[News Space=Reporter seungwon lee] KT&G is setting a record by surpassing its domestic sales as its overseas cigarette sales are expected to exceed 900 billion won in the first half of 2025. This shows that the 'K-cigarette' brand is establishing a strong position in Asia and other emerging markets beyond Korea.

Overseas Sales Leading Regions and Market Share

Indonesia accounts for the largest portion of KT&G's overseas sales, and the locally launched 'Lil Hybrid' product is driving local demand. The Indonesian cigarette market has traditionally been dominated by filterless cigarettes, but KT&G's innovative products are rapidly expanding their market share by targeting the premium market.

Mongolian market share exceeds 50.3%

As of the end of last year, KT&G had secured an overwhelming market dominance in Mongolia with a 50.3% share of the cigarette market. This is interpreted as a result of the strong local brand loyalty, distribution network expansion strategy, and preference for high-quality cigarette products.

Overseas Market Growth Drivers and Strategies

KT&G is focusing on customized marketing and product development that suits the culture and consumer tastes of each country, thereby enhancing its global competitiveness. In Indonesia, the 'Lil' series is very successful, and in Mongolia and CIS countries, the 'Esse' brand is very successful.

In line with the growth trend of non-combustible cigarettes, KT&G is accelerating its local market share and expansion with the 'Lil' series that takes into account local regulations and market conditions. Starting in the second half of 2024, it is expanding exports of non-combustible products to ASEAN countries, Russia, Central Asia, etc., and driving sales growth.

Increase in the proportion of overseas sales compared to domestic sales

As of the first half of 2025, KT&G's overseas sales accounted for approximately 55% of total sales, steadily increasing from 40% in 2019. This increase in overseas sales is an important growth engine that offsets the decline in domestic smoking rates due to low birth rates and strengthened health regulations.

Expert Reviews and Implications

Tobacco industry experts say that KT&G has made up for its sluggish domestic market performance to a large extent through overseas investment and has established itself as a ‘domestic representative global K-brand.’ In particular, its localized strategy, product innovation, and dominance in the e-cigarette market are cited as major strengths over its competitors.

According to the 2025 report by the Consumer Market Analysis Team of the Korea Institute for Industrial Economics & Trade, “KT&G is overcoming the limitations of the domestic market, where it is a traditional powerhouse, and raising the status of ‘K-tobacco’ in emerging Asian markets,” and “This is a representative case where brand competitiveness and localization strategies have borne fruit beyond simple export increases.”

On the other hand, the intensifying competition in overseas markets and the strengthening of regulations in each country are expected to remain risks. KT&G plans to respond through continuous research and development and strengthening its ability to respond to global policies.

KT&G is strengthening the global brand status of 'K-cigarettes' while solidifying its global growth that will surpass domestic sales by 2025.