South Korea: Tobacco Sellers Fear New Warning Pictures

Another powerful anti-smoking law to be implemented this Friday will be a heavy burden on Korean retailers, such as convenience stores and duty free shops, according to industry sources.
 

Tobacco manufacturers will have to print images highlighting the deadly risks of smoking on their cigarette packets starting Dec. 23, according to the Ministry of Health and Welfare.
 

The new law enforces more than 65 percent of a cigarette packet's surface to be covered with warning pictures and phrases.
 

On the upper side of a packet will be printed an appalling image that covers more than 30 percent of the packet's surface.
 

Each packet will have a picture about one of 10 smoking-related diseases: lung cancer, larynx cancer, oral cancer, cardiac disorder, stroke, second-hand smoking, sexual dysfunction, skin aging, premature death and smoking during pregnancy.
 

The health ministry said it will require tobacco companies to change the images every two years.
 

The Korea Tobacco Retailer Association had demanded the government exclude five images among the ten, but their request was rejected.
 

"It is expected to take about a month or two for the printed cigarette packages to go on display at convenience stores," an official of the health ministry said, "so most consumers will likely see the new packets in late January or February at the earliest."
 

The ministry, however, plans to start displaying the packages with warning images this Friday at some stores in Seoul, that especially have a large floating population, such as Yeouido, Gangnam, Hongdae and Gwanghwamun areas, so consumers notice the implementation of the new law on the very day. 
 

Retailers in woe
 

According to industry sources, convenience store owners are the most worried about the new anti-smoking policy, as they have highly depended on cigarette sales.
 

Most convenience store chains, such as GS Retail operating GS25 and BGF Retail operating CU, officially said they will follow the new policy faithfully.
 

However, store owners are demanding the headquarters take measures against the expected drops in sales, according to convenience store industry sources.
 

"Sales of tobacco generally occupy about 40 percent of a convenience store's total sales," said a spokesperson of Korea Seven, an operator of 7-Eleven. "Our company will wait and see the flow for a while as others, but it is true that some store owners are still concerned about the possible decrease in sales and request the headquarters to take some measures."
 

With Me and 7-Eleven even considered selling cigarette cases at their stores, due to the demands of some customers and store owners.
 

The cases, which would cover up the horrific images, have recently become popular among young smokers.
 

"It will be hard to regulate selling cigarette cases at convenience stores," the health ministry official said. "However, we are trying to pass a law, which at least bans convenience stores from concealing the cigarettes displayed on the shelves."
 

The ministry is concerned stores may hide packets inside cabinets or lay packets on the side.
 

According to the ministry, duty free shops will also be forced to sell cigarettes with warning images just as convenience stores.
 

Small and medium-sized duty free store operators have demanded the government not implement the law, claiming tourists will not buy products from the duty free shops.
 

However, the health authorities rejected their demands.
 

"A few duty free shop owners, especially those who only deal in tobacco and alcohol at airports and seaports, complained about the warning images on tobacco packets," an official of the Korea Duty Free Association said. "For them, the new law may make matters worse, because most of them have already suffered a long-term economic recession."
 

Producers yet to take measures
 

The government said it will also keep watch on tobacco firms, to see if they build up inventories after the law's implementation.
 

During a tobacco price hike last year, foreign tobacco firms, such as Philip Morris International Korea and British American Tobacco, were accused of reaping huge illegal inventory gains.
 

Tobacco firms, however, said they have yet to consider taking any countermeasures this time and will obey the new policy.
 

"We will just wait and see until the results come up," a KT&G spokesperson said. "It is hard to predict the changes in our sales."
 

The health ministry said tobacco products without warning images will not be able to be sold in markets after June 23.
 

Because most cigarettes expire after six months, retailers will have to return their stocks to manufacturers after the day.
 

According to data from the Korea Health Promotion Foundation, smoking rates in 18 countries fell by 4.2 percent on average after they put warning images on cigarette packets.