KT&G Revises Partnership Terms with PMI, Secures Overseas Commercialization Rights for Multiple Heated Tobacco Platforms

Dec.12

KT&G has revised the terms of its 15-year partnership agreement with Philip Morris International (PMI), securing overseas commercialization rights for multiple heated tobacco platforms and adjusting the minimum guaranteed sales volume for lil-exclusive heated tobacco sticks from 16 billion units to 11 billion units.

Key Points

KT&G has filed a corrective disclosure revising key terms of its 15-year partnership agreement with Philip Morris International (PMI).
Following the revision, KT&G secures overseas commercialization rights for multiple heated tobacco technology platforms.
The minimum guaranteed sales volume for lil enters a new cycle: from 2026 to 2028, starting at 11 billion units (the previous cycle, starting at 16 billion units, has ended).

2Firsts, December 12, 2025 — According to Newsis, KT&G on December 12 submitted a formal disclosure to South Korea’s financial regulator via the DART system, announcing a corrective filing to key contractual terms in its 15-year long-term partnership with Philip Morris International (PMI).

The disclosure shows that, following the revision, KT&G will obtain overseas commercialization rights for multiple heated tobacco technology platforms. At the same time, the previous cycle of the minimum guaranteed sales volume for lil-exclusive heated tobacco sticks—covering the period from 2023 through this year and starting at 16 billion units—has concluded.

KT&G said that from next year through 2028, a new minimum guaranteed volume cycle will begin, with the starting level set at 11 billion units, adding that the stability of the contract will be maintained.

As previously reported, KT&G entered into a 15-year agreement with PMI in 2023 to cooperate on the overseas sales of the heated tobacco product lil. Under the core arrangement, KT&G supplies lil products to PMI, while PMI is responsible for their sale in global markets outside South Korea.

Cover image source: Newsis

References:

[1] KT&G, 전자담배 '해외 상업화' 권리 취득…PMI와의 장기 파트너십 계약조건 정정

Also Read:

[1] KT&G Unveils lil hybrid 3.0 Misty Rose Limited Edition, Limited to 20,000 Devices

[2] KT&G to Complete New Indonesian Factory, Its Largest Overseas Production Hub

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