'Controversy Over Harmfulness' Hits Hard... Juul Labs Withdraws from Korean Market After Just One Year

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] Juul Labs, the No.1 e-cigarette company in the United States, is finally withdrawing from the Korean market. It has been only one year since its entry into the Korean market. Amid controversies over the harmfulness of liquid-type e-cigarettes, it appears that Juul Labs has concluded there is no chance of success in the Korean market.

Juul Labs Korea announced on the 6th through an official statement that it will withdraw from the domestic market. Juul Labs Korea explained, "Earlier this year, the company underwent restructuring to secure business sustainability, focusing on significant cost reduction and efforts to innovate the product portfolio. However, as it is expected that such innovation will be difficult to proceed as planned, we have reached the conclusion to discontinue our business in Korea."

This comes seven months after the Ministry of Health and Welfare issued a "strong recommendation to stop use" for liquid-type e-cigarettes. At that time, the Ministry made this decision following cases of severe lung injuries caused by liquid-type e-cigarettes in the United States. Subsequently, convenience store chains, which account for most of the tobacco distribution in Korea, stopped selling Juul Labs products, and Juul Labs Korea downsized its headquarters staff from about 100 to 7 by restructuring all 38 sales employees at the beginning of the year, focusing on 'cost reduction.'

Additionally, Juul Labs Korea closed three flagship stores located in Seoul’s Garosugil, Gwanghwamun, and Yeonnam-dong, and raised product prices by 10,000 won as part of profitability improvement measures to 'hold on' until regulations are eased. However, it ultimately could not endure the business slump and gave up on the domestic business.

Juul Labs Korea emphasized, "We prioritize cooperating with employees affected by the business withdrawal process, supporting them, and treating them fairly."

This content was produced with the assistance of AI translation services.