August 2026: S. Korea Faces Surge in ‘Nicotine-Free’ and Analogue Vapes Following Heavy Vape Tax
South Korea’s vaping market is grappling with a rapidly growing loophole following a sweeping tax implementation that more than doubled retail prices for e-cigarettes. Consumers looking to bypass escalating costs are turning to products marketed as “nicotine-free” or containing synthetic nicotine analogues – uncovering a burgeoning gray market that health authorities warn carries significant safety and regulatory risks.
The influx of alternative vaping products follows the implementation of the revised Tobacco Business Act, which officially reclassified synthetic nicotine vapes as legal tobacco products. The law brought stringent oversight and heavily elevated excise taxes, instantly doubling retail prices: a standard 30-milliliter vape cartridge that previously retailed for under ₩20,000 ($14) spiked to over ₩40,000 ($28). Following a two-year grace period, prices are projected to exceed ₩70,000 ($49) per cartridge.
In response, budget-conscious consumers – and an increasing number of teenagers – have migrated to unregulated alternatives labeled as zero-nicotine or containing unclassified chemical compounds. According to parliamentary and customs data, nearly 99% of these products are imported from China. Imports of “nicotine-free” liquid surged from 95 tons in 2022 to 164 tons, hitting a five-year monthly peak of 68 tons. Meanwhile, imports of nicotine analogues reached 15 tons between last October and May.
Despite being advertised as clean or nicotine-free, government testing revealed that many products directly misread their contents to evade taxation and sales restrictions. A targeted investigation by the Ministry of Food and Drug Safety (MFDS) tested 105 popular “nicotine-free” vapes on the market and uncovered widespread mislabeling: 24% of the products either contain nicotine or 6-methyl nicotine. Health officials warned that chemical analogues like 6-methyl nicotine mimic the addictive and physiological effects of standard nicotine while exhibiting cytotoxicity (cell damage). Because these synthetic compounds are not yet legally categorized as tobacco under current statutory definitions, manufacturers freely distribute them without standardized safety evaluations or age-verification controls.
The regulatory blind spot has drawn scrutiny from the highest levels of government. The President previously questioned the legal loopholes during Cabinet meetings, raising alarm over citizens inhaling unverified chemical substitutes without mandatory safety assessments. Industry representatives from major tobacco producers noted that manufacturers intentionally utilize analogues and mislabeling to tempt consumers while preemptively evading synthetic nicotine taxes.
In response, South Korean authorities are mobilizing a multi-agency effort to address the issue. The Ministry of Food and Drug Safety is expanding comprehensive toxicity testing on vape alternatives to establish formal health hazard data, while the Ministry of Finance and Economy is inspecting domestic distributors and vape shops selling tobacco alternatives without appropriate licenses. Meanwhile, the Ministry of Education is launching awareness campaigns targeting parents and students to inform them of the health hazards and deceptive marketing behind zero-nicotine vapes. Building on the forthcoming toxicity test results, the government plans to publish a unified, inter-ministry regulatory framework later this year.
June 2026: Philip Morris Launches VEEV E-cigarettes in South Korea
Philip Morris International (PMI) announced the launch of its VEEV vaping platform in South Korea, introducing the VEEV inPRIME device and VEEBI inPRIME pods. VEEV inPRIME is a rechargeable, closed-pod vaping system that incorporates PMI’s latest vaping technology. The device uses the company’s proprietary Advanced Vape Induction System, which heats the e-liquid through induction rather than direct contact, helping to maintain consistent heat distribution and flavour delivery throughout use.
The device also features a liquid depletion detection system that alerts users when the pod is nearly empty and automatically stops heating to prevent a burnt taste. In addition, a vibration-based feedback system provides notifications during use, including alerts for low battery levels and low e-liquid, offering a more intuitive user experience.
VEEV inPRIME is available in five colours and carries a recommended retail price of ₩29,000 (US$19.2). During the introductory promotion, the device will be sold for ₩10,000 (US$6.6) at IQOS flagship stores and ₩15,000 (US$9.9) at participating convenience stores. The accompanying VEEBI inPRIME pods are designed to deliver approximately 1,400 puffs per pod, based on one-second puffs. The pods are available in five flavours in South Korea: Red Wave, Purple Wave, Sun Wave, Garden Wave and Blue Fresh. Each 2 mL pod is priced at ₩8,000 (US$5.3).
Pre-sales of VEEV inPRIME and VEEBI inPRIME will begin at IQOS flagship stores nationwide on June 22. The products are scheduled to become available through major retail channels, including around 14,000 convenience stores across South Korea, from July 2.
May 2026: South Korea Sees Rise in DIY “Kimjang” Vape Liquids Following New Tobacco Tax Rules
South Korea is witnessing a growing shift toward homemade e-cigarette liquids, with more consumers turning to DIY mixing practices after new tobacco regulations sharply increased the expected tax burden on vaping products. The trend accelerated following a revised Tobacco Business Act that took effect on March 24, 2026. The amendment expanded the legal definition of tobacco beyond traditional leaf tobacco to also include products using nicotine as a raw material. As a result, e-cigarette liquid now falls under the tobacco category and is subject to a surtax of ₩1,823 per milliliter. The financial impact could be substantial. A 30 ml bottle of e-liquid previously sold in the ₩20,000 won price range could see its retail price quadruple under the revised framework. The anticipated increase has prompted many consumers to seek lower-cost alternatives through homemade mixing.
Known locally as “liquid kimjang,” the DIY trend refers to users purchasing nicotine bases, flavor concentrates, and other ingredients separately before blending their own vape liquids at home. The term “kimjang” originates from the traditional Korean practice of collectively preparing and storing large quantities of kimchi ahead of winter. The vaping community adopted the expression because DIY users similarly produce large batches of e-liquid for future use, often allowing mixtures to steep or mature over time.
Online communities dedicated to DIY mixing have expanded rapidly, sharing recipes, sourcing advice, and preparation techniques as more consumers look to avoid rising costs associated with commercially manufactured products. While some users view DIY mixing as a cost-saving measure that also allows greater customization of nicotine strength and flavor profiles, the growing practice is raising significant public health concerns.
One of the key risks is the potential for “tempering” – the addition of dangerous or unregulated substances beyond traditional e-cigarette constituents. As DIY practices become more widespread, concerns are growing that users may experiment with additives lacking toxicological evaluation or proper manufacturing oversight. Unlike regulated commercial products, homemade liquids may be produced without standardized measurements, ingredient verification, or quality controls. This creates risks of contamination, excessive nicotine concentrations, chemical instability, or the inclusion of substances not intended for inhalation.
The rise of “liquid kimjang” highlights the increasingly complex relationship between regulation, taxation, affordability, and consumer behavior in South Korea’s evolving nicotine market.
April 2026: South Korea Vape Prices Set to Surge as New Tobacco Taxes Take Effect
Vape prices in South Korea are set to rise sharply following a regulatory overhaul that brings liquid e-cigarettes – particularly those using synthetic nicotine – fully under the country’s tobacco taxation framework. The key driver of the price increase is the application of tobacco-related taxes and levies, which had previously not applied to many synthetic nicotine products due to a legal loophole.
Under the revised system, liquid e-cigarettes are now classified as tobacco products and subject to multiple layers of taxation, including individual consumption tax, tobacco tax, local education tax, and the national health promotion charge. This results in a tax burden of approximately ₩1,823 (US$1.23) per milliliter. For a standard 30ml bottle, this translates into around ₩27,000 in taxes even after a temporary 50% tax reduction, compared with typical pre-tax retail prices of ₩15,000–20,000. In effect, total prices are expected to more than double once the new regime is fully reflected in retail pricing.
To ease the transition, authorities have introduced a two-year grace period with reduced tax rates, but the structural increase in taxation is expected to drive sustained price inflation in the category. The policy aims to eliminate tax disparities between tobacco-derived and synthetic nicotine products, improve tax fairness, and strengthen public health regulation.
The market impact is expected to be significant. Products that previously competed on price – particularly synthetic nicotine vapes – will lose their cost advantage, forcing manufacturers and distributors to reprice and adjust product portfolios. The sharp increase in retail prices is likely to dampen demand in the short term and accelerate consolidation, while also increasing compliance costs across the supply chain. At the same time, the government expects the policy to generate substantial additional tax revenue and curb rising vape usage, particularly among younger consumers.
January 2026: South Korean Court Strikes Down Vape Liquid Tax Penalties Amid Broader Regulatory Shifts
A Seoul administrative court has ruled in favor of six importers of nicotine-containing e-cigarette liquids by annulling the National Health Promotion levies imposed on them by the Ministry of Health and Welfare. While the court agreed that the nicotine in the imported liquids could legally be treated as “tobacco” because it was derived from tobacco leaves, it found that the scale and calculation method of the levies were disproportionate and violated constitutional principles of proportionality and equality. The fines, up to ₩1 billion for one importer, were deemed effectively confiscatory and potentially crippling for business operations because they were calculated solely on a volume basis rather than accounting for nicotine concentration or commercial reality. The court also noted the inconsistency with previous administrative interpretations and customs practices, highlighting regulatory uncertainty in how vape liquids are treated under existing tax laws.
The case unfolds against a backdrop of rapid regulatory changes in South Korea’s tobacco and vaping framework. In late 2025, the National Assembly passed legislation formally classifying synthetic e-cigarette liquids as tobacco products subject to equivalent controls and taxation as combustible cigarettes – a significant tightening of rules after years of ambiguity. This broader reform aims to close loopholes, such as those previously allowing synthetic nicotine products to be treated as industrial goods with minimal oversight, but it has also fueled debate over tax fairness, administrative clarity, and impacts on the local vape market. Critics argue that uneven tax burdens across product types and abrupt shifts in legal status have created business uncertainty, even as policymakers push for stronger youth protection and revenue collection.
November 2025: SKE expands its retail footprint in Korea
The vape brand, SKE expanded its partnership with 7-Eleven Korea by listing its products in more than 5,700 stores across the country over the past six months and reaching nearly half of all 7-Eleven locations nationwide. Alongside the convenience retail channel, SKE has also strengthened its presence in Korea’s vape specialty channels, both online and offline, through collaborations with major players. Through these partnerships, SKE aims to broaden its influence among hobbyists and early adopters while reinforcing its reputation as a forward-thinking brand within the growing vaping culture.
SKE Crystal Bar TB1000 is the lead product in 7-Eleven and SKE Cloud Zero is the differentiated offering in the vape specialty channel. In the Vaporless Mode, SKE Cloud Zero produces zero visible emissions, enabling discreet use in shared spaces. The dual-mode system allows users to transition instantly from Vaporless Mode to Vapor Mode.
March 2025: Synthetic nicotine vapes sales are up +25% in S. Korea albeit from a small base
According to a report from the Korean Society for Smoking Cessation, synthetic nicotine vape sales increased by +24.6% in year-on-year basis to ₩19.9 billion ($14.7 million) in Q3 2024. Synthetic nicotine accounted for 97.2% of vapes sales, while natural nicotine is estimated to account for 2.8%. In the same period, heated tobacco sales increased only by 2% and cigarette sales decreased by 3.4%.
In South Korea, natural nicotine – extracted from tobacco – is subject to tobacco regulations while synthetic nicotine is not classified as tobacco under the current Tobacco Business Act and, thereby, is not subject to marketing restrictions and taxation. In February 2025, Planning and Finance Committee of the National Assembly reviewed a plan to apply tobacco regulations to synthetic nicotine. However, the plan was put on hold after the e-cigarette industry raised concerns on the commercial consequences of the plan and on the research findings of the harmful effects of the synthetic nicotine vapes.
