South Korea

Illicit Consumption rose by one-third to 1.6 million cigarettes in 2017. However, it remains low at just 2.2% of Total Consumption.
South Korea
Illicit Trade Volume (Bn)
2012 2013 2014 2015 2016 2017
Illicit trade Incidence (%)
2012 2013 2014 2015 2016 2017
Total Tax Loss (KRW Bn)
2012 2013 2014 2015 2016 2017

Composition of Cigarette Consumption

71.6Bn Cigarettes
  • Cigarettes
    Bn
  • Legal Domestic Consumption (LDC)
    68.9
  • Non-Domestic Legal (NDL)
    1.1
  • Non-Domestic Illicit
    1.6
Total Cigarette Consumption
71.6Bn
Total Illicit Consumption
1.6Bn

Estimated Excise Tax Loss

KRW 259 Bn
  • KRW
    Bn
    USD Mn
  • Lost excise revenue
    227 200.7
  • Lost GST revenue
    31.9 28.2
Actual revenue from excise duties on tobacco
KRW 11,200.0 Bn
Estimated Tax Loss From Illicit Consumption
KRW 259 Bn

South Korea

  • Illicit Consumption has risen for three consecutive years in South Korea, hitting an estimated 1.6 billion cigarettes in 2017. This represented a 33.0% increase in comparison with 2016. In 2014, the first year that South Korea was included in the Asia Illicit Tobacco Indicator Report, Illicit Consumption was estimated at just 113 million cigarettes.​

  • However, in terms of Incidence, Illicit Consumption remains low at just 2.2% of Total Consumption. This is much lower than other North Asian markets included in this research.​

  • The total Tax Loss (including GST) associated with Illicit Consumption was estimated at KRW 259.0 billion in 2017, with tobacco tax losses representing around 2.0% of total potential tobacco tax revenues.​

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