Philip Morris sues S.Korea over e-cigarette info disclosure

KT&G

01/10/2018 13:15

By Hyonhee Shin
    SEOUL, Oct 1 (Reuters) - Philip Morris Korea Inc. said on
Monday it has filed a lawsuit against the South Korean
government, demanding the disclosure of information on a recent
test that concluded electronic cigarettes contain harmful
substances. 
    Seoul's Ministry of Food and Drug Safety said in June after
a study that up to five cancer-causing substances were found in
the heated smoking devices, and the level of tar discovered in
two products, including Philip Morris'  PM.N  iQOS, exceeded
that of regular cigarettes. 
    The ministry's announcement ran counter to the
U.S.-headquartered company's claim that its electronic gadget is
less likely to cause disease than traditional cigarettes, citing
studies conducted in Germany, Japan and China. 
    Philip Morris said it raised a suit with the Seoul
Administrative Court after the ministry declined the firm's
request for the disclosure of data used in the test, which also
involved British American Tobacco's  BATS.L  Glo, and South
Korea-based KT&G Corp.'s  033780.KS  lil. 
    A ministry representative said that the agency "will follow
legal procedures as required."
    The company said the government study wrongly centred on
tar, which is only applicable to smoke created by regular
cigarettes, while the electronic devices do not generate smoke. 
    "Due to the focus on tar, the ministry's study resulted in
encouraging customers to stick to conventional cigarettes
instead of choosing products that contain sharply lower levels
of harmful compounds," Brian Kim, corporate affairs director of
the tobacco maker, said in a statement. 
    The smoking gadgets have seen a spike in popularity since
they launched in South Korea last year. 
    Sales of the devices hit a record of 30.4 million units last
May, with their collective stake reaching 10 percent for the
first time, but have fallen to around 9 percent until August due
to the drug agency's study, according to Seoul's finance
ministry. 

 (Reporting by Hyonhee Shin
Additional reporting by Ju-min Park 
Editing by Louise Heavens)
 ((hyonhee.shin@thomsonreuters.com; 822 3704 5658; Reuters
Messaging: hyonhee.shin.thomsonreuters.com@reuters.net))