Investigation on Fraudulent Sales of E-Liquid & Tax Evasion in South Korea

Regulations by 2FIRSTS.ai
Dec.22.2023
Investigation on Fraudulent Sales of E-Liquid & Tax Evasion in South Korea
South Korean police investigate companies suspected of fraudulently altering e-liquid components to evade taxes. Owner and advisor among suspects.

According to a report by the South Korean SBS website, the Korean police have initiated an investigation into several companies suspected of fraudulently manufacturing and selling e-liquid. These companies allegedly altered the main components of e-liquid and engaged in tax evasion. The police have filed a case for violation of tobacco business laws against company A, a e-liquid retailer, as well as its collaborating supplier and consultant Mr. B, among five suspects.

 

The main ingredient of e-liquid, nicotine, can be divided into natural nicotine and synthetic nicotine. Currently, A company is accused of fraudulent behavior, allegedly selling natural nicotine disguised as synthetic nicotine.

 

According to current regulations, the sale of natural nicotine is subject to tobacco consumption tax, with a corresponding tax rate of 1,799 Korean won per milliliter. However, synthetic nicotine is not classified as tobacco and is therefore exempt from taxation. The police suspect that the aforementioned company is using this rule to evade taxes and is currently conducting a thorough investigation.

 

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

Kazakhstan Proposes Harsher Penalties for E-Cigarettes, Including Large-Scale Storage
Kazakhstan Proposes Harsher Penalties for E-Cigarettes, Including Large-Scale Storage
Kazakhstan to toughen penalties for e-cigarette violations, proposal includes increased fines for large-scale storage, pending parliament approval.
May.27 by 2FIRSTS.ai
GFN Experts Warn: Misinformation is Killing Smokers
GFN Experts Warn: Misinformation is Killing Smokers
At the 2025 Global Forum on Nicotine in Warsaw, experts warned that misinformation about nicotine and safer alternatives is misleading the public and healthcare professionals, hindering smokers’ access to life-saving products.
Jun.27
Swiss Parliament Advances Ban on Disposable E-Cigarettes; Motion Passed by National Council
Swiss Parliament Advances Ban on Disposable E-Cigarettes; Motion Passed by National Council
The Swiss National Council has passed a proposal to ban disposable e-cigarettes, which is now awaiting further review by the Senate.
Jun.05 by 2FIRSTS.ai
South Africa Market Insights: Distributor MISTLABS to Speak at 2Firsts Global NGP Trends Forum
South Africa Market Insights: Distributor MISTLABS to Speak at 2Firsts Global NGP Trends Forum
On June 6, 2Firsts will host the "Global NGP Market Trends Forum" in Shenzhen, with a focus on e-cigarette markets such as South Africa. The co-founder of MISTLABS, a South African e-cigarette distributor, will share the latest trends and practical insights from the South African market.
May.30 by 2FIRSTS.ai
Wisconsin Vape Distributor Sues State Over New Fines for Unauthorized Products
Wisconsin Vape Distributor Sues State Over New Fines for Unauthorized Products
Wisconsin vape distributors are suing the state over a new law fining sales of FDA-unauthorized products, effective July 1, with $1,000 daily penalties for non-listed items from September. They argue it’s unconstitutional and threatens the industry. Similar laws exist in 14 states, though Iowa’s was halted. Experts urge balancing vaping’s quit-smoking potential with youth prevention as U.S. teen vaping rates decline.
Jul.11 by 2FIRSTS.ai
Product Roundup | Nicotine Oral Films and Lozenges Featured at Dubai Vape Show
Product Roundup | Nicotine Oral Films and Lozenges Featured at Dubai Vape Show
As the event’s official media partner, 2Firsts conducted in-depth visits across the exhibition halls and observed that several brands launched nicotine oral films and other innovative oral products.
Jun.20