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.
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