The South Korean government’s push to regulate Synthetic Nicotine products represents one of the most significant changes in the industry. Synthetic Nicotine has gained popularity due to its tax advantages, but lawmakers are working to equalize taxes on synthetic and natural nicotine. “If legislation defines synthetic nicotine to be taxed as natural nicotine, the market would choose natural nicotine, as its cost is half of Synthetic Nicotine,” Kim explained.

Between 2020 and 2024, South Korea reportedly lost approximately $2.4 billion in tax revenue due to Synthetic Nicotine products. Some natural nicotine products are disguised as Synthetic Nicotine to exploit regulatory loopholes, a practice that has drawn attention from lawmakers. While lawmakers across party lines have reached a consensus on regulating these products, the timeline for new legislation remains uncertain. Kim predicts the new regulations could take effect as early as June 2025.

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Synthetic NicotineSynthetic Nicotine is used for E-Liquids
The South Korean government’s push to regulate Synthetic Nicotine products represents one of the most significant changes in the industry. Synthetic Nicotine has gained popularity due to its tax advantages, but lawmakers are working to equalize taxes on synthetic and natural nicotine. “If legislation defines synthetic nicotine to be...