Tag: South Korea

  • BAT Launches Glo Hyper X2 in South Korea Market

    BAT Launches Glo Hyper X2 in South Korea Market

    BAT Rothmans has released the Glo Hyper X2 heat-not-burn device to the South Korean market, reports The Korea Times.

    “Glo Hyper X2 is a next-generation e-cigarette device that will lead the BAT Group’s smoke-free product business,” said Kim Eun-ji, BAT Rothmans’ country manager for South Korea. “We have not only increased the users’ convenience of the platform but also improved its design and portability.”

    Glo Hyper X2 device adopts more slim design than its previous Glo series models, while allowing to smoke tobacco sticks that contain 30 percent more tobacco content.

    It is the first platform to offer two separate “boost mode” and “standard mode” buttons. Users can choose the former to smoke quickly after 15 seconds of preheating or the latter to preheat 20 seconds and smoke non-stop for four minutes.

    The new device also adopts a shutter system to protect from dust and foreign substances. There are LED indicators to show the remaining battery power and preheating status.

  • IQOS Iluma One Makes Debut in South Korea

    IQOS Iluma One Makes Debut in South Korea

    Photo: PMI

    Philip Morris International has introduced its IQOS Iluma One in South Korea, reports The Korea Times. The launch comes three months after the debut of IQOS Iluma and IQOS Iluma Prime models in the country.

    According to Philip Morris Korea Managing Director Paik Young-jae, the launch of ILUMA One completes the Iluma platform family.

    “The first two ILUMA models have received a good response from the market and if this continues, I am hoping that we will reclaim the leading position in the e-cigarette market here,” Paik said.

    Since the launch of the IQOS device in 2017, Philip Morris Korea had maintained the No.1 spot in the domestic heat-not-burn for five years. However, in the first quarter of 2022, KT&G took over market leadership in the first quarter of last year.

    IQOS Iluma One retails in South Korea for KRW69,000 ($54.74), which is about 30 percent cheaper than the IQOS Iluma.

     The new device is made with an all-in-one lightweight design that can be held in one hand. A single charge can be used to smoke 20 tobacco sticks.

    Like other IQOS ILUMA models, the IQOS ILUMA ONE uses “Terea Smartcore” sticks, which heat tobacco with an induction system adopted inside its body so that users don’t have to clean any residue afterward.

     

     

  • Korea Cracks Down on E-Cigarette Tax Evaders

    Korea Cracks Down on E-Cigarette Tax Evaders

    A plan to strengthen the crackdown on people evading taxes on imports of tobacco-derived e-cigarette products by claiming the nicotine is synthetic, according to South Korea’s customs agency.

    The Korea Customs Service said it had developed a high-precision analysis method to identify whether the nicotine contained in an e-liquid is extracted from natural tobacco or created in a lab.

    This method uses a sample preparation technology called derivatization to increase the detection sensitivity of a specific ingredient contained in tobacco leaves by a factor of 30, according to The Korea Biz Wire.

    E-liquids in South Korea that use natural nicotine are classified as cigarettes under tax laws, and are therefore being levied an inland duty of 1,799 won ($1.32) per 1 milliliter.

    Synthetic nicotine-based e-liquids, however, that are produced with chemical materials are not classified as tobacco cigarettes but as manufactured goods, and are therefore exempt from cigarette consumption taxes.

    Accordingly, there are some cases where e-cigarettes using tobacco-derived nicotine are falsely being reported as synthetic nicotine e-cigarettes to avoid taxes.

  • Korean Health Ministry Sued Over Misinformation

    Korean Health Ministry Sued Over Misinformation

    Photo: niyazz

    The Korea Electronic Cigarette Association (KECA) has sued the Ministry of Health and Welfare (MOHW) and the Korea Disease Control and Prevention Agency (KDCA), demanding the government correct misinformation about e-cigarettes, reports the Korea Biomedical Review.

    The KECA’s lawsuit alleges that the government caused financial damage to e-cigarette-related small business owners by releasing incorrect information via an Oct. 23, 2019, press release recommending Koreans stop using liquid e-cigarettes.

    The MOHW’s recommendation was issued following an outbreak of lung injuries in the United States that was initially attributed to nicotine vapes but was later determined to be associated with illicit THC products.

    “According to the U.S. [Food and Drug Administration’s] notice banning the sale of liquid-type e-cigarettes, which was the basis of the MOHW’s decision that advised smokers to stop using e-cigarettes, tetrahydrocannabinol, a hemp-derived substance, was the main problem,” the KECA said.

    In 2019, the U.S. Centers for Disease Control and Prevention stated that there were 530 confirmed severe lung diseases and eight deaths in the U.S. related to the use of liquid-type e-cigarettes.

    “However, at the time of the announcement of the MOHW’s recommendation, there was only one suspected case of lung damage in Korea, and even the suspected case came from a person who smoked tobacco,” the KECA said.

    According to a paper published in the Journal of Korean Medical Science in December 2021, there were no cases of severe pneumonia or lung damage among liquid e-cigarette users, according to the KECA. The group stated that the MOHW’s failure to withdraw its recommendation to stop use of liquid e-cigarettes shows a neglect of its duties.

    A MOHW spokesperson said it will investigate the complaint and respond to the lawsuit in conjunction with other agencies, such as the KDCA and the Ministry of Food and Drug Safety.

  • BAT’s Glo Brand Doubles its Market Share in Korea

    BAT’s Glo Brand Doubles its Market Share in Korea

    Credit: Radub85

    Non-combustible products are rising in popularity in South Korea, especially the heated tobacco market. According to the latest government data, 210 million packs of heat-not-burn devices were sold in the first half of 2021, up 16.2 percent from the same period a year earlier.

    The category’s share in Korea’s entire tobacco market has also increased to 12.4 percent in 2021 from 2.2 percent in 2017, according to Korea Biz Wire.

    The country is a key market for the BAT’s glo device, with its market share growing twofold in the past two years. “Our local share has grown greatly since the launch of our heat-not-burn glo pro in 2019. Glo’s share in the non-combustible tobacco market has doubled from two years ago,” BAT’s Country Manager Kim Eun-ji said at the news conference.

    BAT’s share in Korea’s non-combustible tobacco market has grown from 6.04 percent in 2017 to around 12 percent in June 2022, said Kim.

    In line with such a trend, BAT, the maker of Dunhill and Lucky Strike cigarettes, has invested over $488 million in Korea, which includes a factory in Sacheon, 440 kilometers south of Seoul, which has served as a core export base of BAT since 2002.

    “We are aware that the industry’s position is different from that of the health ministry. If we continue to push with more ‘data-driven’ (ways of) communication, we think it will create momentum (that can push) the government to take a step forward, but it will take time,” Kim said.

    BAT is the third-largest player in the Korean market for non-combustible tobacco products. The front-runner is KT&G, which accounts for 47 percent of the local market as of June.

    BAT Rothmans, the Korean arm of BAT, also reported Tuesday its tobacco heating device glo can reduce health risks of traditional cigarettes, according to a recent study published in the medical journal “Internal and Emergency Medicine.”

    The study compared the health effects of glo against traditional cigarettes among 500 British adults aged between 23 and 55 over a one-year period. Researchers found that aerosol produced from glo had 90 to 95 percent less toxicant compared with smoke from traditional cigarettes.

    Toxic compounds produced by burning tobacco were either not detected or significantly reduced through the glo device, the company added. “This real-world study allows us to assess the changes that adult smokers switching exclusively to glo experience. It reinforces glo’s potential as a reduced-risk product,” Sharon Goodall, BAT’s head of regulatory science, said at the news conference.

    The study results come amid growing calls from the Korean government to increase regulations on e-cigarettes. In September, the health ministry pointed out that e-cigarette devices should go under tighter regulations, citing a growing number of teenage users of such products in the country.

    E-cigarette heating devices, like glo, are categorized as ‘industrial products’ in Korea and are subject to looser regulations compared with cigarettes. “It’s hard to entirely trust a clinical study result unilaterally conducted by the tobacco industry. The World Health Organization has concluded that there’s insufficient evidence to support that e-cigarettes are less harmful than traditional cigarettes,” a health ministry official said. He asked not to be identified, citing the issue’s sensitivity.

  • KT&G Strengthens Grip on Korean ENDS Market

    KT&G Strengthens Grip on Korean ENDS Market

    Photo: KT&G

    KT&G’s share of the South Korean market for electronic nicotine delivery systems (ENDS) rose to a record 40.7 percent by the end of September, reports The Pulse News.

    The company’s performance is driven by the success of new tobacco sticks, such as Fiit and Miix, which are compatible with its heat-not-burn cigarette brand Lil.

    Cumulative sales of Lil devices surpassed 4 million units this year, compared with 3.22 million in 2020.

    The company’s key growth driver has been Lil Hybrid 2.0, which combines KT&G`s proprietary technology using cartridge and stick.

     KT&G is also strengthening the lineup of dedicated sticks for its devices. The lineup of Fiit and Miix sticks almost doubled from 11 types in 2019 to 20 today.

    The Lil brand has been well received internationally, as well. In a global partnership with Philip Morris International, the KT&G product is now sold in 10 countries, including Russia, Ukraine and Japan.

  • BAT Korea will Continue Online Vapor Marketing

    BAT Korea will Continue Online Vapor Marketing

    Recent successful digital marketing efforts reaffirmed BAT Korea’s plans to reach a wider audience for its lower-risk products by promoting them online, according to a spokesperson during “BAT Innovation Day” on Tuesday.

    “Sales promotions for Glo Pro last month took place both online and in-store and it was especially well received online and we managed to sell out the stock we prepared quicker than expected,” said Yu Jung-min, head of offline activation at BAT Korea during the online press event. “Diversifying sales channels gave us an opportunity to rebound from a recent decline.”

    The global tobacco company used the event to showcase its focus on innovation. The company also offered an industry-first virtual factory tour during the event, demonstrating the technology behind its manufacturing facility in Sacheon, South Gyeongsang Province, where the company is making its first new product of the year, the KENT Double Fresh, and its heat-not-burn (HnB) products, Glo neo sticks.

    When asked about the decision to continue to release regular tobacco products despite the company’s emphasis on its environmental, social and governance approach, Yu said sales of regular tobacco products, which account for most of its sales, are essential to ensuring investment, according to an article in The Korea Herald.

    The BAT Sacheon Factory, which opened in 2002, is now home to some 1,000 employees. BAT is the first foreign tobacco company with a production facility in the country, the company said.

    Last year, the company announced it is teaming up with LS Electric to introduce solar power generation facilities at its Sacheon factory, with construction poised to begin in March When completed, the factory is expected to generate up to 1,435 kilowatts of electricity through solar power, which will constitute a “remarkable amount of carbon reduction,” the company said.

  • Surprise: Study Finds Vapers Vape in No Smoking Zones

    Surprise: Study Finds Vapers Vape in No Smoking Zones

    A recent survey from South Korea found that 8 in 10 South Korean e-cigarette users said they had secretly smoked stealthily in non-smoking areas. At 83.5 percent, the vast majority of e-cigarette users said they had vaped illegally, dwarfing the 16.5 percent who said they did not participate in such activity.

    Busan Bridge at night South Korea
    Credit Sungho Song

    Under the National Health Promotion Act, those who use e-cigarettes in non-smoking areas can be fined, just like for smoking conventional tobacco cigarettes.Heat-not-burn products were not mentioned in the study and would face similar fines, according to a story by The Korea Bizwire.

    A research team from the Asan Medical Center conducted a survey of 7,000 men and women between 20 and 69 years of age. Of the total, the number of people who had used e-cigarettes in the previous month stood at 394. Among vapers, 44.6 percent between 20 and 34 years old, while men accounted for 74.1 percent of the total.

    Most participants said the smoked at home indoors, which accounted for the largest share at 46.9 percent, followed by private cars at 36.9 percent and outdoor non-smoking areas at 28.3 percent. Men and women accounted for 44 percent and 55.6 percent of the violators, respectively, indicating that more than half of female vapers users are vaping secretly at homes.

  • Ukraine Latest Market for KT&G’s e-Cigarette ‘Lil SOLID’

    Ukraine Latest Market for KT&G’s e-Cigarette ‘Lil SOLID’

    Lil Solid device from KT&G

    KT&G’s cigarette-type e-cigarette, Lil SOLID, and its exclusive heatstick, Fiit, were launched in Ukraine on Sept. 7.

    This is the second achievement of collaboration between KT&G and Philip Morris International (PMI) following the launch of the product in Russia, according to an article in Business Korea.

    KT&G and PMI are stepping up their efforts to penetrate the global e-cigarette market as they expanded their presence to Ukraine in Eastern Europe about three weeks after the launch of Lil SOLID in Russia on Aug. 17. Ukraine has a population of about 42 million. Like Russia, Ukraine has many consumers who have interest in e-cigarettes.

    In Ukraine, Lil SOLID comes in three colors — dark navy, white and blue. Its exclusive stick also comes in three types — Fiit REGULAR, Fiit VIOLA, and Fiit CRISP. They are the same products as those launched in Russia.

    Under the deal with KT&G, PMI will fully manage product sales by utilizing its resources, knowledge and infrastructure in the Ukrainian market.

  • South Korea Set to Double E-liquid Taxes in 2021

    South Korea Set to Double E-liquid Taxes in 2021

    Credit: Shawn Ang

    South Korea’s Ministry of Health and Welfare (MOHW) said it would double the national health promotion tax on e-liquids for electronic cigarettes. The health tax for e-liquid is currently won525 ($0.46) per milliliter of nicotine solution. It will jump to won1,050, on Jan. 1, 2021.

    The increase is in keeping with other tax hikes, including special tobacco consumption tax, according to an article in the Korea Biomedical Review. Cigarettes manufactured using parts other than the leaves of tobacco, which currently are not subject to taxation, will also be included in the health promotion tax.

    Cigarettes made and stockpiled before the amendment come into effect will also be subject to the new health, to keep makers from making inventory profits.

    The health authorities will listen to public opinions during the legislative notice period and finalize the proposal. It will submit the amendment to the National Assembly after undergoing a regulatory and legislative review, according to the article.