KT&G Establishes Uzbekistan Subsidiary... Strengthening Competitiveness in the Eurasian Market

Entering into Market Share Expansion and Profitability Enhancement

KT&G announced on the 13th that it will establish a corporation in Uzbekistan to expand its overseas market and improve profitability, strengthening its competitiveness in the Eurasian region.

KT&G has established a corporation in Uzbekistan. The photo shows members of KT&G Uzbekistan corporation posing for a group photo. Photo by KT&G

KT&G established an office in Uzbekistan in 2023 and has been pioneering the market through the export of locally tailored 'Esse' products. Last year, seven 'Esse' brand products recorded sales of 270 million sticks in Uzbekistan. In particular, KT&G's steady seller product, 'Esse Change,' accounted for 64% of the export volume, receiving a positive response from the market.

Through the conversion of the Uzbekistan office into a corporation, KT&G plans to build long-term competitiveness in the Eurasian region. It plans to increase the local workforce by more than four times and establish detailed sales networks to strengthen its position in the market. Additionally, KT&G aims to develop 'Esse' as the representative brand in the Uzbekistan market and expand sales and profits through active market expansion.

Last year, KT&G established region-specific Company-In-Company (CIC) units in the Eurasian and Asia-Pacific regions and is expanding its global business. Currently, it operates six sales corporations and three branches, conducting business in 132 countries worldwide. KT&G plans to continue increasing overseas corporations to strengthen its direct business system and improve profitability.

A KT&G official stated, "The establishment of the Uzbekistan corporation is a continuation of the leap to the 'global top tier' following the establishment of the Kazakhstan corporation in 2023, as well as part of our investment and innovation efforts," adding, "We will continue to sustain global business growth by strengthening local business systems."