The Korea Customs Service is to reinforce the monitoring of tobacco smuggling on concerns about the burgeoning trade of duty-free cigarettes in the domestic market following an announced price hike.

In the run-up to a tobacco price hike on Jan. 1, the agency said it would closely monitor tourists purchasing more duty-free cigarettes than the government-imposed 10 pack limit. 

The government previously announced that it would raise tobacco prices by 2,000 won ($1.80) per pack, increasing the tax burden on smokers. The increase, the first since 2004, is a hike of almost 80 percent in the average price of cigarettes.

“We witnessed similar practices in 2004, the last time there was a price hike,” said KCS investigation division director Lee Jae-gil.

The agency said it would also work with regional offices, police and prosecutors to prevent duty-free cigarettes supplied to the U.S. Army in South Korea from reaching the domestic market.

According to the agency, the total value of smuggled cigarettes surpassed a record-high 66.7 billion won as of November, up from 43.7 billion won last year.

Smuggling only amounted to 3.3 billion won and 4 billion won in 2012 and 2011, the KCS officials said.

By Suk Gee-hyun (monicasuk@heraldcorp.com)