South Korea Gazettes Law Amending Individual Consumption Tax Act

The South Korean Official Gazette Dec. 23, 2025, published Law No. 21206, partially amending the Individual Consumption Tax Act. The law includes measures: 1) applying a two-year 50 percent individual consumption tax rate reduction to cigarettes other than those manufactured wholly or partially using tobacco or tobacco nicotine as a raw material, like those manufactured with synthetic nicotine; and 2) allowing the deduction or refund of the tax on such cigarettes for which the tax has been paid or is due, regardless of whether the cigarettes are exported from a manufacturing facility or bonded area and returned to the manufacturer’s ...