Delay in Passing Amendment to Tobacco Business Law Raises Concerns

According to N.News, the congressional passage of the amendment to the Tobacco Control Act, which would treat and regulate synthetic nicotine cigarettes the same as traditional cigarettes, is expected to be delayed until next year due to the ongoing presidential impeachment proceedings starting this winter. The pause in discussions regarding this amendment may result in more serious regulatory gaps.

The current Tobacco Control Law does not classify liquid cigarettes containing synthetic nicotine as cigarettes. Industry insiders have long been calling for synthetic nicotine to be classified as cigarettes as well. They argue that synthetic nicotine cigarettes are equally harmful to the human body as traditional cigarettes, and therefore should be subject to the same regulations to maintain fairness.

According to a study released by the South Korean Ministry of Health and Welfare on November 27, there are 45 harmful substances (such as carcinogens and reproductive toxicants) detected in synthetic nicotine solution, exceeding the 41 found in equivalent amounts of natural nicotine solution. The Ministry of Health and Welfare has communicated its position to the Ministry of Planning and Finance, stating that regulating synthetic nicotine under the Tobacco Business Act is appropriate.

In 2020, National Forces Party lawmaker Park Seong-hoon proposed a draft amendment to the Tobacco Business Act. In 2023, the National Assembly's Planning and Finance Committee also discussed improving the system for synthetic nicotine electronic cigarettes. Currently, in the 22nd National Assembly, 10 draft amendments related to the Tobacco Business Act are pending review.

On November 27th, the Economic and Fiscal Subcommittee of the House Planning and Budget Committee held a meeting to discuss an amendment and plan to hold a public hearing. However, due to the impeachment of President Yoon, the parliament has effectively become paralyzed, and the public hearing on the Tobacco Industry Law scheduled for earlier this month has been indefinitely postponed.

The delayed passage of the amendment to the Tobacco Business Act is expected to prolong the long-term social consequences of the legislative vacuum. Due to the lack of taxation on synthetic nicotine cigarettes, which are cheaper than regular cigarettes and have almost no sales restrictions, they are easily accessible to teenagers. Data from the Korean Centers for Disease Control and Prevention shows that around 70% of teenage smokers start smoking through e-cigarettes.

Additionally, synthetic nicotine cigarettes are not taxed, leading to their 30ml e-liquid supplement being sold online for less than 10,000 Korean won (approximately 7 US dollars).

Furthermore, tax losses and cases of abuse continue to emerge due to regulatory loopholes. The Korean e-Liquid Safety Association estimates that the annual amount of tax evasion for synthetic nicotine e-cigarettes could be as high as approximately 1.6 trillion Korean won (1.1 billion US dollars). Some importers falsely report natural nicotine as synthetic nicotine in order to save on taxes. According to data from the Korea Customs Service, there were 110 cases of false declaration from November 2022 to July 2023.

A tobacco industry official stated that...

South Korea is the only OECD country that has not classified synthetic nicotine as a tobacco product. This is not in line with international standards and needs to be improved. Urgent legislative measures are needed to protect young people, ensure tax security, and promote fairness in the industry.