Investigation on Fraudulent Sales of E-Liquid & Tax Evasion in South Korea

Regulations by 2FIRSTS.ai
Dec.22.2023
Investigation on Fraudulent Sales of E-Liquid & Tax Evasion in South Korea
South Korean police investigate companies suspected of fraudulently altering e-liquid components to evade taxes. Owner and advisor among suspects.

According to a report by the South Korean SBS website, the Korean police have initiated an investigation into several companies suspected of fraudulently manufacturing and selling e-liquid. These companies allegedly altered the main components of e-liquid and engaged in tax evasion. The police have filed a case for violation of tobacco business laws against company A, a e-liquid retailer, as well as its collaborating supplier and consultant Mr. B, among five suspects.

 

The main ingredient of e-liquid, nicotine, can be divided into natural nicotine and synthetic nicotine. Currently, A company is accused of fraudulent behavior, allegedly selling natural nicotine disguised as synthetic nicotine.

 

According to current regulations, the sale of natural nicotine is subject to tobacco consumption tax, with a corresponding tax rate of 1,799 Korean won per milliliter. However, synthetic nicotine is not classified as tobacco and is therefore exempt from taxation. The police suspect that the aforementioned company is using this rule to evade taxes and is currently conducting a thorough investigation.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

PMI Launches New ZYN Nicotine Pouch in the Philippines, Available Simultaneously at IQOS Stores and on the Official Website
PMI Launches New ZYN Nicotine Pouch in the Philippines, Available Simultaneously at IQOS Stores and on the Official Website
PMI’s Philippine affiliate, PMFTC, has launched the new ZYN Bright Green 1.5 mg nicotine pouch in Manila with refreshed packaging, calling it the latest step in the company’s “smoke-free” transition initiated in 2016. The product will be available starting in November at IQOS stores across Metro Manila and on the official website.
Nov.10 by 2FIRSTS.ai
Australian Border Force Blocks Massive Vape Shipment Following China Intelligence
Australian Border Force Blocks Massive Vape Shipment Following China Intelligence
Australia has seized more than 600,000 illicit vapes in two months, following coordinated intelligence with overseas partners. The Australian Border Force (ABF) warns that illegal vaping products now form a multibillion-dollar black market dominated by organised crime syndicates.
Nov.21 by 2FIRSTS.ai
Ohio Appeals Court Upholds Dismissal of Lawsuit Against E-Cigarette Retailer, Deepening State-Federal Regulatory Dispute
Ohio Appeals Court Upholds Dismissal of Lawsuit Against E-Cigarette Retailer, Deepening State-Federal Regulatory Dispute
Ohio Appeals Court Rejects State Attorney General's Lawsuit Against E-Cigarette Retailer, Emphasizing FDA Regulatory Authority.
Oct.15 by 2FIRSTS.ai
JTI Plans New Factory in Romania, Set for Completion in 2027
JTI Plans New Factory in Romania, Set for Completion in 2027
JTI has announced plans to build a new factory in Ștefăneștii de Jos to replace its current Bucharest site, which faces space constraints. The project is expected to be completed in 2027, with ground works starting soon. The company highlighted ongoing efforts to expand capacity and modernize its Romanian operations.
Nov.28
Malaysia CID Endorses Nationwide Vape Ban Amid Rising Drug-Laced Vape Cases
Malaysia CID Endorses Nationwide Vape Ban Amid Rising Drug-Laced Vape Cases
Malaysia’s Federal Criminal Investigation Department (CID) has voiced support for a nationwide ban on vaping, particularly targeting drug-laced vape devices, to address rising abuse cases.
Oct.23 by 2FIRSTS.ai
From Partnership to Acquisition: Why KT&G Is Betting on the Global Nicotine Pouch Market
From Partnership to Acquisition: Why KT&G Is Betting on the Global Nicotine Pouch Market
As global competition in the nicotine pouch market accelerates, Korea’s tobacco major KT&G has moved with a “Partnership + Acquisition” strategy, teaming up with Altria to acquire Nordic pouch maker Another Snus Factory (brand “LOOP”). Why deploy capital now, and why take this route? Drawing on company disclosures, regulatory monitoring and on-site observations from InterTabac Dortmund, 2Firsts analyzes KT&G’s strategic calculus and the signals behind this move.
Nov.05