KT&G CEO Bang Kyung-man, fifth from left, attends a ceremony marking the launch of the company’s new tobacco manufacturing plant in Almaty, Kazakhstan, April 22, 2025. Courtesy of KT&G

Major Korean tobacco company KT&G posted record sales last year, driven by the growth of its overseas markets supplied directly by its global manufacturing plants.

The company recorded 6.5 trillion won ($4.5 billion) in sales and 1.35 trillion won in operating profit. Sales reached a record high last year after six consecutive years of growth. Operating profit also jumped 13.5 percent from the previous year.

A key contributor to the strong performance was KT&G’s 16 marketing and manufacturing bases outside Korea. The company’s overseas subsidiaries are located in Russia, Indonesia, Uzbekistan, Kazakhstan, Taiwan and Turkey. It also operates local branches in Tajikistan, Kyrgyzstan, Mongolia, China and Europe.

Five global manufacturing plants are currently operating in Indonesia, Russia, Turkey and Kazakhstan. Another plant is set to be completed in Indonesia in the first half of this year. Altogether, the plants produce 65 billion cigarette sticks annually.

KT&G’s tobacco products have gained noticeable popularity in local markets. The company has maintained market dominance in Mongolia and Tajikistan. Its ultra-slim cigarette brand Esse has gained traction in Indonesia, while its Bohem brand has grown in popularity in Taiwan. Last year, for the first time, overseas sales of its electronic cigarette products surpassed domestic sales.

KT&G's manufacturing plant in Almaty, Kazakhstan / Courtesy of KT&G

The company’s expanding overseas market share has been evident over the past six years. Its total overseas sales stood at 206 billion won in 2020. By 2024, the figure had surged 245 percent to 713 billion won. The number of cigarette sticks sold overseas also increased from 10.3 billion to 21.9 billion during the same period.

“Our overseas bases were not established for short-term sales gains. They were built to create a sustainable global business structure for the long term, taking into account specific consumer demands across different regions,” a KT&G official said.

“Our continued sales growth over the past six years demonstrates our rising market value. We aim to further strengthen our profit structure by introducing new businesses and enhancing our existing ones,” the official added.

Source: Korea Times News