Why the Sugar Levy on High-Sugar Foods Is Drawing Intense Attention

Interest is surging in the "sugar levy" that President Lee Jaemyung brought up on social media (SNS) on January 28.

The sugar levy refers to a charge imposed on foods that contain a high amount of sugar. It mainly targets products with excessive sugar content such as carbonated drinks, snacks, and processed foods. As metabolic diseases like obesity and diabetes have rapidly increased, the levy is being discussed as a policy tool to improve public health and strengthen public healthcare. The idea is to raise prices so that consumers are naturally induced to buy and consume less.

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The sugar levy is often used interchangeably with the term "sugar tax," but from a legal standpoint it is completely different in nature from a tax. The biggest difference lies in its "specific purpose." Taxes are collected and spent to secure financial resources needed for the overall operation of the state, whereas levies are imposed only for a specific purpose and can be used solely for that purpose.

For example, the "environmental improvement levy" is imposed on operators of facilities that cause environmental pollution, and the money collected in this way can only be used for environmental improvement projects. Likewise, if a sugar levy is collected from beverage, ice cream, and snack manufacturers and vendors, those funds can be used only for specific health and welfare projects such as obesity prevention campaigns.

The controversy over the sugar levy continues across the medical, public health, industrial, civil society, legal, and political sectors.

Supporters emphasize that it can reduce the social costs arising from excessive sugar consumption, such as obesity and diabetes. In line with the debate on the sugar levy initiated by President Lee, the ruling Democratic Party of Korea is also pushing hard for legislation to introduce the sugar levy. On February 3, Democratic Party lawmaker Lee Soojin sponsored an amendment to the National Health Promotion Act that would impose and collect a sugar levy of up to 28,000 won depending on the amount of added sugar.

Child and adolescent obesity has been consistently pointed out as a social problem over the past 10 years. According to sample statistics from student health examinations, as of 2024, the obesity rate among elementary school students increased 1.67 times compared with 2015, and among middle school students it increased 1.46 times. Compared with 2021, the rates nearly doubled, rising 1.73 times and 1.9 times, respectively.

The causes of rising obesity are complex, but excessive intake of sugar is cited as one of the key drivers of the increase in obesity rates. A National Health and Nutrition Examination Survey conducted from 2019 to 2021 found that 1 out of 3 people (34% to 35.2%) between the ages of 3 and 34 consumed excessive amounts of sugar, and the largest single source was carbonated drinks, accounting for 16% to 17%. Among Korean high school students, 53.4% consumed sugar-sweetened beverages at least three times a week in 2022; of this, carbonated drinks accounted for 36.4% and energy drinks for 15%.

Concern over excessive sugar intake is already an international issue. In its 2015 guidelines, the World Health Organization (WHO) recommended that both adults and children reduce their intake of free sugars to less than 5% of total energy intake, or about 25 grams per day. The United Kingdom introduced an industry levy on sugar-sweetened beverages in 2018, and a study found that by 2020, two years after implementation, sugar intake from carbonated drinks among UK residents had decreased by about 20%.

At a sugar levy forum held at the National Assembly on February 10, Park Eunchul, a professor at the Institute of Health Services Research at Yonsei University, said, "The daily sugar supply in Korea is 140 grams, which is 2.8 to 5.6 times the recommended amount, and it is increasing by 2.2 grams every year," adding, "The rate of overweight and obesity is 36.5%, and it is increasing by 0.39 percentage points every year. Countries with a high sugar supply have higher obesity rates," stressing the need to introduce a sugar levy.

Opponents are concerned about rising prices and the burden on low-income groups. Since sugar is a raw material used in almost all processed foods, industry and some civil society groups warn that it could push up overall food prices. In Korea, discussions on introducing a sugar levy have been attempted several times, but they have repeatedly failed due to opposition from the food industry and consumer groups.

There are also concerns that it could become a burden for low-income groups, whose food expenses account for a large share of their income. Critics argue that a sugar levy, even if introduced in the name of health, could instead reduce the disposable income of vulnerable groups and worsen their diets. For this reason, some argue that the scope of application of the sugar levy should be kept to a minimum. This is why there are calls for alternatives such as excluding infant formula and medical foods from the taxable items.

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