The market share of KT&G, Korea's tobacco monopoly, has fallen below the 50-percent level since the government raised the cigarette price in early January this year. This is the first time in 29 years to see home-made cigarette market share overtaken by foreign brands since 1986 when Marlboro debuted the Korean market.
According to data released by a convenience store franchiser based on a survey on its affiliated stores from January 1 to 29, the share of KT&G was 43.2 percent. The market share of foreign brands was 56.8 percent, which was claimed by Philip Morris (24.4%), British American Tobacco (23.4%), Japan Tobacco International (9.0%).
The main reason KT&G suffered a setback has to do with the fact that foreign cigarette suppliers raised their prices less steeply than KT&G, which is selling its major brands like Esse and Raison at 4,500 won a pack after the government jacked up per-pack taxes by 2,000 won. In contrast, British American Tobacco Korea raised the price of its Vogue by 1,200 won to 3,500 won on January 15. Japan Tobacco International also raised its price for Camel by 1,300 won to 4,000 won.
Source: The Korea Economic Daily
