Due to the impeachment of the president of South Korea, the amendment of the tobacco law has been delayed, and the control gap of synthetic nicotine is worrying. The industry is calling for synthetic nicotine to be classified as regulated cigarettes to prevent tax losses and youth smoking problems.
South Korea’s Presidential Impeachment Delays Synthetic Nicotine Regulation Bill
According to N.EWS reported on December 18, due to the recent “impeachment of the South Korean president” incident, the amendment of the “Tobacco Business Law” on the same treatment and regulation of synthetic nicotine as cigarettes is expected to be delayed until next year. The suspension of discussions on this amendment may lead to a more serious regulatory gap.
The current Tobacco Business Law does not include e-cigarettes with synthetic nicotine in the regulation of cigarettes. Industry insiders have been calling for synthetic nicotine to be classified as regulated cigarettes. They argue that synthetic nicotine is just as harmful to humans as conventional cigarettes, so the same regulation should apply to maintain fairness.
The problem of legislative gaps may persist
According to a study released by the Ministry of Health and Welfare on November 27, 45 items of harmful substances (such as carcinogenicity and reproductive toxicity) were detected in synthetic nicotine liquid, which exceeded 41 items of natural nicotine liquid with the same capacity. The Health and Welfare Ministry has conveyed its position to the Strategy and Finance Ministry that it is appropriate to bring synthetic nicotine under the regulation of the Tobacco Business Act.
Draft of partial amendments to the Tobacco Business Law
Rep. Park Sung-hoon (박성훈) of the People Power Party proposed a partial amendment to the Tobacco Business law in 2020. In 2023, the Congressional Committee on Planning and Finance also discussed regulatory reforms for synthetic nicotine. Currently, 10 amendments to the tobacco business law are under consideration in the 22nd National Assembly.
On November 27, the Economic and Financial Subcommittee of the Planning and Finance Committee of Congress met to discuss the amendment and plans to hold a public hearing. However, due to the resignation of President Yoon Seok-ak, the National Assembly was effectively paralyzed, and the public hearing on the Tobacco Business law, which was scheduled for early this month, was not postponed.
The delay in the adoption of the amendment to the Tobacco Business Act is expected to have long-term social consequences in the legislative gap. Because synthetic nicotine is not taxed, it is cheaper than tobacco, and there are no restrictions on the way it is sold, and it is easily accessible to teenagers. According to the South Korean Department of Disease Control, about 70 percent of adolescent smokers have started smoking from e-cigarettes.
In addition, synthetic nicotine is not taxed, resulting in a net price of less than 10,000 won (about $7) for its 30 ml liquid refill.
In addition, tax losses and abuses due to regulatory loopholes continue to emerge. The Korea E-Cigarette Safety Association estimates that synthetic nicotine e-cigarettes evade about 1.6 trillion won ($1.1 billion) in taxes every year. To save taxes, some imported sellers falsely claim that natural tobacco tar is synthetic nicotine. According to the General Administration of Customs, from November 2022 to July 2023, the number of false declaration cases reached 110.
A tobacco industry official said,
- According to the Organization for Economic Cooperation and Development (OECD), South Korea is the only country that does not include synthetic nicotine in the regulation of cigarettes. This falls short of international standards and needs to be improved. Considering youth protection, tax protection and fairness in the industry, there is an urgent need for swift legislative action.”
