South Korea Notice: Stockpiling Cigarettes Strictly Prohibited, Violators Face Fines Up to RMB 300,0
Introduction: According to the Ministry of Economy and Finance of South Korea, the government strictly prohibits the stockpiling of cigarettes, with violators facing fines of up to 300,000 RMB.
According to reports from Chinese electronic cigarette news, the South Korean government announced on September 12 the "Notice on Stockpiling and Hoarding" (hereinafter referred to as the "Notice") to prevent illegal activities such as stockpiling by cigarette manufacturers and sellers that disrupt market order for profit. The Ministry of Economy and Finance of South Korea stated that violators of the Notice could face up to two years in prison or fines, with penalties reaching up to 50 million Korean won (approximately 300,000 RMB).
According to the Notice, cigarette manufacturers, importers, wholesalers, and retailers that produce, import, or purchase excessive amounts of cigarettes and reduce their outbound and sales volumes for profit will be considered illegal activities. The Notice stipulates that the monthly production and import volume of cigarettes by manufacturers and importers cannot exceed 104% of the average monthly production and import volume from January to August of this year; wholesalers and retailers cannot purchase more than the average monthly purchase volume from January to August of this year.
Reports indicate that the new regulations do not restrict individual purchasing behavior, so reporting and punishing illegal activities have limitations. The South Korean government plans to monitor the market by dispatching regulatory teams and accepting reports.
On September 11, the South Korean Ministry of Health and Welfare announced a "Comprehensive Smoking Cessation Strategy" to raise cigarette prices and reduce smoking rates. According to this strategy, the government plans to increase the price of cigarettes from the current 2,500 Korean won per pack to 4,500 Korean won (approximately 27 RMB) per pack starting January 2015.
