South Korea Moves Against Synthetic Nicotine Regulatory Gap as Three Companies Face Tobacco Business Act Probe

May.06
South Korea Moves Against Synthetic Nicotine Regulatory Gap as Three Companies Face Tobacco Business Act Probe
South Korea’s Ministry of Finance and Economy said on May 4 that it requested the Daejeon Metropolitan Police Agency and Gyeonggi Nambu Provincial Police Agency to investigate three sales companies on suspicion of violating the Tobacco Business Act.

Key Takeaways

  • South Korea’s Ministry of Finance and Economy requested police investigations into three companies on May 4.
  • The companies are suspected of manufacturing tobacco without permission and selling products through prohibited mail-order and electronic transactions.
  • The ministry said the companies were not designated as tobacco retailers.
  • Products involved include high-concentration nicotine solutions and flavoring agents for liquid manufacturing.
  • If violations of the Tobacco Business Act are confirmed, the companies could face up to three years in prison or fines of up to KRW 30 million, or about USD 20,437.

2Firsts, May 6, 2026 

 

According to chosun, South Korea’s Ministry of Finance and Economy requested the Daejeon Metropolitan Police Agency and Gyeonggi Nambu Provincial Police Agency to investigate three sales companies on suspicion of violating the Tobacco Business Act.

 

Companies selling high-concentration nicotine solutions online are expected to face investigation

 

The report said companies that sold high-concentration nicotine solutions, whose online sales were prohibited starting last month, are expected to face police investigations.

 

According to the Ministry of Finance and Economy, the three companies are suspected of manufacturing tobacco without permission and selling it through prohibited mail-order and electronic transaction methods. 

 

The ministry also said the companies were not designated as tobacco retailers.

 

Ministry confirmed online sales of the products

 

The Ministry of Finance and Economy confirmed that the companies sold high-concentration nicotine solution products and flavoring agents for liquid manufacturing on online sites.

 

The ministry also found evidence that advertisements promoted mixing nicotine solution products with liquids and encouraged consumers to easily blend, dilute and inhale them for e-cigarette use.

 

Violations could carry prison terms or fines

 

If violations of the Tobacco Business Act are acknowledged, the companies could face imprisonment of up to three years or fines of up to KRW 30 million, or about USD 20,437 based on an exchange rate of KRW 1,467.94 per U.S. dollar.

 

The report said the revised Tobacco Business Act, implemented on the 24th of last month, expanded the definition of tobacco raw materials from the previous “leaves” to “tobacco or nicotine.” 

 

As a result, synthetic nicotine liquid e-cigarettes that had been in a regulatory blind spot were brought under the regulatory framework.

 

This is the first investigation request after the legal revision

 

The report said the investigation request marks the first case following the revision of the law.

 

The Ministry of Finance and Economy said it will continue monitoring online distribution trends in cooperation with related institutions and respond strictly by reporting suspected violations to investigative agencies.

 

Ministry urged consumers to be cautious

 

The ministry also emphasized that consumers should be cautious not to purchase and use high-concentration nicotine solutions sold online without authorization.

 

Image Source:chosun

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

Product | BAT Expands VELO Peach Ice Medium to FamilyMart Stores Nationwide in Japan
Product | BAT Expands VELO Peach Ice Medium to FamilyMart Stores Nationwide in Japan
British American Tobacco Japan (BAT Japan) expanded VELO Peach Ice Medium to FamilyMart stores nationwide in Japan from September 7, 2026. The oral tobacco product first launched on July 6 and had previously been sold through VELO's official online store, glo Store Ginza and tobacco retailers. It combines peach flavor with menthol cooling at a Medium strength level and is priced at JPY 360. Japanese tobacco retailers list 15 pouches per pack. The move adds the new SKU to an existing nationwide FamilyMart distribution network for VELO rather than marking the brand's first entry into the convenience-store chain.
Sep.15
Product | JT Refreshes Ploom CUBE Design and Expands Japan Retail Distribution, Targeting Younger Men and Female Users
Product | JT Refreshes Ploom CUBE Design and Expands Japan Retail Distribution, Targeting Younger Men and Female Users
Japan Tobacco (JT) launched a refreshed Ploom CUBE design in Japan on September 8, 2026, with broader convenience-store and tobacco-retail distribution planned from October 13. The updated device retains the existing Rounded Cube form and heating platform while replacing four previous body colors with Pebble White and Cobalt Black. JT is also introducing new Front Panels and Fabric Back Covers, although the new accessories are not compatible with the previous Ploom CUBE design. The company says the update is intended to broaden appeal among younger male and female users.
Sep.09
Product | PMJ Adds Bold Ruby to IQOS ILUMA i Lineup in Japan, Convenience-Store Rollout Starts Sept. 29
Product | PMJ Adds Bold Ruby to IQOS ILUMA i Lineup in Japan, Convenience-Store Rollout Starts Sept. 29
Philip Morris Japan (PMJ) launched Bold Ruby as a new regular color for the IQOS ILUMA i and IQOS ILUMA i ONE in Japan on September 16, 2026, priced at JPY 6,980 and JPY 3,980, respectively. Initial sales began through IQOS online and physical channels, with convenience stores and selected tobacco retailers set to follow from September 29. Bold Ruby is a regular rather than limited-edition colorway and is available for the ILUMA i and ILUMA i ONE, but not the ILUMA i PRIME. The release does not involve changes to the devices' core hardware or functions.
Sep.22
South Korea Constitutional Court Upholds Volume-Based E-Liquid Tax, With Challenged Rates at KRW 370 and KRW 628 per Milliliter
South Korea Constitutional Court Upholds Volume-Based E-Liquid Tax, With Challenged Rates at KRW 370 and KRW 628 per Milliliter
South Korea's Constitutional Court has upheld fixed taxes on nicotine-containing e-cigarette liquids based on solution volume, ruling that challenged provisions imposing KRW 370 per milliliter in individual consumption tax and KRW 628 per milliliter in tobacco consumption tax do not violate the Constitution. The cases stemmed from historical disputes involving importers that reported nicotine as being extracted from tobacco stems rather than leaves. South Korea has since broadened its tobacco definition to include synthetic nicotine, while current tax laws provide reduced rates for certain products not derived from tobacco.
Sep.18
From Product Innovation to Integrated Solutions: NEXTECH Expands Its Global Heated Tobacco Solutions
From Product Innovation to Integrated Solutions: NEXTECH Expands Its Global Heated Tobacco Solutions
NEXTECH launched its NEXE Pro circumferential-heating tobacco stick globally at InterTabac 2026, as the company expands from product innovation into broader heated tobacco solutions. Amid intensifying competition across global HTP markets, NEXTECH is strengthening its R&D, manufacturing and pre-launch support capabilities to serve different types of business customers.
Industry Insight
Sep.15
Trump Names Darrell Scott as CDC Tobacco Health Adviser, Citing Tobacco Risks and Harm-Reduction Solutions
Trump Names Darrell Scott as CDC Tobacco Health Adviser, Citing Tobacco Risks and Harm-Reduction Solutions
U.S. President Donald Trump has named Pastor Darrell Scott to serve as an adviser on tobacco health issues on the Centers for Disease Control and Prevention’s Advisory Committee to the Director. Trump said Scott would focus on the burden of tobacco-related disease and help examine ways to protect Americans from dangerous tobacco products while supporting solutions that reduce harm. Scott’s public career has largely centered on faith leadership, community advocacy and politics.
Sep.02