KT&G Corporation

01/13/2025 | Press release | Archived content

KT&G Strengthens Eurasian Market Presence with New Uzbekistan Subsidiary

KT&Gis set to bolster its presence in the Eurasian market by establishing a legal subsidiary in Uzbekistan. This move aims to facilitate the company's overseas market expansion and improve profitability through
a robust local business system.

In 2023, KT&G launched an office in Uzbekistan and began pioneering the market by exporting localized versions of its flagship ultra-slim cigarette brand ESSE, which holds the world's best-selling ultra-slim cigarette title.

As a result, seven variations of the ESSE brand achieved cumulative sales of 270 million cigarettes in Uzbekistan last year, with the "ESSE Change" variant-a long-standing bestseller-accounting for 64% of the total exports to the region.

KT&G plans to strengthen its competitiveness in the Eurasian market over the long term by converting its Uzbekistan office into a full-fledged corporate entity. The company aims to scale up its local workforce by more than fourfold and expand its distribution network by establishing detailed sales channels, further solidifying its market presence.

KT&G also plans to position ESSE as a leading brand in the Uzbekistan market, where the preference for ultra-slim cigarettes continues to rise. The intention is to drive revenue and profit growth through proactive market expansion efforts.

As part of its global business strategy, KT&G established a regional company-in-company (CIC) in Eurasia and Asia-Pacific last year to accelerate its international growth. The company currently operates in 132 countries worldwide, with six sales subsidiaries and three branch offices. Moving forward, KT&G will continue reinforcing its direct business system and enhancing profitability by expanding its global subsidiary network.

An official from KT&G stated, "The establishment of the Uzbekistan subsidiary marks a continuation of our journey toward becoming a 'global top-tier' company, following the establishment of our Kazakhstan subsidiary in 2023. Through ongoing investment and innovation, we will sustain our global business growth by reinforcing our local business systems."


(Photo 1)KT&G established a corporate entity in Uzbekistan.
The above photo shows KT&G members discussing in the Uzbekistan office.

(Photo 2)KT&G established a corporate entity in Uzbekistan.
The members of KT&G's Uzbekistan subsidiary pose for a group photo.