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Tag: South Korea

  • Drug-Laced Vape Ring Busted in Malaysia

    Drug-Laced Vape Ring Busted in Malaysia

    Malaysian authorities, working closely with South Korea’s National Intelligence Service (NIS), dismantled an international drug ring accused of attempting to smuggle 2 million doses of etomidate- and cocaine-laced e-cigarettes into South Korea. Authorities seized nearly 5,000 cartridges and thousands of packaging boxes. Etomidate, a potent anesthetic, can cause severe health risks or death when abused.

    Four suspects, including the 31-year-old Singaporean ringleader, were arrested in June in Malaysia. The group allegedly aimed to distribute 20,000 liquid e-cigarettes monthly via Malaysia and other transit points. The ringleader had set up a fake headhunting business in Seoul’s Gangnam district, targeting South Korean students studying in Singapore to build a distribution network. The NIS began tracking the operation in 2023.

  • BAT COO Says Korea Key to Smokeless Expansion

    BAT COO Says Korea Key to Smokeless Expansion

    British American Tobacco (BAT) said it is focusing on South Korea as a strategic hub for its global smokeless transformation, citing the country’s tech-savvy consumers, dynamic regulatory landscape, and innovation-driven ecosystem. BAT Group Chief Operating Officer Johan Vandermeulen said Korea plays a vital role beyond sales, acting as a testing ground for the company’s next-generation products, during an interview with The Korea Herald.

    “Korea offers a unique blend of sophisticated consumers, cutting-edge technology, and a dynamic regulatory environment that makes it an ideal testing ground for our next-generation products,” said Vandermeulen.

    Vandermeulen called the company’s Sacheon facility “one of the best” in the global BAT network, and said with Korea now the second-largest heated tobacco market in the world (behind Japan), BAT is accelerating investments in product innovation, localization, and advanced manufacturing. BAT is also expanding its vapor brand VUSE in Korea with strict ingredient and marketing standards, while eyeing future opportunities for nicotine pouches, its fastest-growing category globally.

    Vandermeulen emphasized that tobacco harm reduction, responsible marketing, and clear, fair regulation are central to the company’s vision, but warned about the dangers of illicit vaping products, which he said undermine public trust and legitimate efforts.

    “We believe vaping has a vital role in encouraging adult smokers, who would otherwise continue smoking, to switch completely to smokeless alternatives,” Vandermeulen said. “But the category can only thrive if market order is preserved.”

  • Korea Seeks to Restrict Synthetic Nicotine

    Korea Seeks to Restrict Synthetic Nicotine

    South Korea is working to restrict the use of synthetic nicotine e-cigarettes, reports The Korea Times.

    Korea’s current law defines tobacco products as those made from the leaves of tobacco plants. Some companies saw this as an opportunity to sell products using synthetic nicotine created in a lab rather than from tobacco leaves.

    Recently, BAT Rothmans Far East, launched its synthetic nicotine vape product, Nomad Sync 5000, which currently does not meet the definition of “tobacco-leaf products” and thus avoids multiple taxes and special charges.

    In recent months, lawmakers have filed more than a dozen bills to amend the law.

    The latest bill, proposed by lawmakers of the opposition Democratic Party of Korea on Nov. 26, aims to redefine what constitutes tobacco products, seeking to include vapes that use synthetic nicotine.

    Another group of lawmakers are attempting to require sellers to put warnings on vape packaging just as cigarette sellers do, in addition to the expansion of the legal tobacco definition.

     The Ministry of Health and Welfare has vowed to support such legislation efforts.

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  • Korea Expands E-cigarette-Only Lounges

    Korea Expands E-cigarette-Only Lounges

    Image: Yakobchuk Olena

    South Korea is expanding the number of vaping-only lounges to accommodate the growing popularity of e-cigarettes, reports Korea Bizwire.

    E-cigarette-exclusive lounges have emerged at airports and commercial hubs, catering to vapers who wish to avoid the strong odors and cramped conditions of traditional smoking booths.

    Incheon Airport, for instance, has converted three existing smoking areas to vaping-only lounges by, among other things, removing ashtrays.

    According to the airport, these lounges serve an average of 4,000 users daily, with a satisfaction rate of 4.2 out of 5, as measured by a September survey. Incheon Airport is the only top-10 international airport to provide exclusive e-cigarette smoking lounges.

    “We prioritized convenience for both traditional and e-cigarette smokers by considering accessibility and foot traffic in our lounge locations,” an airport spokesperson said.

     Lotte World Tower offers dedicated e-cigarette areas, as do shopping centers like Starfield Suwon and Starfield City Wirye. Local governments in districts such as Gangnam and Seongdong have also piloted separate smoking booths for traditional and e-cigarette users.

  • KT&G Steps up Investment in Indonesia

    KT&G Steps up Investment in Indonesia

    Photo: KT&G

    KT&G will invest KRW600 billion ($454 million) and hire about 1,000 people in Indonesia. The company’s local operations will serve not only Indonesia but also the Middle East and other markets in the Asia-Pacific region.

    “KT&G chose Indonesia as the company’s center of production for the Asia-Pacific market,” KT&G Indonesia’s president director, Jeong Yun-sig, told JoongAng Daily. Indonesia is KT&G’s biggest market outside Korea, accounting for 22.6 percent of the tobacco company’s total exports as of 2023.

    KT&G entered Indonesia in 2011, when it bought a local tobacco company. As of 2023, the company had sold 9.55 billion cigarettes in the country, propelling it to the No. 4 spot among tobacco manufacturers in Indonesia, ahead of multinationals such as British American Tobacco and Japan Tobacco International.

     In April, KT&G broke ground for two additional Indonesian factories. Upon completion, company will have a production capacity in Indonesia of 35 billion cigarettes annually.

     “We have consistently invested in the Indonesian market, building a local R&D center and hiring experts for localization efforts,” Jeong Yun-sig said. “The localized version of Esse and new brands for the Indonesian market worked well for the company.”

  • Korea Urged to Regulate Vapes as Tobacco

    Korea Urged to Regulate Vapes as Tobacco

    Photo: Teo

    Health advocates are calling on South Korea to regulate e-cigarettes as tobacco products, reports the Maeil Business Newspaper.

    The current law does not classify vapes as cigarettes, which means they are exempt from many of the regulations that apply to tobacco products. For example, vaping companies do not have to print graphic health warnings on their products or charge their customers tobacco consumption tax.

    Article 2 of the Tobacco Business Act defines “cigarettes” as products suitable for smoking, sucking, inhaling, chewing or smelling.

    The calls for expanding the legal definition follow concern about the growth of unmanned e-cigarette stores in Seoul, which are said to have inadequate age-verification procedures.

    A survey by the Seoul metropolitan government revealed that the number of unmanned e-cigarette stores has quadrupled since April.

    According to data from the Korea Centers for Disease Control and Prevention, three out of 10 youth smokers started smoking e-cigarettes from 2019 to 2023. Six out of 10 teenagers who started with e-cigarettes are currently smoking regular cigarettes, the center said.

    Bills to regulate e-cigarettes were tabled in the 20th and 21st National Assembly but failed to cross the plenary session threshold in each instance.

  • KT&G Volunteers Help With Harvest

    KT&G Volunteers Help With Harvest

    Photo: KT&G

    KT&G volunteers assisted Boeun County tobacco farmers with their tobacco harvest on July 19.

    Farmers in South Korea have been facing labor shortages due to the ongoing decline in rural populations and aging demographics. The situation is particularly critical during the tobacco harvest season in July and August, which is labor intensive and largely unmechanized.

    To alleviate the burden, KT&G volunteers have been visiting tobacco farms annually since 2007. After assisting with transplanting tobacco seedlings in the spring, the employees also contribute to the tobacco leaf harvest.

    Additionally, KT&G has been carrying out welfare improvement projects for tobacco farmers. In June, the company provided KRW420 million ($303,829.67) to support tobacco farmers with health checkup costs, children’s education fees and fuel-saving curing devices. Since 2013, the company has provided KRW4.27 billion, benefiting 15,212 farmers.

    “The company annually conducts employee volunteer activities to support stable farming operations for tobacco farmers facing labor shortages,” said Jung-Ho Kim, head of KT&G’s SCM division, in a statement. “We will continue our support for mutual prosperity with farmers.”

  • VLN Relaunch in Korea

    VLN Relaunch in Korea

    Image: Tobacco Reporter archive

    22nd Century Group announced a new agreement for full-scale commercial rollout of its VLN reduced-nicotine content cigarettes in South Korea. The new agreement with 22nd Century’s local partner, Nico-Tech Korea Inc., follows an initial test launch conducted in 2022 that identified product updates needed to align with local South Korean cigarette characteristics and appeal to the specific preferences of adult smokers in Korea.

    “South Korea is a unique market characterized by high smoking rates and a corresponding high commitment from its government to reduce the harms of smoking,” said Larry Firestone, chairman and CEO, in a statement. “Based on the pilot launch in 2022, we made key product modifications to better align with specific characteristics of combusted cigarettes preferred by South Korea’s adult smokers. We have made those changes and are now ready to fully enter the market with VLN export shipments to South Korea anticipated to begin later this year.

    “This relaunch with our original partner, Nico-Tech, demonstrates their commitment to smoking harm reduction and making VLN products a key part of the South Korean market through the diverse array of local retail channels they serve. We are working with Nico-Tech to plan a full launch event for the fall of 2024, including on-site support.”

    South Korea represents an estimated $1.6 billion tobacco market and was the first international market to commence sales of VLN reduced-nicotine content cigarettes. While tobacco product use has declined since signing into law the 1995 National Health Promotion Act and subsequent government actions, the prevalence of smoking remains high in certain segments of the South Korean population. It is estimated that one in three adult men in South Korea are smokers, and an estimated 6 percent of adult women smoke.

    Nico-Tech will be responsible for all local marketing activities to generate consumer demand and awareness in South Korea. The new agreement includes minimum order quantities to support the initial stocking and restocking needs of the planned South Korean distribution.

  • KT&G Supports Farmers

    KT&G Supports Farmers

    Photo: KT&G

    KT&G delivered welfare improvement support funds amounting to approximately KRW420 million ($303,020) to tobacco farmers.

    This year’s support funds will be used for health checkup fees, child scholarships and the purchase of fuel-saving devices for drying facilities targeting leaf tobacco growers.

    KT&G has been delivering welfare improvement support funds to leaf tobacco farmers annually since 2013, reaching a total of KRW4.28 billion this year. During the same period, the cumulative number of benefiting growers reached 15,212.

    Korean tobacco farmers have been struggling to secure labor due to the declining and aging rural population. Tobacco cultivation is difficult to mechanize, which makes it imperative to look after growers’ health, according to KT&G.

    The fuel-saving device recirculates the heat discharged during tobacco drying. Since 2022, KT&G has provided 214 units.

    The company also assists its farmers by purchasing all domestic leaf tobacco every year and dispatching employee volunteer groups to assist during the planting and harvesting seasons.

    “We continue to support the welfare improvement projects for farmers to alleviate their difficulties and provide practical help,” said Kim Jeong-ho, head of KT&G SCM headquarters, in a statement.

    “We will continue to provide consistent support to improve the health and economic conditions of leaf tobacco farmers.”

  • Korea to Treat Synthetic Nicotine as Tobacco

    Korea to Treat Synthetic Nicotine as Tobacco

    Photo: Purilum

    The government of South Korea aims to regulate synthetic nicotine as tobacco, reports the Yonhap News Agency.

    The Ministry of Health and Welfare and the Ministry of Economy and Finance want to revise the Tobacco Business Act to include synthetic nicotine in the definition of tobacco.

    Tobacco in South Korea is governed by the National Health Promotion Act, under the jurisdiction of the health ministry, and the Tobacco Business Act governed by the finance ministry.

    The current rules define tobacco as a product “manufactured in a state suitable for smoking, sucking, inhaling steam, chewing or smelling, by using tobacco leaves as all or any part of the raw materials.”

    That language fails to capture the e-cigarette liquids made with synthetic nicotine, which is created in a laboratory rather than from tobacco leaves. As a result, vapes are not subject to product requirements, such as health warning labels, age restrictions and tobacco taxes, in South Korea.

    The push for new legislation follows an announcement by BAT that it is mulling the launch of a new synthetic nicotine product in the country. South Korea is reportedly the only nation where the tobacco giant is considering a synthetic nicotine product.

    “We have decided to push for the revision of the Tobacco Business Act when the 22nd National Assembly opens,” an official at the health ministry was quoted as saying. “We will provide necessary materials to the finance ministry, and there is already an abundance of evidence proving that synthetic nicotine is tobacco.”

    The consumption of e-cigarettes has been rising steadily in South Korea, reaching 16.9 percent of tobacco sales in 2023.