KT&G (XKRX:033780), the Korean tobacco company, also contributed while allaying some investors’ concerns about its pricing. An excise tax accounts for the major share of cigarette prices in Korea, and KT&G believed that, despite an increase in the tax rate, it could raise the price of cigarettes without losing a sizable number of customers. Thus far, the company’s results have confirmed that its thinking was correct, and the stock advanced.
From First Eagle Global Fund's second quarter 2017 shareholder commentary.
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