The Tesla of E-Cigarettes... KT&G's 'Lil' Accelerates with Advanced Evolution

Outstanding Quality and Innovative Technology
Opening a New Era of Electronic Cigarettes

KT&G's heated tobacco brand 'lil' is making waves in both domestic and international markets. KT&G 'lil' was the first to introduce proprietary technology combining sticks and liquid cartridges, and has been recognized as the 'Tesla' of the e-cigarette industry by incorporating a user-customized AI system into its devices.

According to industry sources on the 6th, KT&G was the first in the industry to introduce smart AI features in 'lil Able 1.0' and recently provided an even more advanced user experience with the upgraded version 'lil Able 2.0'. Released in June, lil Able 2.0 offers two usage modes, 'Balance Mode' and 'Classic Mode', allowing users to choose their smoking sensation. It is also designed so that one device can use three types of sticks: Real, Granula, and Vapor sticks. Additionally, convenience features such as reduced preheating time, pause function, and fast charging technology have been significantly enhanced.

Image of the Lil Able 2.0 product released by KT&G in June this year. Provided by KT&G

Because of this, KT&G's 'lil' is often compared to Tesla, which revolutionized the electric vehicle market. The commonality between the two companies is their prioritization of quality and user experience. Tesla maximized consumer convenience with an intuitive user interface and a global charging network, while lil expanded consumer choices through diverse designs and differentiated usability.

KT&G has strengthened its unique competitiveness through scientific capabilities and innovative platforms to expand future growth potential and create new opportunities in the e-cigarette business. As a result, as of the third quarter of this year, KT&G holds approximately 68% device market share (based on CVS) and about 46% stick market share (based on CVS) in the domestic next-generation tobacco business sector, steadily driving market growth.

The capital market also holds a positive outlook on KT&G's NGP (Next Generation Products) business. Ji-hye Jang, a researcher at DS Investment & Securities, said, "KT&G is continuously expanding NGP sales through competitive platform development and active new product launches." She added, "With the release of various platforms and sticks such as lil Hybrid, lil Able, and lil Solid, market share expansion and increased stick sales based on product competitiveness are being observed." She further stated, "KT&G's NGP sales are expected to grow to 2.08 trillion KRW by 2027, accounting for 35% of total tobacco sales."