South Korea: Tobacco Growers Protest Sale of Foreign Cigarettes to Soldiers

Source from:  Korea Times 04/15/2016

Tobacco growers are protesting the government's recent decision to allow the sale of foreign brand cigarettes to soldiers, arguing that KT&G, which exclusively buys tobacco leaves produced by local growers, should remain as sole supplier for the nation's armed forces.

The Korea Tobacco Growers Cooperative Association (KTGO) is rebuking the Ministry of National Defense for making foreign brand cigarettes available for soldiers on base.

"The growing market share of foreign cigarette brands has threatened the livelihoods of local tobacco farmers, who entirely depend on KT&G for survival," a KTGO official said. "If foreign products become available inside military barracks, this certainly hurts KT&G's sales, which will then adversely affect local tobacco growers."

The official argued that foreign cigarette makers have never kept their promises to purchase tobacco leaves from domestic farmers, saying it will take all possible measures to curb the sale of foreign cigarette brands.

"KT&G buys tobacco leaves from local growers even though they are more expensive than imported ones for the sake of the domestic tobacco industry. In contrast, foreign companies have no intent to share growth with farmers," he said. "We will continue to covey our opinion to the defense ministry and the National Assembly, urging them to introduce measures to support tobacco farmers."

KTGO's protest came after the defense ministry's announcement Wednesday that it would allow Philip Morris International (PMI) Korea to sell its Marlboro Gold Original cigarettes to soldiers on base for one year, beginning May 1. Japan Tobacco International (JTI) Korea is now also permitted to sell Mevius LSS Wind Blue. The ministry also chose KT&G's Raison French Black and Bohem Cigar Slim Fit.

In addition to these four, 16 other cigarette products are available at post exchanges (PX).

This marks first time the military has opened the door to foreign cigarette makers. In 2007, the defense ministry began holding an open bid, but until last year foreign makers could not break KT&G's monopoly.

When contacted by The Korea Times, KT&G was reluctant to comment on the issue, saying that it is not in a position to express opinions about the defense ministry's decision.

An industry analyst, who declined to be named, speculated that PMI Korea's recent lawsuit against the defense ministry may have exerted influence to a certain extent. "The suit, calling for the annulment of the defense ministry's 2015 decision to only allow the sale of KT&G brand cigarettes to soldiers, may have pressed the ministry. Who knows?"

British American Tobacco (BAT) Korea also lodged a similar suit.

PMI Korea welcomed the defense ministry's decision, saying that it is glad to be able to offer soldiers its products.

"The ministry has finally decided to respect diverse preferences among young soldiers. They will have more options to choose from, which is a good thing," a company spokeswoman said. "We will double our efforts to offer high-quality products." Enditem