Convenience Store Owners Frustrated by Ban on External Tobacco Advertisements

Regulation for the Protection of Children and Adolescents

Government "Crackdown from May" Warning Notice

Store Owners "Sales Decline" Collective Protest

[Asia Economy Reporter Lim Hye-sun] The government will intensively crack down from May 1 on cigarette advertisements installed inside convenience stores if they are exposed to the outside, considering it a legal violation. According to the Ministry of Health and Welfare on the 28th, local governments recently sent warning notices to cigarette retailers such as convenience stores stating, "All cigarette advertisements inside the business premises must not be visible from the outside," and that they will actively enforce penalties for violations starting May 1. According to the National Health Promotion Act (Article 9-4, Paragraph 1, Item 1) and the Tobacco Business Act (Article 25, Paragraph 2, and Enforcement Decree Article 9, Paragraph 1, Item 1), cigarette advertisements at retail stores can only be displayed inside the store through signboards, stickers, posters, etc., and must not be visible from outside. Violations of the current law may result in imprisonment for up to one year or a fine of up to 10 million KRW, or suspension of business for up to one year.

The scope of application covers all cigarette advertisements attached or displayed inside the retailer's business premises. If cigarette advertisements are visible when looking inside the business premises from 1 to 2 meters away from the boundary line of each side of the premises, punishment can be imposed. Cases where only the background of the cigarette advertisement is visible without letters, characters, or product shapes are allowed.

The government's reason for regulating cigarette advertisements is to protect children and adolescents. The judgment is that if exposed to cigarette advertisements without protection, even non-smoking youth may become familiar with cigarettes. According to a survey conducted by the Ministry of Health and Welfare, Korea Health Promotion Institute, and National Smoking Cessation Support Center from September to October last year targeting educational environment protection zones within 200 meters around 200 elementary, middle, and high schools in Seoul, there was an average of seven cigarette retailers such as convenience stores. Each location had more than 22 cigarette advertisements on average.

Convenience store owners are collectively protesting by submitting petitions, arguing that the regulation does not consider the sales agents. Convenience stores are structured to allow clear visibility from the outside to the inside for crime prevention during late-night operations according to the 'Building Crime Prevention Design Guidelines' under the Building Act. Regardless of the store owners' intentions, cigarette advertisements are visible from the outside. Convenience store owners lamented that darkening or making the transparent exterior walls opaque to avoid crackdowns could reduce the visibility of other products, leading to decreased sales. There is also great concern that if they do not receive the cigarette advertising fees they have been receiving monthly from manufacturers, the store operating environment will worsen further. Convenience stores receive an average of 500,000 to 1,000,000 KRW in advertising fees per month.

One convenience store owner complained, "With the increased burden on small business owners due to the minimum wage hike, if cigarette sales decrease, the store operating environment will deteriorate," adding, "Since cigarette sales account for about 40% of convenience store sales, if this revenue decreases, the possibility of closing the store is high."