Tobacco.org

Cigarette maker aims high  

Stepping inside the KT&G tobacco manufacturing plant in Yeongju, which is two hours away from Seoul, a countless number of cigarettes is being quickly filtered, sorted and packed by a group of automated state-of-the-art machines, leaving the smell of freshly packed cigarettes hanging in the air.

Although the recent economic downturn and increased awareness of the dangers of smoking have decreased the number of smokers here - from 67.6 percent of the male population in 2000 to 40.4 percent last year - the local tobacco industry is more competitive with foreign cigarette makers than ever.

The Korean government only began allowing imported cigarettes to be sold here in 1988. But support for local brands remained strong even after the import ban was lifted, and it was difficult for foreign tobacco manufacturers including Philip Morris, British American Tobacco and Japan Tobacco to penetrate the market.

However, times have changed. Although the Korean tobacco market is not seen by foreign firms as fully open in terms of regulations, consumers are more open to purchasing foreign products, allowing foreign companies a bigger market share.

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