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Tag: South Korea

  • Foreign Expansion Driving KT&G’s Success

    Foreign Expansion Driving KT&G’s Success

    In an interview with The Korea Times, KT&G credited expanding overseas operations with its recent financial success, with foreign sales passing domestic for the first time in the company’s history. The South Korean company has seen rapid international growth, with foreign subsidiary revenue rising 245% since 2020 and overseas cigarette volumes more than doubling. KT&G reported record annual sales of 6.5 trillion won ($4.5 billion) and operating profit of 1.35 trillion won in 2025.

    Supported by 16 marketing and manufacturing hubs and five global production plants, KT&G said it plans to continue strengthening its global footprint and product portfolio, as investor interest grows and the company’s market value climbs.

    “Our overseas bases were not established for short-term sales gains,” a KT&G official said. “They were built to create a sustainable global business structure for the long term, taking into account specific consumer demands across different regions.”

  • South Korea Uses Post Office to Recycle Vapes

    South Korea Uses Post Office to Recycle Vapes

    South Korea’s Postal Service launched a nationwide e-cigarette recycling program in partnership with Philip Morris Korea, the Ministry of Climate, Energy and Environment, and the Environment Foundation. Consumers can place used e-cigarette devices in special postal collection bags and drop them at post office counters or mailboxes, after which the devices are sent to recycling companies for safe processing. The initiative, which also collects waste medicines and disposable coffee capsules, aims to reduce environmental pollution, improve recycling rates, and leverage the postal network to provide an accessible, nationwide resource recovery system.

  • Korean Insurer Appeals to Supreme Court in Tobacco Fight

    Korean Insurer Appeals to Supreme Court in Tobacco Fight

    South Korea’s National Health Insurance Service (NHIS) appealed to the Supreme Court in its ongoing lawsuit seeking to hold cigarette manufacturers liable for smoking-related healthcare costs, challenging an appellate ruling that rejected key liability claims. The NHIS argues the lower court erred in concluding that the health risks and addictive nature of smoking were widely understood in the 1960s and 1970s, contending that tobacco companies concealed scientific evidence and operated in a period of limited regulatory oversight. The case focuses on recovering medical expenses tied to smoking-related cancers, including lung and laryngeal cancers, with the insurer asserting that cigarette manufacturers knowingly sold harmful and addictive products without adequately disclosing risks. The NHIS is requesting a full Supreme Court bench review and public hearing, citing the case’s broad public health and financial implications.

  • Korea to Regulate Synthetic Nicotine as Tobacco

    Korea to Regulate Synthetic Nicotine as Tobacco

    South Korea announced today (Feb. 3) that it will extend full tobacco regulatory controls to synthetic nicotine liquid e-cigarettes from April 24, bringing them in line with conventional tobacco products following amendments to the Tobacco Business Act and National Health Promotion Act. The measures require manufacturers and distributors to include graphic health warnings on packaging and restrict advertising to limited channels, while banning promotional content targeting women or minors or highlighting flavors. The revised framework also prohibits the use of all tobacco and nicotine products, including e-cigarettes and heated tobacco, in designated smoke-free areas, with violations subject to fines of up to 100,000 won ($69). The regulatory expansion, the first major update to the tobacco definition since 1988, aims to close loopholes that previously allowed synthetic nicotine products to be marketed and sold with fewer controls, particularly amid concerns around youth access and public health risks.

  • Overseas Seizures Show Korea Used as Tobacco Smuggling Hub

    Overseas Seizures Show Korea Used as Tobacco Smuggling Hub

    South Korea’s customs agency said millions of packs of smuggled cigarettes were seized overseas last year through joint operations with foreign authorities, underscoring the country’s growing use as a transshipment hub by international smuggling networks. The Korea Customs Service (KCS) said nearly 5.2 million packs, weighing about 103 tons, were confiscated abroad after being routed through South Korea.

    According to the KCS, major seizures included roughly 760,000 packs in the United States, 380,000 in Hong Kong, 260,000 in the United Kingdom, and 230,000 in Taiwan. The total far exceeds the 3.6 million packs detected overseas between 2019 and 2021, highlighting a sharp rise in cases linked to Korea-based transit routes.

    A KCS official said cigarette smuggling, like drug trafficking, is a key funding source for criminal syndicates. The agency said it will further strengthen international cooperation to prevent South Korea from being exploited as a logistics hub for global illicit trade.

  • Korea Tightening Vape Regulations in 2026

    Korea Tightening Vape Regulations in 2026

    South Korea will classify synthetic nicotine e-cigarettes as tobacco under a revised Tobacco Business Act that takes effect on April 24, 2026, marking the first change to the legal definition of tobacco since 1988. The amendment closes a regulatory loophole that previously excluded synthetic nicotine products, bringing them under existing tobacco controls following government studies that found such products contain carcinogens and other harmful substances.

    Under the new framework, synthetic nicotine e-cigarettes will be subject to mandatory health warning images and text on packaging, stricter advertising rules, and use bans in smoke-free areas such as schools, hospitals, and government buildings. Flavor-based marketing aimed at young people will be prohibited, and online sales, social media promotion, external store displays, and sponsorships will be banned. Sales will be limited to designated tobacco retail outlets.

    Additional measures include tighter controls on vending machines, requiring adult verification systems, and banning machines in educational protection zones from February 2026. Health authorities said compliance monitoring manuals are already in place for manufacturers and importers.

  • South Korea to Define All Nicotine Products as ‘Cigarettes’

    South Korea to Define All Nicotine Products as ‘Cigarettes’

    South Korea’s Cabinet moved to close regulatory and taxation gaps surrounding liquid e-cigarettes, including those using synthetic or nicotine-substitute substances, amid what is says are growing safety concerns. At a Cabinet meeting today (December 16) chaired by President Lee Jae-myung, the government approved the promulgation of amendments to the Tobacco Business Act that legally classify liquid e-cigarettes as tobacco products. The revised law expands the definition of cigarettes from products made from tobacco leaves to all products containing tobacco or nicotine, bringing synthetic-nicotine liquid e-cigarettes under formal regulation.

    President Lee highlighted concerns that nicotine substitutes have been distributed without adequate safety verification and called for stronger institutional oversight. Reports of suspected lung damage linked to liquid e-cigarettes were also raised during the meeting.

    Deputy Prime Minister and Finance Minister Koo Yoon-cheol said products released four months after the law takes effect will be regulated and taxed as cigarettes. However, he noted regulatory limits regarding so-called “nicotine-free” products manufactured before the law’s implementation, stressing the need for separate management and hazard assessments.

    The revision aims to eliminate regulatory and taxation blind spots while gradually strengthening safety management for nicotine substitutes.

  • Korean Smoking Rate Drops 1 Percentage Point

    Korean Smoking Rate Drops 1 Percentage Point

    The Korea Centers for Disease Control and Prevention released the results from its 2025 Community Health Survey, and found the smoking rate dropped one percentage point from last year to 17.9%, while the use of e-cigarettes rose 0.6% to 9.3%. The overall use of tobacco products dropped 0.5% from last year to 22.1%.

    In other health topics, overall drinking and high-risk drinking dropped 1.2% and 0.6% respectively, but the obesity rate went up 1% to 35.4%. Physical activity went down, while hypertension and diabetes increased.  

  • Cigarette Butts, Winter Months Increase Korean Fire Risk

    Cigarette Butts, Winter Months Increase Korean Fire Risk

    South Korea’s National Fire Agency reported that fires started by discarded cigarette butts caused 154 billion won ($104.7 million) in property damage over the past five years, highlighting the growing risks as winter fire season begins. From 2020 to 2024, the country recorded 191,510 fires, 743 of which were linked to discarded cigarettes. Nearly 40% of fires with casualties occurred from December to March due to heavy use of heating equipment and dry conditions.

    Authorities also said that cigarette-related fires, along with electrical faults, were among the leading causes of large-scale factory and warehouse fires, involving losses of over 10 billion won ($6.8 million).

  • KT&G Reports Record Q3 Results, Raises Annual Outlook

    KT&G Reports Record Q3 Results, Raises Annual Outlook

    KT&G reported record-high third-quarter results, with revenue up 11.6% year-on-year to KRW 1.83 trillion ($1.3 billion) and operating profit rising 11.4% to KRW 465.3 billion ($321 million), the highest in five years. Strong global cigarette sales — up 24.9% — drove growth, while domestic and next-generation product sales remained solid, the company said.

    KT&G raised its annual revenue and profit guidance to double-digit growth and reaffirmed shareholder returns, including a KRW 6,000 ($4.14) minimum dividend per share and KRW 260 billion ($179 million) in stock buybacks.

    The company continues to move forward with plans to expand its nicotine pouch business through a joint acquisition of Another Snus Factory with Altria by year-end.