South Korea holding the line on huge price increases

In the face of widespread opposition, a senior politician in South Korea on Monday took a step back from his efforts to introduce low-price cigarettes, according to a story in The Korea Times.

Ruling Saenuri Party floor leader, Representative Yoo Seong-min, had instructed the party’s policy committee on February 17 to review ways to introduce cheap, low-quality tobacco products to soothe low-earners’ discontent over January’s WON2,000 (about 80 percent) cigarette price hike.

But the move attracted widespread criticism in political circles, including from members of his own party.

“We don’t have an immediate plan either to introduce or cancel the plan,” Yoo told reporters. “We are now reviewing it at an idea level.”

Lawmaker Chung Woo-taik argued that such an inconsistent policy would only arouse public mistrust toward the government.

He said the government had justified the increase in tobacco prices as a way of protecting people’s health, while critics had claimed that it had been designed to secure the revenue needed to implement President Park Geun-hye’s welfare pledges.

“Introduction of low-price cigarettes would only prove that the government raised the price to actually boost taxes,” he said.