Tag: South Korea

  • South Korea Expands Vape-Only Smoking Lounges 

    South Korea Expands Vape-Only Smoking Lounges 

    Credit: Sayan

    With the growing popularity of e-cigarettes, South Korea is increasingly accommodating users by introducing dedicated smoking spaces, reflecting a broader shift in attitudes toward smoking alternatives.

    E-cigarette-exclusive lounges have emerged in places like Incheon International Airport and major commercial hubs, catering to smokers who wish to avoid the strong odors and cramped conditions of traditional smoking booths.

    Incheon Airport, for instance, has operated three e-cigarette lounges since June—one each in Terminals 1, 2, and a concourse. These facilities, converted from existing smoking areas, have been redesigned to eliminate ashtrays and mitigate lingering odors from conventional cigarettes.

    According to the airport, these lounges serve an average of 4,000 users daily, with a 4.2 out of 5 satisfaction rate, as measured by a September survey, state media reports.

    The rise of e-cigarette smoking parallels shifting smoking trends in South Korea. While overall tobacco product usage increased marginally from 21.6% in 2019 to 22.2% in 2023, e-cigarette usage has grown significantly.

  • Korea Urged to Regulate Vapes Same as Tobacco

    Korea Urged to Regulate Vapes Same 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 come 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 centers 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.

  • Korea Seeks to Regulate Synthetic Nicotine as Tobacco

    Korea Seeks to Regulate 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 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 British American Tobacco 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.

  • Former Researcher Sues KT&G Over E-Cig Patents

    Former Researcher Sues KT&G Over E-Cig Patents

    Photo: Ian O’Hanlon

    A former KT&G Corp researcher has filed a lawsuit against his former employer claiming that he was insufficiently compensated for inventing “the world’s first e-cigarette” while working at the firm, reports the Yonhap News Agency.

    Kwak Dae-geun demands KRW2.8 trillion ($2 billion), reportedly the highest amount ever claimed by an individual in a South Korean legal action

    According to the suit, Kwak joined the Korea Ginseng and Tobacco Research Institute in 1991 and began developing a tobacco-heating product in 2005.

     In July that year, he registered his first patent for a prototype. In December 2006, he registered another patent for an upgraded version with a controllable heater.

    Subsequently, he developed a full e-cigarette set, and registered a patent for part of the device in 2007 before leaving the company in 2010 as part of corporate restructuring.

    After Kwak’s departure, KT&G allegedly registered patents for some of his technologies without recognizing his contributions.

    In addition to his claim about compensation, Kwak contends that a prominent rival global tobacco firm was able to commercialize its internal heating-based e-cigarette model in South Korea in 2017 due to the absence of overseas patents.

    Kwak’s requested damages reflects his portion of the revenue KT&G is expected to generate through Kwak’s patented technology during the 20-year patent term, as well as what KT&G would have earned if it had registered patents overseas.

    KT&G counters that it has properly rewarded Kwan in the form of offering a technology advisory deal, and that Kwak had agreed not to raise any legal issues.

    The firm also said the technologies invented by Kwak are not currently used in the products it is selling.

    The e-cigarettes being sold by the global firm in question, meanwhile, did not involve technologies patented by Kwak, according to KT&G, which also noted that the rival firm had already commercialized early-model heated tobacco-type products in 1998.

  • BAT Designer Urges Responsible NGP Creations

    BAT Designer Urges Responsible NGP Creations

    Photo: KFF

    Product designs should not center only on providing attractive appearance but also encompass meaning, value and responsibility, according to Ken Kim, head of design at the BAT Group.

    “The role of designers is changing, from simply designing products to assuming social and environmental responsibilities,” Kim said at the Design Korea conference, which took place Nov. 1-5, 2023, in Seoul. “This [new role] is not a choice for individual designers to make, but a common goal the industry and society must undertake together in order to move forward.”

    Kim is the first Korean to head BAT’s product design division. His portfolio includes tobacco heating products such as Vuse Epod 2, Glo Pro Slim and Glo Hyper X2. 

    During the conference, which was reported in The Korea Herald, Kim reviewed measures on how designs could address social issues such as carbon neutrality amid heightened regulations, emphasizing that designs could function as an important key to the tobacco industry’s sustainable future.

    He stressed the importance of designing products in ways that do not appeal to underage consumers. “We need a balanced design strategy that does not stimulate the curiosity of minors, through conducting analysis of design preferences by age groups,” he was quoted as saying. 

  • Korea Claims Vaping Companies are Evading Taxes

    Korea Claims Vaping Companies are Evading Taxes

    Credit: Vitalii Vodolazskyi

    E-cigarette companies have been evading taxes by declaring false nicotine content when importing liquid nicotine base into South Korea, according to one of the country’s lawmakers, reports The Pulse.

    The accumulated tax evasion is estimated at several trillion won.

    Between January 2020 and July 2023, 20,197 kg of liquid nicotine base was imported, according to documents from the Korea Electronic Liquid Association obtained by Lim Lee-ja of the ruling People Power Party. Approximately 3,300 bottles of e-liquid can be produced with 1 kg of liquid nicotine. Each bottle is levied at KRW53,970 ($40.60).

    Many e-cigarette companies have been mis-declaring tobacco leaf nicotine as tobacco stem and root nicotine to evade taxes since 2016, according to the association. Under Korea’s tobacco laws, nicotine extracted from tobacco stems and roots is not classified as tobacco.

    Data shows that e-cigarette companies changed their declarations from tobacco leaf nicotine to synthetic nicotine when Korea’s Individual Consumption Tax Act was amended in 2021 to impose taxes on all tobacco-derived nicotine. Synthetic nicotine is classified as a simple commodity and not subject to taxes.

    The association stated that annual distribution volume of Korean e-cigarette liquid is 30 million 30 mL bottles, with an estimated annual tax evasion of KRW1.6 trillion.

    In 2019, the Board of Audit and Inspection audited the Korea Customs Service, the Ministry of Environment and the Ministry of Health and Welfare, showing that all the inspected imported nicotine was tobacco leaf nicotine. Falsified declarations have continued since then, according to the association.

    Lim has called on the government to crack down on companies falsely declaring their products.

    Liquid nicotine base is considered a hazardous substance under the Chemical Substance Control Act, regulated by the Ministry of Environment. Imports must be reported to the minister of environment, and companies must obtain an import declaration certificate for hazardous substances.

    Those caught failing to report or falsely reporting the import of hazardous substances are subject to up to one year of imprisonment and up to KRW30 million in fines. None of the companies shown to have falsely declared nicotine products in past audits have been punished to date.

  • Korea Vape Show 2023

    Korea Vape Show 2023

    The market share of open pod systems on the Korean market is much higher than in other regions.

    By VV staff report

    Korea Vape Show 2023 (KOVAS) is the best launching point for entering the Korean market, according to a Wingle Group report of the show. Wingle is a Hong Kong-based business platform company founded in 2010 that facilitates mutually beneficial cooperation between consumer electronics, healthcare and e-consumer companies.

    KOVAS is a vaping business exhibition that connects domestic and overseas distribution buyers and companies from more than 20 countries. The dynamic event exhibits the latest technologies from the vape industry, and more than 50 companies were given the opportunity to promote their products to more than 15,000 visitors. KOVAS was held in late July at the Korea International Exhibition Center, commonly known as KINTEX, located in Ilsanseo-gu, Goyang, Gyeonggi Province, South Korea.

    Listed below are 10 takeaways from the Wingle report:

    1. The Haka brand showcased its Haka Q (Metex Melux) heated-tobacco system with Bluetooth connectivity for consumption tracking. Haka also promoted its new disposable e-cigarette Haka S, Haka Glow with the FEELM Max ceramic heater. Haka is completely powered by Shenzhen Smoore Technology.
    2. Aspire launched its prefilled pod system Gotek S. The next planned market is the U.K. The company also showcased its new Peboo pod mod.
    3. Geekvape presented the Geekvape & PAX Vape pod mod with VPU technology for an improved vapor performance.
    4. Daddy’s Vapor promoted the Pyro 6000 disposable powered by Smoore’s Topower battery solution, which claims to have 30 percent more capacity compared to mainstream batteries with the battery size remaining unchanged.
    5. Korean wholesaler Dragon Vapes promoted Uwell’s upcoming releases: Valyrian Air, Valyrian Pro and Valyrian Max pod systems.
    6. Pura presented two new products: Pura Legend pod system and the Pura MyBox 5000 disposable.
    7. Smok showcased its new Spaceman SP7000 disposable with battery and e-liquid indicators.
    8. Innokin launched Klypse Mecha and Innobar R2 open pod systems.
    9. Several new high-capacity disposables with a display were highlighted: Vapengin Nimmbox 8500, Orca Air 7500, Yooz BC8000, Mosmo VD8500, Mosmo SO7500, Mosmo Jucy Punk II 7000, Oukitel Aqua 12000, Oukitel 9000, Sanyeah C290 5000, Firerose IN7500 and Nasty DX 8.5i.
    10. There were also several new compact-size pod systems: Aspire GoTEK Pro, Smoant Levin, Pura Legend, Viento Magnum, Innokin Klypse Mecha, Innokin Klypse Zip, Innokin Innobar R2, Rincoe Jellybox V1, Rincoe Jellybox V2 and Rincoe Jellybox V3.

    Most of the presented and marketed devices at KOVAS have futuristic electromechanical designs with transparent bodies, according to the Wingle report, which also detected a trend toward making pod systems less expensive. Additionally, the market share of open pod systems on the Korean market is much higher than in other regions.

    Heat-not-burn players on the Korean market include Smoore (Haka Korea), Shenzhen SMY (Pluscig, Morex) and Shenzhen Yunxi Smart (UWOO), according to Wingle. Smoore, the world’s largest atomization company, seemed to also attempt to generate new leads and establish new relationships for the expansion of its FEELM-powered devices. Disposable vaping products had a strong presence, and the segment continues to grow globally.

    KOVAS 2023 was a success, according to Wingle. That may be due to South Korea’s next-generation tobacco market showing a booming trend in recent years, according to data from Euromonitor. The country’s heated-tobacco market was valued at KRW2 trillion in 2021 and is expected to reach nearly 2.5 trillion won by 2025. And according to a survey by the South Korean Ministry of Strategy and Finance, the share of the entire tobacco market held by the e-cigarette segment in Korea rose from 2.2 percent in 2017 to 14.8 percent in the first half of 2022.

  • China’s Boton Group Divests 51% Stake in Bubblemon

    China’s Boton Group Divests 51% Stake in Bubblemon

    Kate Wang / Credit: RELX

    China Boton has sold its Bubblemon Vape Brand to the founder of RELX vaping products, Kate Wang.

    According to an announcement, the company has signed a sale agreement with the Han Holding SPV.

    Han Holding is an investment holding limited company registered under the laws of the British Virgin Islands and a wholly-owned subsidiary of Sunnyheart Inc.

    Sunnyheart Inc. is a limited liability company registered under the laws of the Cayman Islands, primarily engaged in the sale of e-cigarettes.

    According to the directors, based on the information provided by Sunnyheart Inc., the ultimate beneficial owner of Sunnyheart Inc. is Wang Ying (also known as Kate Wang, CEO and founder of Relx Technology), who holds 50 percent voting rights of Sunnyheart Inc. and is the sole director of Sunnyheart Inc.

    Upon completion of the transaction, the buyer and Han Holding SPV will respectively hold 81 percent and 19 percent of the target company’s equity.

    After the reorganization, Boton Holding SPV and Han Holding SPV will respectively hold 51 percent and 49 percent of the target company’s equity, making the Korean target company a wholly-owned subsidiary of the target company, according to 2FIRSTS.

    China Boton is an investment holding limited company registered in the Cayman Islands, mainly engaged in the research and development, production, trading, and sale of extracts, essences, and spices. The company is also involved in the design and manufacture of high-quality e-cigarettes and related products.

  • Korean Ministry Urges Group to Cancel Vape Show

    Korean Ministry Urges Group to Cancel Vape Show

    Photo: Taco Tuinstra

    South Korea’s Ministry of Health and Welfare (MOHW) has urged events organizer The Fairs to cancel its Korea Vape Show 2023, reports Korea Biomedical Review.

    The exhibition is scheduled to take place July 21-23 in Goyang, Gyeonggi Province.

    “We sent a letter asking for the event to be canceled because we had concerns from a health promotion perspective,” a MOHW official was quoted by Yonhap News as saying. “We are also concerned that adolescents may visit the show if access to the convention is not properly controlled.”

    The ministry also expressed worries about advertised vaping contests that it said would violate indoor smoking restrictions. South Korea allows indoor smoking only in separate, fully enclosed areas.

    The MOHW said it plans to inspect the venue on the day of the event and impose penalties if the organizers fail to create a fully enclosed smoking room inside the venue.

    The organizers said they had submitted plans to resolve the issues raised by critics and said it would not cancel the convention.

    The official also stressed that previous conventions had been held without problems. “During the past three conventions, officials from the local public health center visited the convention and found no wrongdoings,” she said. 

  • Industry Thinks Korean Officials may Raise Vape Taxes

    Industry Thinks Korean Officials may Raise Vape Taxes

    Credit: CESM I Studio

    The vaping and tobacco industries in South Korea are speculating that the government could raise taxes on e-cigarettes to increase tax revenue.

    Even after officials faced fierce backlash from the sector and smokers, the country’s finance minister still commented on the possibility.

    The remark was made by the country’s Economy and Finance Minister Choo Kyung-ho in a plenary session at the National Assembly on April 17, according to Pulse News.

    In the session, lawmaker Bae Jun-young asked Choo a question about the government’s stance on taxing e-cigarettes, saying that “cig-a-like e-cigarettes contain harmful toxins like regular cigarettes.”

    “I was aware that some officials from the Ministry of Health and Welfare recommended that e-cigarettes be classified as tobacco products, like other regular cigarettes,” said Choo, indicating that “cig-a-like e-cigarettes” should be taxed at a rate equivalent to taxes on regular tobacco products if the two have the same level of harmful effects on the human body.

    The Ministry of Economy and Finance said that “there is no consideration on raising tax on e-cigarettes.”

    Vaping products are currently taxed lower than regular nicotine delivery systems. For regular cigarettes priced at 4,500won ($3.39) per pack, the government levies a tax of 3,323won, including a special consumption tax of 594won and excise tax.

    For e-cigarettes, however, the tax amounts to only 90 percent of the regular tax at 3,004won.