In an age where nearly everything can be purchased online, some items remain firmly restricted by law — pharmaceuticals, prescription glasses and lenses, and tobacco. Interestingly, alcohol sales have been partially liberalized for online channels, highlighting the contrast between the two.
Tobacco sales online remain taboo for discussion in many countries. Yet paradoxically, this has led to a rise in underage access to unregulated or “hybrid” tobacco products through alternative channels. Many experts argue that while youth protection and public health safeguards must remain, it is time to consider rational, controlled deregulation.
Lee Ki-young, Chair of the Good Regulation Forum’s Regional Regulation Committee, argues that legalizing online tobacco sales — while implementing a rigorous adult verification system — could enhance youth protection rather than weaken it. “A well-regulated digital system would make monitoring and oversight more transparent and efficient,” he noted.
This debate has resurfaced because the current ban on tobacco mail orders was introduced two decades ago, in 2004, under the Tobacco Business Act. At the time, it was easy for minors to bypass age restrictions with a parent’s ID number, making the law necessary. But the situation today is vastly different. Online identity verification technologies have evolved significantly, making age-restricted content and products far more tightly controlled.
For instance, Korea’s major telecom-based authentication app “PASS,” launched in 2019, saw verification usage increase by 25% in just three years — from 2.03 billion transactions in 2020 to over 2.5 billion in 2023. Experts argue that the traditional assumption — that face-to-face tobacco sales are inherently safer than online transactions — no longer holds true in this digital era.
The rapid shift toward online commerce also fuels this debate. According to the Ministry of Trade, Industry, and Energy, online channels accounted for 50.5% of Korea’s total retail sales in 2023, up from 37.8% in 2018. Even after excluding data from struggling platforms such as TMON and Wemakeprice, online sales still surpassed 50%. Meanwhile, offline sales have been declining consistently — showing that digital retail is now the dominant marketplace.
In comparison, alcohol has seen a partial online opening. Although direct “home delivery” is still restricted, consumers can now purchase beverages online and pick them up at nearby convenience stores or supermarkets through “smart order” services. CU, one of Korea’s largest convenience store chains, reported a 19.26% year-over-year increase in alcohol pick-up sales this year, following annual surges of 190.8% and 188% in 2022 and 2023 respectively.
Furthermore, the National Tax Service recently revised its rules to allow alcohol delivery alongside food orders through apps — effectively formalizing a previously gray area of the market. Even duty-free shops can now process online alcohol orders for airport pick-up.
Despite these relaxations, opinions remain divided over whether tobacco should follow the same path. Critics argue that expanding sales channels for a “harmful and addictive” product undermines public health. Accordingly, both the government and the National Assembly have largely avoided engaging in formal discussions on online tobacco sales. Even major tobacco companies publicly state that they have no plans to pursue the matter.
The World Health Organization’s Framework Convention on Tobacco Control (FCTC), ratified in 2005, underpins most tobacco-related regulations worldwide — including ingredient disclosure, advertising limits, price and tax measures, and restrictions on emerging tobacco products. The FCTC explicitly notes that “comprehensive non-price measures are effective means of reducing tobacco consumption.” In this context, limiting sales convenience remains a key control strategy.
Public health experts interviewed for this report were unequivocal: “There is absolutely no justification for permitting online tobacco sales,” they said, drawing a firm line.
Another significant issue is the potential economic blow to small business owners who hold licensed rights to sell tobacco — known as “tobacco permits.” The Korea Federation of Micro Enterprise (KFME) opposes any online deregulation, stating that “the existing system was designed to prevent uncontrolled distribution, youth access, and tax evasion. Relaxing it would undermine the very foundation of that framework.”
In 2023, tobacco accounted for 37.1% of average retail store sales, meaning even a slight shift to online channels could have direct and devastating financial consequences for small retailers.
Meanwhile, the U.S. has tightened restrictions through the Prevent All Cigarette Trafficking (PACT) Act, following reports of minors purchasing e-cigarettes via TikTok without any age verification. In the U.K., the proposed Tobacco and Vapes Bill, now under parliamentary review, seeks to expand regulations to include new forms of tobacco and vaping products. The bill has reignited debates between consumer convenience and youth protection, particularly around the introduction of an online sales license system.
In contrast, Canada allows licensed online tobacco sales in most provinces, and Germany has fully legalized online tobacco retailing. “Countries like Germany are not focused on whether to expand sales channels, but on how to manage them responsibly,” said Lee Ki-young. “This should apply not only to alcohol and pharmaceuticals, but to tobacco as well.”
The issue of tobacco sales channels also intersects with government fiscal policy. According to Korea’s Ministry of Economy and Finance, tobacco-related taxes generated ₩11.7 trillion (approximately USD 8.4 billion) last year. At the same time, the National Health Insurance Service (NHIS) has been locked in a 12-year legal battle seeking ₩50 billion (USD 36 million) in damages from tobacco companies over health-related costs.
Ultimately, policymakers face a delicate balancing act — between sustaining vital tax revenue and upholding the public health mission of reducing tobacco harm. As the digital economy continues to redefine how people buy and consume, this long-standing question remains: Can regulation keep up with reality — or will the marketplace move on without it?
EJ SONG
US ASIA JOURNAL
