South Korea Tobacco Market

South korea has a relatively high smoking rate amongst its male population, but regulations are now being implemented, particularly those aimed at young people, in order to tackle the growing prevalence of smoking.the tobacco control law, implemented in 2015, has been designed to reduce the nation's smoking rate by curbing smoking in public spaces and prohibiting sales and promotion of tobacco products to those under 19. the law also requires tobacco companies to display health warnings on all packages, while cigarette sales are prohibited in vending machines and single cigarettes may not be purchased.in addition, south korea has implemented a considerable tobacco tax of 2000 won on a single packet of 20 cigarettes (an increase from 1500 won). this has resulted in significant decreases in numbers of smoked cigarettes and the sale of cigarettes has decreased by 4.8% (according to 2017 figures).the south korean government is actively encouraging electronic cigarette usage as a means of transitioning away from traditional tobacco, through the implementation of laws which define and classify e-cigarettes. such initiatives are meant to promote the development of the e-cigarette industry which, with existing products being considered expensive, has failed to take off.in terms of potential growth for the south korean tobacco market, although cigarette sales may continue to decline, this could be offset by the sale of e-cigarettes. the government is continuing to set ambitious goals for health improvements, such as a 30% reduction in smoking prevalence by 2022. however, it appears that the overall outlook for the tobacco market is one of negative growth.as such, companies should prepare for decreases in tobacco market size and value in the long-term. companies will need to divest their current stocks efficiently in order to avoid losing money and they must determine new sources of value or avenues of investment to maintain a competitive edge in the market. additionally, tobacco companies should adapt to the changing market conditions in order to remain profitable.