Currently, South Korea's Tobacco Business Act does not include synthetic nicotine e-cigarettes under tobacco management. Industry experts have long advocated for the inclusion of synthetic nicotine in tobacco regulation, arguing that, like traditional tobacco, synthetic nicotine is harmful to human health and should be subject to the same regulations to ensure fairness.
A study released by the South Korean Ministry of Health and Welfare on November 27 found 45 harmful substances (such as carcinogenic and reproductive toxins) in synthetic nicotine liquid, surpassing the 41 items found in an equivalent amount of natural nicotine liquid. The Ministry of Health and Welfare has conveyed to the Ministry of Planning and Finance its position that it is appropriate to include synthetic nicotine under the Tobacco Business Act’s regulations.
In 2020, National Power Party lawmaker Park Seong-hoon proposed a partial amendment to the Tobacco Business Act. In 2023, discussions on regulatory reform for synthetic nicotine were also held at the National Assembly's Planning and Finance Committee meeting. Currently, in the 22nd National Assembly, 10 amendments related to the Tobacco Business Act are awaiting review.
On November 27, the National Assembly's Planning and Finance Committee's Economic and Financial Subcommittee convened to discuss the amendment and planned a public hearing. However, due to the impeachment of President Yoon Suk-yeol, the National Assembly has effectively become paralyzed, and the public hearing for the Tobacco Business Act, originally scheduled for earlier this month, has been indefinitely delayed.
The delay in passing the Tobacco Business Act amendment is expected to prolong the social consequences of the legislative gap. Because synthetic nicotine is not taxed, its price is lower than that of cigarettes, and there are almost no sales restrictions, making it easily accessible to teenagers. Data from the Korea Disease Control and Prevention Agency shows that about 70% of teenage smokers start with e-cigarettes.
Additionally, synthetic nicotine is not subject to taxation, resulting in 30ml refill e-liquid being sold online for less than 10,000 Korean Won (approximately $7).
Moreover, the regulatory loophole has led to ongoing tax revenue losses and misuse. The Korea E-Cigarette Safety Association estimates that the tax evasion from synthetic nicotine e-cigarettes amounts to approximately 1.6 trillion Korean Won ($1.1 billion) annually. Some importers have misrepresented natural nicotine as synthetic nicotine to avoid taxes. According to data from the Korea Customs Service, from November 2022 to July 2023, there were 110 cases of false declarations.
An official from the tobacco industry stated,
"Among OECD countries, South Korea is the only one that does not classify synthetic nicotine under tobacco management. This creates a gap with international standards, which urgently needs to be addressed. Considering the protection of teenagers, tax guarantees, and industry fairness, legislative action is urgently needed."
