The related industry expressed frustration as a bill that defines and regulates liquid electronic cigarettes made from synthetic nicotine as 'tobacco' was once again left unresolved.
On the 18th, the National Assembly's Planning and Finance Committee's Subcommittee on Economic Finance held a meeting to address the amendment to the Tobacco Business Act, but no conclusions were reached.
The day before, the ruling party's secretary, Representative Park Soo-young, and the opposition party's secretary, Representative Jung Tae-ho, reportedly agreed to pass the amendment to the Tobacco Business Act that defines synthetic nicotine as tobacco during a closed-door meeting, but faced opposition from some members and failed to clear the subcommittee. The committee had also not approved the amendment during a previous subcommittee meeting held on the 10th.
It was reported that the subcommittee failed to reach an agreement while negotiating whether to allow retailers of liquid electronic cigarettes to sell combustible cigarettes after the grace period for distance restrictions among them.
The ten amendments to the Tobacco Business Act, proposed by Representative Park Seong-hoon of the People Power Party and others, aim to expand the range of tobacco ingredients from 'tobacco leaves' to 'tobacco and nicotine.' Until now, synthetic nicotine, produced by synthesizing chemicals, was not legally considered tobacco and therefore was not subject to regulations applicable to conventional tobacco.
As the regulation went unanswered, the electronic cigarette industry expressed disappointment. Kim Do-hwan, vice president of the Electronic Cigarette Association, which has shown support for the regulation, stated, "It seems that the National Assembly is weighing the health rights of the public against the interests of online retailers who will suffer some damage," and emphasized, "It is frustrating that a reasonable outcome has yet to emerge."
The Electronic Cigarette Association argued that the longer the regulation is delayed, the more profit will be made by sellers operating in a legal gray area, which will lead to reverse discrimination against those operating legally. The association is an organization with approximately 670 members involved in the manufacture, import, and distribution of electronic cigarettes.
Kim noted, "No business wants to be regulated," but added that "the social side effects have become too significant due to synthetic nicotine being excluded from tobacco regulations, and if this continues, there will be a crisis regarding the survival of the market, so it is in the spirit of self-regulation that we are willing to accept regulation."
The global tobacco company British American Tobacco (BAT), which launched the synthetic nicotine electronic cigarette "Nomad" last year, also supports the regulation. BAT previously stated, "We agree that the same regulations should apply to synthetic nicotine tobacco as to regular tobacco, and we support the introduction of appropriate regulations."
Another representative from an electronic cigarette sales company commented, "As sellers of synthetic nicotine are selling liquid electronic cigarettes through online platforms, PC rooms, and vending machines, the perception that there is an issue with electronic cigarettes themselves is spreading," adding, "While there is a global discussion about the side effects of liquid electronic cigarettes, they are not even recognized as tobacco in Korea. Fair market conditions need to be established through the preparation of relevant legislation."
The import volume of synthetic nicotine, which is in a regulatory gray area, is steadily increasing. According to data obtained by Representative Park Seong-hoon from the Korea Customs Service, the import volume of synthetic nicotine increased from 98 tons (t) in 2021 to 121 t in 2022 and 216 t in 2023. The import volume for last year from January to September was 316 t.
The schedule for the next discussions on the amendment to the Tobacco Business Act has yet to be determined. A representative from the Ministry of Economy and Finance noted to ChosunBiz, "It is the government's consistent position that it is appropriate to regulate synthetic nicotine electronic cigarettes like regular tobacco to enhance public health rights," adding, "We will continue to persuade for the legal amendment."