KT&G to invest 4 trillion won over five years

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KT&G to invest 4 trillion won over five years

Published: 27 Jan. 2023, 15:57

KT&G's CEO Baek Bok-in presents the company's vision for 2027 at a declaration ceremony held in Seongdong District, eastern Seoul, on Thursday. [KT&G]

KT&G, Korea's largest tobacco and ginseng producer, will invest 4 trillion won over the next five years to achieve annual sales of 10 trillion won ($8.1 billion) by 2027, up from an estimated 5.9 trillion won in sales in 2022.

KT&G announced the company’s mid- to long-term vision at KT&G Sangsang Planet in Seongdong District, eastern Seoul on Thursday.

CEO Baek Bok-in introduced a growth strategy based on three core business areas: Heat-Not-Burn (HNB) products; dietary supplements; and the global conventional cigarette (CC) market.

KT&G will invest 4 trillion won in those key business areas over the next five years to boost the share of sales of HNB products and dietary supplements to 60 percent.

KT&G also said it will focus on global expansion of its rapidly growing HNB business.

In addition, the Korean tobacco firm will reinforce the overseas operations of its ginseng affiliate Korea Ginseng Corporation (KGC) with a focus on China and the United States.

The company plans to achieve sales of more than 2 trillion won each in the newer tobacco product business and dietary supplement businesses by 2027.

"We have been been breaking our sales record every year for the past five years by accelerating the global growth of our core businesses,” said Baek.

“To achieve higher future growth potential, we will quickly capture opportunities in the global marketplace and become a global top-tier company with aggressive investment and innovation.”

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]