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

Mar.09

KT&G has approved a plan to establish a branch in Guatemala, which will serve as its first local base in Central and South America. The company is currently preparing office space, staffing, and operating systems. KT&G said the branch is intended to secure a regional distribution base and will focus on local channel management and new sales channel expansion. Meanwhile, overseas cigarette revenue in 2025 exceeded the domestic share for the first time.

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

References:

[1] KT&G, 과테말라 지사 설립한다…중남미 시장 확대 박차

Also Read:

[1] KT&G Q4 and Full-Year 2025 Results: Global CC Strongest, NGP Penetration Expands

[2] BlackRock Enters Top Shareholder Ranks as KT&G Holding Reaches 5.01%

[3] KT&G’s Heated Tobacco Brand “lil” Named to Korea’s Brand Hall of Fame for Eighth Consecutive Year

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn

Notice

1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

Copyright

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com