KT&G Approves Plan to Establish Guatemala Branch as First Local Base in Central and South America

Key Takeaways

• KT&G has approved plans to establish a branch in Guatemala, its first local base in Central and South America.
• The company is preparing office space, staffing, and operating systems for a hub focused on distribution and channel expansion in the region.
• Overseas cigarette business posted strong growth in 2025, with overseas revenue exceeding domestic revenue as a share of total cigarette revenue for the first time.
• Overseas cigarette revenue in 2025 reached about KRW 1.8775 trillion (approximately USD 1.295 billion, based on KRW 1 = USD 0.00069).
• Company revenue in 2025 totaled about KRW 6.5796 trillion (approximately USD 4.540 billion), while operating profit was about KRW 1.3495 trillion (approximately USD 931 million).

2Firsts, March 9, 2026 

According to News1, KT&G (033780) is moving forward with the establishment of a branch in Guatemala, which would be its first branch in Central and South America. According to the Financial Supervisory Service’s electronic disclosure system, the management committee under KT&G’s board approved the related plan on November 6, 2025, and the company is currently preparing office space, staffing, and operating systems.

KT&G said the establishment of the Guatemala branch is intended to secure a distribution base in Central and South America and to expand overseas business more flexibly. The company previously established corporations in Indonesia, Russia, and Taiwan, and branches in Romania, Mongolia, and China, but it has no operating office in the Americas. Its U.S. corporation, established in 2010, temporarily suspended operations in 2021.

As KT&G cigarette products are already circulating in the Central and South American market, the new branch is expected to focus on local channel management and the expansion of new sales channels.

In terms of performance, the overseas cigarette business maintained strong growth. Overseas cigarette revenue in 2025 reached about KRW 1.8775 trillion (approximately USD 1.295 billion, based on KRW 1 = USD 0.00069), up 29.4% year on year. The share of overseas revenue in total cigarette revenue rose to 54.1%, surpassing the domestic share for the first time. Driven by overseas business, KT&G posted revenue of about KRW 6.5796 trillion in 2025 (approximately USD 4.540 billion, based on KRW 1 = USD 0.00069), up 11.4% year on year, and operating profit of about KRW 1.3495 trillion (approximately USD 931 million, based on KRW 1 = USD 0.00069), up 13.5% year on year.

Image Source: News1