The revenue office is investigating Philip Morris Korea and British American Tobacco (BAT) Korea on suspicion of evading tax on profits from last year’s massive hike in cigarette prices, Yonhap News Agency reported.

In January 2015 the pack price for cigarettes was raised by KRW 2,000 (EUR 1.59) to KRW 4,500. The cigarette makers are suspected of selling old inventory stock at the new price and pocketing the difference, the news agency said. However an official for the National Tax Service declined to confirm the investigation to Yonhap, citing NTS policy that bans comments on tax audits.