S. Korea's cigarette exports surge 3.7-fold over past decade

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South Korea's cigarette exports surged by 3.7-fold over the past decade due to quality improvement of locally-made tobacco and efforts to diversify export destinations, customs office data showed Wednesday.

According to the Korea Customs Service (KCS), the country's cigarette exports reached 572.05 million U.S. dollars in 2011, jumping by 3.7-fold from 156.29 million dollars tallied in 2002. The exports grew at an annual average rate of 15.5 percent since 2002.

Imports of foreign cigarettes, however, contracted to 341.1 million dollars in 2011 from 343.73 million dollars in 2002, sending the trade balance for the sector to a surplus of 230.95 million dollars in 2011 from a deficit of 187.44 million dollars a decade ago.

"Demand for imported cigarettes in the past was estimated to be replaced with the one for locally-manufactured products due to the improved quality," the customs office said in a press release.

The efforts to diversify export markets also contributed to the export surge. Seoul exported cigarettes to 52 nations in 2002, but the figure increased to 74 countries last year.

Meanwhile, the United Arab Emirates was the largest export destination for South Korean cigarettes in 2011, accounting for 27. 8 percent of the total shipment, according to the data.

The country imported 26.6 percent of the total cigarette imports from the Philippines in 2011, representing the largest tobacco exporter to South Korea last year. Endi

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