Liquid E-Cigarette Regulation Bill Moves Swiftly... Passes Strategy and Finance Committee Today

Expanding the Definition of Tobacco from "Tobacco Leaves" to "Nicotine"
3,000 to 4,000 Retailers Nationwide Affected
Lack of Buffer Measures Compared to Overseas

Legislative efforts to regulate liquid-type e-cigarettes containing synthetic nicotine are gaining momentum. Although regulation of synthetic nicotine began in 2016, it had failed to pass the National Assembly for nine years. However, after passing the first legislative hurdle in the National Assembly's standing committee subcommittee on September 22, the bill is now set to be voted on in the full standing committee meeting just four days later.

On September 25, the National Assembly's Strategy and Finance Committee will hold a full session to process an amendment to the Tobacco Business Act. The amendment expands the definition of tobacco from "tobacco leaves" to "tobacco leaves and nicotine," thereby classifying liquid e-cigarettes made with synthetic nicotine as tobacco.

Under the current Tobacco Business Act, tobacco is defined as "products made wholly or partly from tobacco leaves, suitable for smoking, sucking, inhaling as vapor, chewing, or smelling." As a result, liquid-type e-cigarettes or synthetic nicotine products made from tobacco stems or roots have been excluded from tobacco regulations such as tobacco taxes and warning labels.

Accordingly, the amendment defines tobacco as including both tobacco leaves and nicotine, and introduces a new provision allowing local government heads to designate sellers.

A smoking area in downtown Seoul. Photo by Yonhap News Agency

Liquid e-cigarettes have gained popularity in the startup market due to their ability to combine various flavors, aromas, and nicotine concentrations. With initial investments ranging from 20 million to 50 million won, they have attracted attention as a low-capital startup item among people in their 20s and 30s. Recently, stores using unmanned vending machines have spread, forming a startup trend similar to unmanned ice cream shops, photo booths, and claw machine arcades. There are currently 3,000 to 4,000 retailers nationwide selling synthetic nicotine, and it is estimated that about 60% of them have not been designated as tobacco retailers.

To minimize the impact on small business owners, the amendment includes several protective measures. First, the amendment will take effect six months after its promulgation, and an additional provision stipulates that the new definition of tobacco will only apply to manufacturing and import declarations made after the law goes into effect.

A smoking area in downtown Seoul. Photo by Yonhap News Agency

In addition, the current 50-meter distance restriction for designating tobacco retail stores will be suspended for two years to prevent a wave of mass closures. Support for business conversion or closure will be provided through small business policy funds, and the imposition of surcharges on synthetic nicotine e-cigarettes will also be temporarily deferred.

The Strategy and Finance Committee also included an "additional opinion" stating that, if small-scale manufacturers or distributors of synthetic nicotine require business conversion due to the expanded definition of tobacco, the government should prepare support measures for small business owners. The government is also required to establish a taxation and surcharge system that comprehensively considers the smoking effects and tax fairness of synthetic nicotine.

Furthermore, the government is to conduct a risk assessment of nicotine-like substances intended for human inhalation. Based on the results, the government will decide whether to allow the distribution and sale of such products and consider regulatory measures for the distribution of nicotine raw materials.

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