The Ministry of Strategy and Finance's Vice Minister Kim Yoon-sang said, "Whether synthetic nicotine or natural nicotine, I think it is right to include products like conventional cigarettes in the definition of tobacco under the Tobacco Business Act and manage them in conjunction."
People's Power lawmaker Park Sung-hoon noted, "To delay any longer would be to neglect the responsibility of the National Assembly to protect public health and safety."
Democratic Party lawmaker Jeong Tae-ho said, "The damage to small business owners selling synthetic nicotine e-cigarettes is not accurately assessed. The Ministry of Strategy and Finance cannot clearly present the price fluctuations and taxation points. Let's receive a report later and discuss it again."
The amendment to the Tobacco Business Act to prevent youth contact with e-cigarettes made from synthetic nicotine (hereinafter referred to as synthetic nicotine cigarettes) has not been able to pass through the National Assembly's committees. The amendment includes provisions to classify e-cigarettes made with synthetic nicotine as tobacco. If recognized as tobacco, it will be subject to taxes and sales to minors will be prohibited. E-cigarette sales and vending machines have infiltrated right up to the gates of middle and high schools, emerging as a social issue, but regulation remains difficult.
Why did this bill fail to pass through the National Assembly's Planning and Finance Committee? Looking at the minutes, lawmakers opposing it were echoing the sentiments of the e-cigarette industry, which does not trust the government's harm investigation results. They also suggested putting the bill on hold, citing the need for measures to address the damage expected in the synthetic nicotine cigarette industry due to the introduction of regulation.
◇ Conflicting positions… Is "smoking cessation products and nicotine patches not tobacco?"
According to the minutes of the National Assembly's Planning and Finance Committee meeting on Feb. 10, 2025, which was secured by ChosunBiz on the 13th, there was a clear division of opinions between those advocating for rapid amendments for public health rights and those stressing careful approaches to prevent damage to the synthetic nicotine cigarette industry.
The National Assembly's Planning and Finance Committee discussed a total of 10 amendment bills on the 10th that aimed to expand the definition of tobacco from 'leaves of tobacco' to 'tobacco and nicotine.' The core of the amendments is to include e-cigarettes made from chemically synthesized 'synthetic nicotine' as tobacco for regulation. If the definition of tobacco is expanded, existing regulations and taxes will apply to synthetic nicotine cigarettes as well.
The discussion began with an introduction from the expert committee on the amendment to the Tobacco Business Act and confirmation of the government's position. Vice Minister of Strategy and Finance Kim Yoon-sang and the Director General from the Ministry of Health and Welfare expressed the necessity of including synthetic nicotine cigarettes in the definition of tobacco for regulation.
Democratic Party lawmaker Kim Young-jin asked about the government's stance on the sales location restriction regulation in the tobacco law. Director General Hwang Soon-kwan of the Ministry of Strategy and Finance replied, "In principle, a 50-meter distance limit is appropriate, and implementing distance limits for retailers as well as designating retailers should be executed simultaneously with the law enforcement."
Lawmaker Kim Young-jin then inquired about the tax policy concerning synthetic nicotine cigarettes. Director Hwang responded, "Taxation is also a key means of regulating tobacco from a public health perspective," and asserted that "it makes sense that taxation should be implemented immediately."
To this, lawmaker Kim Young-jin retorted, "Does taxation ensure proper regulation?" Director Hwang explained, "It has the nature of a sin tax. Taxation leads to a reduction in consumption," noting that the World Health Organization also recommends taxation.
In response to Director Hwang's answer, Democratic Party lawmaker Jin Seong-jun pointed out, asking if, if synthetic nicotine is a problem, nicotine gum and patches used as smoking cessation aids should also be classified as tobacco.
Director Hwang stated, "In the case of smoking cessation aids containing nicotine, they are managed much more strictly as pharmaceuticals under the Pharmaceutical Affairs Act."
Lawmaker Jin Seong-jun then reiterated his question, asking, "Can manufacturers of synthetic nicotine cigarettes apply for approval to become smoking cessation aids?" Director Hwang replied, "They can apply, but once they apply, they immediately face stricter regulations. They must also pass a strict examination."
Lawmaker Cha Kyu-geun of the Justice Party pointed out that applying distance regulations could create a confusing situation. He suggested that consideration should be given to the contract periods of small businesses when setting the timing for taxation and regulation enforcement.
In response, Vice Minister Kim Yoon-sang stated, "If the National Assembly decides, that part can be accepted by the government."
Democratic Party lawmaker Jeong Il-young confirmed whether the opinions of the Ministry of Strategy and Finance and the Ministry of Health and Welfare were in agreement, and stated, "I also have no disagreement with the government's position."
People's Power lawmaker Park Dae-chul asked specifically about conflicts between existing businesses. He questioned, "In the event of conflicts regarding distance limitations among the 4,000 shops currently selling synthetic nicotine cigarettes, which companies will have to close? Even if a grace period is given, who will have to close once that period ends? Will they be allowed to continue their operations?"
Lawmaker Park also pointed out that if synthetic nicotine cigarettes are classified as tobacco under the tobacco law, online sales would be prohibited, stating, "What else could be wrong with selling it online? If you're an adult, can't you just buy it?"
When Vice Minister Kim emphasized that it would be "impractical" and explained that sales locations for synthetic nicotine cigarettes would have to be organized after the grace period, lawmaker Park responded, "This significantly increases the legislative risk."
◇ The government is told to 'conduct a survey and come up with measures'… Delayed regulations on synthetic nicotine
As discussions drifted towards protecting the rights of synthetic nicotine e-cigarette sellers, People's Power lawmaker Lee Jong-wook stated, "There are issues of youth safety and tax evasion, and regulations exist abroad as well," adding, "I believe those who are currently operating stores anticipated the risks associated with policy changes."
There was also an opinion that it isn't appropriate for the Planning and Finance Committee to discuss the Tobacco Business Act. It was argued that from the perspective of public health rights, this should be a matter discussed within the Health and Welfare Committee.
Democratic Party lawmaker Yoon Ho-joong asked, "Since when has the tobacco law been under the jurisdiction of the Ministry of Strategy and Finance?" He further remarked, "It seems that because the Ministry of Strategy and Finance continues to hold onto this, it is not being approached from a public health perspective but rather from the perspective of securing tax revenue. Please consider this."
Chairperson Jeong Tae-ho, who is the chair of the committee, stated, "This is an issue related to the survival of more than 4,000 small business owners," emphasizing that "one should not lightly regard the problems of a minority."
Lawmaker Jeong continued, "Those in the synthetic nicotine industry claim that it is not harmful at all. They have great distrust towards the Ministry of Health and Welfare's investigation results." He noted that they argue that fake liquid e-cigarettes were included in the samples from the Ministry of Health and Welfare.
In response, Jeong Hye-eun, Director of Health Promotion from the Ministry of Health and Welfare, said, "The verification samples were carried out based on those provided by the Ministry of Food and Drug Safety." Upon hearing this, lawmaker Jeong asked, "Did you confirm the dosage? Is it correct that the nicotine content is below 1 mg?"
Director Jeong emphasized, "There were no problems with the nicotine purity. We underwent all evaluations concerning objectivity and representation," and noted, "We also published the research results in an SCI journal and received notarization."
Lawmaker Jeong asked, "Is there not a way to persuade them? Perhaps conducting experiments with recommendations from the synthetic nicotine cigarette industry?"
Director Jeong clarified, "How can the objectivity of the reagents they present be guaranteed?" asserting that "it is difficult for the Ministry of Health and Welfare, which concluded the research, to accept that."
At the end of the committee discussions, lawmaker Jin Seong-jun remarked, "It is also necessary to consider the rights and interests of smokers."
The committee instructed the Ministry of Strategy and Finance to investigate the actual sales status of synthetic nicotine and then report on the impact of the amendments to the Tobacco Business Act. They were instructed to report on market conditions, the damages to small businesses caused by regulations and taxes, forecasts of e-cigarette price fluctuations, the timing of enforcement, and future plans to grant tobacco sales rights.
As the reporting content grows vast, the long-term investigation is expected to delay the introduction of regulations on synthetic nicotine cigarettes. Critics argue that this neglects public health and allows the issue of rising youth smokers to remain unaddressed in order to secure the interests of specific groups selling synthetic nicotine e-cigarettes.
◇ Synthetic nicotine not classified as 'tobacco' under current law, escaping regulation and taxes
There are reports that strong opposition from the liquid tobacco industry, which prioritized 'survival rights,' influenced discussions at that time. Small business owners selling synthetic nicotine reportedly formed a 'group chatroom' to share personal contact information of lawmakers, subsequently sending text messages as part of collective action.
A source from the Planning and Finance Committee indicated, "It appears that after receiving a barrage of text messages from e-cigarette industry officials over the weekend, many lawmakers shifted to a 'cautious' stance on 'legal amendments.'"
A source from the office of lawmaker Jeong Tae-ho, who has been criticized for representing the interests of the synthetic nicotine cigarette industry, stated, "The lawmaker agrees that the definition of tobacco should be broadened to include synthetic nicotine." However, this source added, "We asked the Ministry of Strategy and Finance to confirm how many small businesses would be subject to such regulations if the law is amended, questioning whether the government does not need to establish measures for these synthetic nicotine cigarette operators."
However, there are counterarguments suggesting that it is mentioned to address damage to the synthetic nicotine cigarette industry, while they have profited sufficiently from exploiting regulatory gray areas.
Currently, synthetic nicotine e-cigarettes are not classified as tobacco under the Tobacco Business Act, so they are not subject to obligations and taxes levied on tobacco products. They are not subject to restrictions on sales to minors, the inclusion of warning images and texts aimed at promoting cessation, or sales location limitations.
As a result, vendors installing 'liquid type e-cigarette vending machines' near middle and high schools have recently emerged. This situation occurs because liquid-type e-cigarettes are legally classified as consumer goods.
Taxes are also not being applied. If e-cigarettes using synthetic nicotine were included under the tobacco law and taxed, it is reported that $3.8 trillion in taxes could have been collected over the period from 2021 to 2024.
There are also concerns about reverse discrimination against approximately 126,000 small business owners selling traditional tobacco. The Korean Association of Electronic Cigarette Industry stated, "Our members have received permits to designate tobacco retailers and are operating while adhering to legal distance restrictions. The longer the delay in regulating synthetic nicotine cigarettes, the more profits will accrue to sellers who engage in opportunistic practices. This indicates that reverse discrimination caused by policy failure will occur."
There are also observations within the Ministry of Strategy and Finance that the interest group opposing the classification of synthetic nicotine cigarettes as tobacco is a minority of synthetic nicotine manufacturers rather than small business owners. Director Hwang Soon-kwan stated, "The only group opposing the inclusion of synthetic nicotine cigarettes as tobacco is the Electronic Liquid Safety Association," and asserted that "since the supply of synthetic nicotine cigarettes will be cut off, the livelihoods of small businesses are not at risk; only a few importers who import the raw liquid will face direct impacts."
The National Assembly has been discussing amendments to the Tobacco Business Act to regulate synthetic nicotine cigarettes since the 20th National Assembly, but there has been no significant progress. In the 21st National Assembly, the amendment was put on hold due to the lack of clear investigative results proving the harmfulness of synthetic nicotine.
After the opening of the 22nd National Assembly, the Ministry of Health and Welfare announced research results indicating that harmful substances exist in considerable amounts in synthetic nicotine raw liquid, asserting the need for regulation. The announcement of the research results led to expectations of a quicker revision of the Tobacco Business Act, but backlash from the industry and opposition from some lawmakers continue.
◇ Synthetic nicotine has harmful substances comparable to those in natural nicotine
Is synthetic nicotine as harmful to the human body as natural nicotine? According to the final results of the research submitted by the Ministry of Health and Welfare, it was revealed that a significant number of carcinogenic and reproductive toxic substances exist in synthetic nicotine raw liquid.
According to the research report, in the analysis of residual levels of 69 harmful substances, 12,509 mg/L was detected in 45 categories of natural nicotine raw liquid, while 23,902 mg/L was found in 41 categories of synthetic nicotine raw liquid. Overall, the total amount of harmful substances in synthetic nicotine was greater than in natural nicotine.
The research report emphasized that due to the presence of multiple harmful substances in synthetic nicotine raw liquid, "synthetic nicotine needs to be regulated in the same manner as tobacco nicotine." It is also reported that the Ministry of Health and Welfare expressed the same opinion during subsequent reflections.
The Ministry of Strategy and Finance, which oversees the Tobacco Business Act, stated that reflecting these research results, it is appropriate to include synthetic nicotine in the definition of 'tobacco' under the Tobacco Business Act for regulation.
A source from the Ministry of Strategy and Finance remarked, "According to current laws, there is no way to intervene if e-cigarettes containing synthetic nicotine are sold to young people," emphasizing that "it is appropriate to incorporate them into tobacco regulations since they are essentially similar to tobacco."
Abroad, synthetic nicotine is also regarded as tobacco and subject to regulation. Currently, among the 38 member countries of the Organization for Economic Cooperation and Development (OECD), 36 countries, excluding South Korea and Japan, are regulating synthetic nicotine cigarettes as tobacco. In Japan, e-cigarette liquids themselves are banned without distinction between synthetic and natural.