years.

While “zero-sugar” drinks with artificial sweeteners have become popular alternatives, Yun warned they are not necessarily safer. “WHO reports that artificial sweeteners are associated with increased risks of obesity, type 3 diabetes, and cardiovascular disease,” he said. “Three out of four countries with a sugar tax also apply it to diet beverages.”

gettyimagesbank

Majority support sugar risk warnings on drinks

In South Korea, former Democratic Party lawmaker Kang Byung-won introduced a 2021 bill to amend the National Health Promotion Act with a sugar tax provision. The bill failed amid strong tax resistance, but public opinion has since shifted.

A survey of 1,000 people conducted by Korea Research in March on behalf of Seoul National University’s Health Culture Project found that 58.9 percent supported the introduction of a sugar tax. Moreover, 82.3 percent supported placing warning labels about sugar content and associated health risks on beverage packaging, similar to the graphic warnings on cigarette packs.

“To address worsening health inequalities in our society, we should consider sugar tax revenue as a new source of funding,” Yun said. “We need a social consensus and detailed framework on the scope, purpose, and implementation of the tax.”

Critics cite inflation, regressive burden, and industry pushback

Opponents, however, raise significant concerns about the proposed sugar tax. One major argument is that higher beverage prices resulting from the tax would ultimately be passed on to consumers, disproportionately burdening low-income households that are more sensitive to price changes. Critics also point out that, as an indirect tax, a sugar levy would apply the same rate regardless of income level, meaning lower-income consumers would bear a heavier relative burden.

The food and beverage industry has voiced strong objections as well, calling the proposal a form of punitive taxation targeting specific sectors. When the 2021 bill was introduced, it drew backlash for “taxing basic necessities,” with opponents warning it could harm both businesses and consumers.

The Ministry of Economy and Finance said the issue requires thorough debate and deliberation in the National Assembly. It does not plan to introduce a government-led bill at this time, citing a lack of public consensus. “Even if a sugar tax bill is introduced, it is more likely to come from lawmakers rather than as a government bill,” a ministry official said.

This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI system and edited by The Korea Times.