KT&G to Enhance Competition in Eurasia with Uzbekistan Expansion.

Jan.14.2025

KT&G to establish legal entity in Uzbekistan to enhance competitiveness in Eurasian market, following successful localization efforts.

According to a report by N. News on January 13th, Korean Tobacco (referred to as "KT&G" hereafter) announced plans to establish a corporate entity in Uzbekistan, aiming to enhance their competitive edge in the Eurasian region.

Previously, KT&G had established an office in Uzbekistan in 2023 and exported localized products of the ultra-slim cigarette brand "ESSE". In 2024, sales of seven "ESSE" products in Uzbekistan totaled 270 million units, with the best-selling product "Esse Change" accounting for 64% of the exports.

By transforming its office in Uzbekistan into a legal entity, KT&G plans to enhance its long-term competitiveness in the Eurasian region. The company also plans to increase its local workforce by more than fourfold and establish a more comprehensive sales network to strengthen its market position.

On the other hand, KT&G established regional CICs (Corporate Independent Companies) in the Eurasia and Asia-Pacific regions last year. Currently, KT&G operates in 132 countries worldwide with 6 sales corporations and 3 offices. KT&G stated that it will continue to strengthen its direct business system to enhance profitability.

A representative from KT&G stated that establishing a legal entity in Uzbekistan is part of their continued goal to become a "global top-tier" company, following the establishment of a legal entity in Kazakhstan in 2023. This move is also part of their investment and innovation strategy. KT&G plans to drive global business growth by strengthening their local business systems in the future.

References:

[1] KT&G, 우즈베키스탄 법인 설립…'유라시아 시장 경쟁력 강화'

Also Read:

[1] KT&G Accelerates Overseas Expansion Through ESSE and RAISON Brands

[2] ITM Semiconductor Co..Ltd to Develop E-cigarette Devices for KT&G

[3] KT&G Accelerates Expansion Plans in Eurasian Market by 2025

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