Former BAT Korea CEO Acquitted in Second Trial on Charges of Evading $36.51 Million Taxes

BAT by 2FIRSTS.ai
Apr.29.2024
Former BAT Korea CEO Acquitted in Second Trial on Charges of Evading $36.51 Million Taxes
Former CEO of British American Tobacco Korea, Guy Andrew Meldrum, acquitted of tax evasion charges in Seoul's High Court.

According to a report from South Korean media N.News on April 25th, Guy Andrew Meldrum, former CEO of British American Tobacco Korea, who was accused of falsely declaring and smuggling a large quantity of cigarettes out of the country on the day before a tax increase to evade taxes, was acquitted by the Seoul High Court in his second trial.

 

The Seoul High Court, Criminal Division 5, handed down the above-mentioned judgment against the former CEO of BAT for violating the Specific Crimes Aggravated Punishment Act (tax evasion). The court stated, "In this case, although property transfer and cigarette transportation were carried out separately, it cannot be concluded that it was a sham transaction." They emphasized, "Without being able to determine the defendant's intentions of tax evasion and other reasons, the acquittal in the first trial is acceptable."

 

According to reports, on December 31, 2014 (the day before the cigarette tax increase), Mel Drum was accused of smuggling 24.63 million packs of cigarettes out of the South Gyeongsang Sichuan cigarette factory and making false declarations. He was sentenced in April 2019. Prosecutors believe that this action exploited the fact that cigarette taxes are levied based on the number of cigarettes at the time of factory delivery.

 

Prosecutors believe that he is suspected of evading taxes totaling 503 billion South Korean won ($36.51 million), including 146 billion South Korean won ($10.59 million) in national personal consumption tax, 248 billion South Korean won ($18 million) in local tobacco consumption tax, and 109 billion South Korean won ($7.91 million) in local education tax. Despite being acquitted in the first trial, prosecutors have continued to express doubts about this.

 

It is reported that Meierdrum had left the country before the investigation by the National Tax Bureau, and the first trial did not begin until April of last year. The former production and logistics manager of the company, who was also being tried in the same case, was acquitted by the Supreme Court in November 2022.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

2Firsts On-Site | CTIHK Showcases Nicotine Pouches, Heated Tobacco and Chinese Cigars at InterTabac 2026
2Firsts On-Site | CTIHK Showcases Nicotine Pouches, Heated Tobacco and Chinese Cigars at InterTabac 2026
At InterTabac 2026 in Dortmund, China Tobacco International (HK) Company Limited (CTIHK) is exhibiting across two separate booths in Hall 5 and Hall 4. Products observed by 2Firsts include heated tobacco products, nicotine pouches, Chinese cigars and tobacco leaf. Nicotine pouch products on display include TOOP, Shuangxi and Ashima.
Market
Sep.16
Altria Showcases Ploom, Marlboro Heated Tobacco Sticks and Non-Nicotine Energy Products at NACS Show 2026
Altria Showcases Ploom, Marlboro Heated Tobacco Sticks and Non-Nicotine Energy Products at NACS Show 2026
At the 2026 NACS Show, Altria displayed Ploom devices alongside imagery of Marlboro-branded heated tobacco sticks, while also featuring RIOT Energy and Proper Wild non-nicotine products. The booth showcased on! PLUS nicotine pouches, including 12 mg variants not listed among FDA-authorized products as of October 9, and NJOY e-cigarettes. Altria also presented convenience-store traffic figures highlighting its retail presence. 2Firsts examines the company's expanded product portfolio, non-nicotine business activities and the regulatory status of products displayed at the show.
EXPO
Oct.10
EU Commission Clarifies Vaping, Smokeless Nicotine Use in Proposed Cardiovascular Checks
EU Commission Clarifies Vaping, Smokeless Nicotine Use in Proposed Cardiovascular Checks
The European Commission has clarified to 2Firsts that its proposed cardiovascular health checks would assess smoking, vaping and the use of smokeless nicotine products as part of patients’ medical histories. The Commission also said Member States may organise additional checks within their healthcare systems. In the same response, it pointed to JRC research on e-cigarettes, heated tobacco products and nicotine pouches that has fed into the evaluation of EU tobacco legislation.
Nov.09
Product | SMOORE's VAPORESSO Introduces VAST Refillable Vape With Three Resistances in One Pod
Product | SMOORE's VAPORESSO Introduces VAST Refillable Vape With Three Resistances in One Pod
SMOORE-owned vaping brand VAPORESSO introduced the VAST refillable open-system vape in October 2026, featuring Tri-Core Mesh technology that integrates three resistance configurations—0.8Ω, 0.6Ω and 0.4Ω—within a single pod. The device supports different operating modes and e-liquid types. The standard version features a 10mL pod, while a TPD-labelled configuration combines a 2mL pod with an 8mL refill container. The device has a 1,600mAh battery and a maximum output of 30W. VAPORESSO claims up to six pod refills and a tested coil lifespan of up to 150,000 puffs. The UK's MHRA published a related device notification on October 12. The official MSRP is $25.90, compared with a $35.90 listing on VAPORESSO's direct store.
product
Oct.30
North Carolina Tightens Vape Product Directory Enforcement, Expands State and Local Powers as Violators Face Fines, Product Seizures and License Suspension or Revocation
North Carolina Tightens Vape Product Directory Enforcement, Expands State and Local Powers as Violators Face Fines, Product Seizures and License Suspension or Revocation
North Carolina has expanded enforcement of its vapor product directory rules, authorizing more state and local law enforcement participation and establishing a task force led by the State Bureau of Investigation. The legislation requires at least one unannounced compliance inspection annually for retailers, distributors and wholesalers handling covered products. Penalties effective October 1, 2026, include civil fines of $500–$750 for a first violation and $1,000–$1,500 for repeated violations within 12 months, along with potential license suspension or revocation. Manufacturers may face penalties of $10,000 per unlisted product. The measures strengthen the product directory system established in 2024.
Regulations
Oct.28
Turning Point Brands Q3 Modern Oral Net Sales Rise 103% to $74.4 Million as Attributable Profit Falls 81%
Turning Point Brands Q3 Modern Oral Net Sales Rise 103% to $74.4 Million as Attributable Profit Falls 81%
Turning Point Brands (TPB) reported third-quarter 2026 Modern Oral net sales of $74.4 million on November 9, up 102.9% year over year and representing 49.2% of consolidated net sales. Total company net sales rose 27.0% to $151.1 million, while net income attributable to TPB declined 81.4% to $3.93 million. The company is expanding the US retail presence of its FRE and ALP nicotine pouch brands and expects its Modern Oral chain-store footprint to grow by more than 70% during 2026. Selling, general and administrative expenses increased 69.1% to $75.3 million, while PMTA-related expenses reached approximately $3.15 million and manufacturing start-up costs totaled about $593,000. ALP plans to open a branded pop-up in New York City's SoHo neighborhood on November 13, alongside a marketing campaign extending into January 2027. TPB owns 50% of ALP but consolidates the venture in its financial statements.
company
Nov.11