KT&G's Midterm Plan: Doubling Sales by 2027

Feb.02.2023
KT&G's Midterm Plan: Doubling Sales by 2027
KT&G plans to invest $3.1 billion in e-cigarette and ginseng health products and double sales by 2027.

KT&G has recently launched a midterm business plan.


According to the plan, KT&G will invest a total of 3.9 trillion Korean won (3.1 billion US dollars) by 2027, with a focus on its electronic cigarette business (including overseas operations) and health supplements containing ginseng.


KT&G has plans to increase its sales revenue to over 100 trillion Korean won by 2027, a 73% growth compared to the estimated sales revenue of 59 trillion Korean won in 2022.


Bang Kyung-man, the Executive Vice President of KT&G, announced that the company now sells its heated non-combustible cigarette brands in 31 different countries, with a primary focus on the European market. Since partnering with various companies, the sales of its product, "lil," have quadrupled. The company is also considering releasing sales data related to "lil," which has not yet been disclosed due to a partnership agreement with PMI.


The company also presented its business expansion strategy, aiming to obtain more than half of its sales revenue from overseas operations by 2027. It is reported that in 2022, about 33% of KT&G's sales revenue comes from overseas operations.


According to Bang, KT&G is considering Kazakhstan and Eastern Europe as potential locations for a new factory. In order to raise the necessary funds, KT&G may sell some of its real estate assets and borrow from banks.


References:


KT&G has rejected the idea of spinning off its ginseng unit and instead plans to double its sales by 2027.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
A former FDA toxicologist has questioned whether the agency fully assessed the material used in ZYN nicotine pouches before authorizing them for sale, raising concerns over possible microplastic exposure, according to STAT and The Examination.
Jul.16
Italy Fines PMI €7 Million Over Misleading ‘Smoke-Free Future’ Marketing Claims
Italy Fines PMI €7 Million Over Misleading ‘Smoke-Free Future’ Marketing Claims
Italy’s Competition and Market Authority (AGCM) has fined Philip Morris Italia €7 million, finding that the company’s use of “smoke-free future” and related claims in promoting products such as IQOS, VEEV and ZYN could mislead consumers.
Jun.16
Canada Recalls Siberia and ZYN Nicotine Pouches Over Unauthorized Sales
Canada Recalls Siberia and ZYN Nicotine Pouches Over Unauthorized Sales
Health Canada has issued a nationwide recall for nicotine pouch products sold under the Siberia and ZYN brands, citing a lack of market authorization. All affected lots are subject to the recall.
Jun.15
Special Report | China Opens Draft Mandatory Heated Cigarette Standard for Comment, Multiple Heating Technologies Remain in Scope
Special Report | China Opens Draft Mandatory Heated Cigarette Standard for Comment, Multiple Heating Technologies Remain in Scope
China’s State Tobacco Monopoly Administration (STMA) has released a draft mandatory national standard for heated cigarettes, setting out detailed requirements for tobacco sticks, heating devices and aerosols. The proposal treats the stick and device as parts of the same product system, focuses on minimum safety and quality requirements, and leaves several heating architectures within scope.
Special Report
Jul.29
Italian Court Ends Six-Year Cigarette Excise Dispute, Rejecting Damages Claim
Italian Court Ends Six-Year Cigarette Excise Dispute, Rejecting Damages Claim
Italy’s Lazio Regional Administrative Court has dismissed an appeal by Italian Tobacco Manufacturing and Manifattura Italiana Tabacco over the cigarette excise calculation mechanism, upholding the minimum tax burden rules and excluding compensation for smaller tobacco operators.
News
Jun.26 by 2Firsts Perspectives
BAT Regional Director Fred Monteiro Supports Spain’s Nicotine Rules but Opposes 0.99mg Nicotine Pouch Limit
BAT Regional Director Fred Monteiro Supports Spain’s Nicotine Rules but Opposes 0.99mg Nicotine Pouch Limit
Spanish newspaper El Confidencial interviewed Fred Monteiro, Regional Director for Americas and Europe at British American Tobacco (BAT). Monteiro said BAT supports setting regulatory limits for nicotine products but opposes Spain’s proposed 0.99mg nicotine-per-pouch limit, arguing that such a restriction could affect adult smokers’ transition to alternatives. He said nicotine regulation should be based on scientific evidence and harm reduction principles. Monteiro also said smoke-free products now account for around 25% of BAT’s Americas and Europe business and nearly 30% of its Europe business
BAT
Jul.30