South Korea is grappling with increasing e-cigarette use, especially among young people, prompting calls from bodies like the National Assembly Research Service for urgent regulatory action. A key concern is the current legal loophole for synthetic nicotine, which is not classified as a tobacco product under existing laws, thereby evading tobacco taxes and stricter sales regulations.
Read moreTag Archive for: South Korea
Concerns raised in South Korea over lower taxes on solid-form e-cigarettes compared to liquid types, prompting calls for tax system reform for fairness.
A significant difference in taxation standards based on product structure persists in South Korea’s e-cigarette market, leading to debates over fairness and calls for regulatory reform. Specifically, products using nicotine in solid form are subject to much lower tax rates compared to their liquid-based counterparts.
Tobacco Control Center Calls for Tax System Revision
The Tobacco Regulation Research and Education Center highlighted this issue on the 13th, stating that solid-form e-cigarettes are in a tax blind spot and urging an overhaul of the current taxation method. Currently, liquid-type e-cigarettes, where nicotine-infused liquid is absorbed by cotton, are taxed based on the total volume of the nicotine-containing liquid (approx. 628 KRW per 1ml). In contrast, solid-type products, which use solid nicotine with a non-nicotine liquid, are taxed based only on the weight of the solid nicotine, regardless of the liquid volume. This results in a significantly lower tax (e.g., approx. 70 KRW for a 2ml liquid/0.8g solid product).
Experts point out that this discrepancy means consumers pay vastly different taxes for similar nicotine consumption, creating an unfair advantage for certain products and potentially serving as a tax avoidance method. While the government is discussing overhauling the tax system for new tobacco products, including synthetic nicotine, critics argue that detailed measures for solid-type e-cigarettes are lacking. Lee Sung-kyu, head of the Center, emphasized that tobacco taxation is directly linked to health policy and the current system could undermine fairness and policy trust.
South Korea witnessed a dramatic rise in e-liquid imports last year, reaching $85.64 million – a 39.5% increase from 2023, according to customs data. This upward trend continues, with first-quarter 2025 imports already up 8.5% year-over-year. Critics argue this surge highlights a significant “regulatory blind spot” concerning synthetic nicotine.
Read moreSouth Korea, a captivating nation where ancient traditions meet hyper-modern cityscapes and vibrant K-culture, welcomes millions of visitors each year. As global travel resumes and vaping remains popular worldwide, understanding the local rules for electronic cigarettes(vapes) becomes crucial for a hassle-free trip. South Korea maintains a distinct and actively evolving regulatory landscape for vapes, differing significantly from many other countries and impacting everything from import allowances to public usage. This guide provides a clear, up-to-date overview of South Korea’s vape laws in 2025, offering essential information on legality, specific regulations, and practical advice for travelers and residents alike.
Read moreSouth Korea is on the cusp of passing legislation that will classify synthetic nicotine, the key ingredient in e-liquid vaping products, as “tobacco,” subject to stricter regulations. The National Assembly’s ruling and opposition parties have reached an agreement on the framework, which includes a partial grace period for existing e-liquid businesses regarding school proximity restrictions and taxation.
Read moreA bill seeking to regulate synthetic nicotine products, which make up a significant portion of the e-liquid vaping market, failed to pass the subcommittee stage of the South Korean National Assembly’s Planning and Finance Committee. The proposed amendment to the Tobacco Business Act aimed to expand the definition of tobacco products to include synthetic nicotine.
Read moreThe National Assembly Research Service has released a report advocating for the taxation of synthetic nicotine e-cigarettes, citing concerns over tax equity and public health. The report, titled “Issues and Improvement Measures Related to E-cigarette Regulation,” calls for amending the legal definition of tobacco to include raw materials such as nicotine, regardless of the manufacturing method, and implementing an integrated taxation system.
Read moreAs the year 2024 draws to a close, South Korea finds itself at a crossroads in the battle against the unregulated sale and distribution of synthetic nicotine cigarettes. On December 27, a public hearing on the proposed amendments to the Tobacco Business Act was held at the National Assembly, highlighting the growing concerns over the “regulatory blind spot” that has led to massive tax deficits and an alarming increase in youth smoking.
Read moreSouth Korea’s efforts to regulate synthetic nicotine cigarettes are encountering significant legislative obstacles, with potential implementation now likely pushed to 2025. The proposed amendments to the Tobacco Business Act have stalled in the National Assembly, highlighting complex political and regulatory challenges.
Read moreBusan City Councilor Kim Hyo-jung has called for urgent measures to protect minors from synthetic nicotine e-liquid vaping devices. During a recent city council meeting, Kim highlighted the regulatory gap that allows these products to evade taxation and oversight typically applied to conventional tobacco products.
Read more