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Gov`t to crack down on cigarette cornering ahead of price hike

Gov`t to crack down on cigarette cornering ahead of price hike

Posted September. 13, 2014 03:17,   

한국어

As there are signs of hoarding cigarettes ahead of the planned increase in cigarette prices, the government has decided to levy a fine of up to 50 million won (50,000 U.S. dollars) on manufacturers, importers, wholesalers and retailers cornering and hoarding the tobacco products.

The Ministry of Planning and Finance said Friday that it will crack down on cornering and hoarding out of concern over supply shortages in the products following the announcement of a cigarette price increase.

If manufacturers and importers of tobacco products produce or import far more amount of cigarettes than usual to increase sales amid a hoarding rush or if wholesalers or retailers are found to be hoarding cigarettes in an attempt to sell them after a price hike, they will be subject to the fines.

Specifically, manufacturers and importers will face sanctions if they are found to ship cigarettes more than the average amount of the January-August period. Wholesalers and retailers will be fined if they buy cigarettes exceeding 4 percent of their average purchasing amount of the same period. The crackdown will be implemented temporarily from Friday noon until the actual price increase.

Consumers are not subject to the crackdown. However, individuals who do not have a wholesale or retail license for cigarette sale but are found to sell tobacco products they hoarded are subject to up to one year of imprisonment or 10 million won (10,000 dollars) in fine.