Global tobacco giant British American Tobacco (BAT) Group is facing criticism for launching synthetic nicotine e-cigarettes in South Korea, exploiting a loophole in the country’s regulations. These new synthetic nicotine products are not classified as tobacco under current law, allowing BAT to bypass tobacco taxes.
BAT Rothmans, the Korean subsidiary of BAT Group, announced the launch of Nomad, a new synthetic vape product, on Nov. 25. Unlike conventional products containing naturally derived nicotine, Nomad uses synthetic nicotine. This marks the first time BAT has introduced synthetic nicotine products in the global market. Although synthetic nicotine e-cigarettes are already available in Korea, this is the first time a major tobacco company has formally released such a product.
Experts suggest that BAT’s move is aimed at avoiding tobacco taxes. Under current law, tobacco products are defined as “made from the leaves of the tobacco plant.” Synthetic nicotine, chemically manufactured, does not fall under this definition. As a result, liquid e-cigarettes containing natural nicotine are taxed at approximately 1,800 won per milliliter, while synthetic nicotine products remain exempt from tobacco taxes. Critics claim that BAT appears to be exploiting this legislative loophole to maximize profits.
“Synthetic nicotine poses the same health risks as natural nicotine, making it illogical to exempt it from taxation,” public health experts argue. The exemption also has significant financial implications. According to data by Rep. Song Eon-seok of the People Power Party, Korea has lost an estimated 3.38 trillion won ($2.5 million) in potential tax revenue over the past four years due to this regulatory loophole.
