After Nine Years, the Tobacco Business Act Passed the Strategy and Finance Committee... Why Has It Stalled Again?

The amendment to the Tobacco Business Act, which aims to strengthen regulations on electronic cigarettes made with synthetic nicotine, has once again stalled at the final legislative hurdle-the Legislation and Judiciary Committee of the National Assembly. After nine years of legislative debate, hopes for the bill’s passage had risen significantly when it finally cleared the Planning and Finance Committee last September, but it now appears unlikely to pass in the immediate future. While members of the Legislation and Judiciary Committee from both ruling and opposition parties cited the “timing of regulation” as the main issue, there are also voices suggesting that industry lobbying may have played a significant role.

According to political sources on November 13, the Legislation and Judiciary Committee decided at its plenary session the previous day to hold the amendment to the Tobacco Business Act for further discussion. The amendment expands the definition of tobacco from “the leaf of the tobacco plant,” which is the source of natural nicotine, to “tobacco or nicotine.” If the bill passes, synthetic nicotine-considered a loophole for youth smoking-will also be included in the tobacco category, meaning it will be subject to taxation and stricter sales regulations.

On November 12, at the plenary meeting of the Legislation and Judiciary Committee held at the National Assembly in Yeouido, Seoul, ruling and opposition party members voted to conclude the alternative debate on the partial amendment bill of the Tobacco Business Act. Photo by Yonhap News

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Although the amendment is directly related to youth health rights, discussions have not been easy. Since the legislative debate began in 2016, repeated industry opposition has led to its failure multiple times. It was only after a government-commissioned study in November last year confirmed the harmfulness of synthetic nicotine concentrate that both the Ministry of Health and Welfare and the Ministry of Economy and Finance agreed on the need for regulation, reigniting the debate. However, the bill faced multiple delays and difficulties even at the Planning and Finance Committee stage. When the amendment finally passed the plenary session of the Planning and Finance Committee on September 25, Park Sunghoon, a lawmaker from the People Power Party, remarked, “The passage of the amendment after nine years is a very encouraging result for the protection of youth health and the establishment of a new distribution order.”

The official reason given by lawmakers for blocking the bill at the Legislation and Judiciary Committee the previous day was the issue of when the taxation standard should be applied. The amendment stipulates that it will take effect six months after promulgation, and the taxation standard for electronic cigarettes and similar products is set as the “time of manufacture.” In this case, products stockpiled using ingredients imported in bulk before the amendment would be difficult to regulate. Kim Gipyo, a Democratic Party lawmaker, pointed out, “They say it’s possible to manufacture enough for 100 years,” adding, “There is a loophole.”

However, some believe that the renewed delay in handling the Tobacco Business Act is actually due to industry backlash and lobbying efforts. One lawmaker commented in a phone call, “There are widespread rumors that some have been lobbied.” The contentious issue of the taxation standard was also discussed at the standing committee stage. Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol stated the previous day, “After much discussion in the Planning and Finance Committee, we set the standard as the time of manufacture. Regulation is necessary, and I hope implementation will be expedited.”

Some in the government are concerned that if the amendment to the Tobacco Business Act is referred to a subcommittee, it could be stalled for an extended period. Na Kyungwon, a lawmaker from the People Power Party, opposed the amendment the previous day, insisting, “It should be sent to the second subcommittee for further discussion.” The second subcommittee reviews bills from other standing committees, but with no set review period, it is commonly referred to as the “graveyard of bills.”

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