Korea Synthetic Nicotine Regulatory Outlook

Governments worldwide are moving to bring new nicotine analogues under stricter regulation. The United States incorporated synthetic nicotine into the federal tobacco regulatory system in 2022, requiring the same market authorization and sales controls applied to traditional tobacco products and setting a reference point for other jurisdictions. In Asia, Korea has developed into the largest consumer market for synthetic nicotine products, driven by high taxation and a large vaping population. This has sharpened the conflict between accelerating market growth and regulatory absence.

Under current Korean law, tobacco is defined as a product manufactured using tobacco leaves. This definition is rooted in the Tobacco Business Act (담배사업법). As a result, synthetic nicotine is not included within the tobacco regulatory system. It is not subject to tobacco taxation, is not restricted by the 9.8 mg per milliliter nicotine concentration limit under the National Health Promotion Act (국민건강증진법), and is not covered by mandatory health warnings or retail controls. Many companies have taken advantage of this regulatory gap to reduce product costs and increase competitiveness, driving rapid market growth while contributing to tax losses and increased public health risks.

In November 2024, British American Tobacco launched the synthetic nicotine vaping product Nomad in Korea. Operating outside taxation, labeling requirements and sales regulation under current law, the product drew increased policy attention. Some trade media viewed the launch as a factor that strengthened the urgency of regulatory discussions and elevated the topic into institutional review.

Korea Synthetic Nicotine Import Growth

Korea does not publish official market size figures, but customs data show a clear upward trend in synthetic nicotine imports.

• 2021 total imports were 98 tons
• 2022 total imports were 121 tons
• 2023 total imports were 216 tons
• 2024 imports for January to September reached 316 tons, already exceeding the full-year 2023 total

Parliamentary estimates indicate that incorporating synthetic nicotine into the taxable tobacco category could generate approximately KRW 930 billion in annual tax revenue. This figure is a projection rather than an actual revenue result.

Timeline for the Amendment to the Tobacco Business Act

May 2024

The Ministry of Economy and Finance, together with health authorities, announced plans to conduct toxicity assessments and institutional studies on synthetic nicotine e-cigarettes, which had remained outside the legal definition of tobacco. The review aimed to determine whether synthetic nicotine should be brought under regulatory control and whether new legal provisions were required. Coverage by multiple Korean media outlets marked the first formal government action placing synthetic nicotine on the policy agenda.

November 2024
British American Tobacco introduced the synthetic-nicotine product “Nomad,” which, under the current legal definition, was not subject to tobacco tax or health warning requirements. The case was cited in public and industry discussions as an example of the existing regulatory gap and contributed to heightened attention ahead of parliamentary deliberations.

February 2025
The amendment to the Tobacco Business Act was submitted for the first time to the Economic and Finance Subcommittee of the National Assembly. The proposal sought to expand the definition of tobacco raw materials from “tobacco leaves” to “tobacco and nicotine.” The amendment was not approved, but remained on the review agenda.

June 2025
The National Assembly Legislative Research Office issued a policy recommendation proposing that products “manufactured with nicotine as a raw material” be included in the definition of cigarettes. The recommendation identified the expansion of unmanned retail outlets and rising youth use as regulatory risk factors and provided analytical input for subsequent parliamentary review.

August 2025
Parliamentary committees revisited the amendment and added “nicotine analogues” as a potential pathway for regulatory circumvention, suggesting they should be considered for regulatory coverage. In the same month, the Korea Consumer Agency reported that several disposable e-cigarettes labeled as nicotine-free contained nicotine, reinforcing public and policy attention on the need for regulation.

September 2025
The Strategy and Finance Committee voted in favor of expanding the definition of tobacco to “products made from tobacco leaves or nicotine”, thereby bringing synthetic nicotine under the taxation framework. The committee referenced budget estimates indicating potential annual tax revenue of approximately KRW 930 billion and requested implementation assessments covering product identification, testing standards, and tax administration.

October 2025
The amendment was transferred to the Legislation and Judiciary Committee for legal and structural review. The committee identified the definition of “nicotine analogues” as a core issue and discussed the possibility of prohibiting misleading labeling claims such as “nicotine-free.” Additional clarification on regulatory definitions and enforcement grounds was requested.

November 2025
The amendment was reintroduced to the Legislation and Judiciary Committee for renewed deliberation, with lawmakers indicating an increased likelihood of passage within the current session. Discussions centered on defining synthetic nicotine as a regulated tobacco product, addressing tax avoidance and youth access, and examining whether nicotine analogues should also be included within the regulatory scope, with deliberations still underway.

December 2025
South Korea’s Ministry of Health and Welfare and the Korea Health Promotion Institute subsequently confirmed that amendments to the Tobacco Business Act would take effect on April 24, 2026, formally classifying synthetic nicotine liquid e-cigarettes as tobacco products. This confirmation marked the first change to South Korea’s legal definition of tobacco since 1988, ending the long-standing exclusion of synthetic nicotine from tobacco regulation.

Industry Implications

Korea has moved from sector-level discussion to confirmed regulatory inclusion of synthetic nicotine within its tobacco control framework. With the legal status now clarified and the transition to full regulation underway, the direction toward regulatory and tax alignment is clear. Manufacturers and brands should proactively prepare product portfolios, compliance systems, and supply allocation strategies to ensure a smooth transition and secure early-mover advantages as the revised framework takes effect.

Hangsen’s Advantage in the Korean Vaping Market

Hangsen has more than ten years of OEM and ODM experience serving the Korean market and has worked closely with KT&G and other major Korean tobacco and vaping companies. This long-term presence provides a deep understanding of local regulatory trends and consumer flavor preferences. Companies seeking e-liquid or flavor concentrate manufacturing solutions are welcome to contact us for OEM and ODM support.