[Featured Stock] KT&G Weakens on News of US Heated Tobacco Sales Suspension

[Asia Economy Reporter Park Jihwan] On the 15th, KT&G's stock price is weak. The news of the suspension of sales of heated tobacco products currently sold in the United States is interpreted as having a negative impact on the stock price.

As of 10:29 a.m. on the day, KT&G's stock price is trading at 83,700 won, down 2,300 won (2.67%) from the previous day.

The day before, KT&G stated, "Due to strengthened regulations on heated tobacco products in the U.S. and intensified market competition, there is a need to reconsider our U.S. business," and "We will suspend manufacturing, shipping, customs clearance, and product sales to local wholesalers of heated tobacco products currently sold in the U.S."

Kim Hyemi, a researcher at Cape Investment & Securities, said, "Since it was a foreign subsidiary that recently showed high growth, damage to sentiment (investment psychology) is inevitable."