KT&G President Baek Bok-in.

KT&G saw overseas revenue top 1 trillion won annually last year for the first time since its establishment. 

KT&G said on Feb. 1 it chalked up a record 1,048 trillion won in overseas revenues in 2017, an 11.3 percent surge from 941.4 trillion won in 2016. 

KT&G also saw the number of cigarettes sold in foreign markets, including exports and overseas production, soar to 55.4 billion in 2017, a jump from 48.7 billion cigaretts sold in 2016.

KT&G, which began to export cigarettes abroad in 1988, has grown to become a global top-five tobacco company by entering 50 countries. The company, whose exports stood at 2.6 billion cigarettes in 1999, saw exports and overseas production soar to 55.4 billion cigarettes in 2017, a more than 20-fold jump in 18 years. KT&G achieved the feat following privatization. 

ESSE and PINE, KT&G’s mainstay brands, enjoy popularity in such places as Russia and the Middle East, the company said. Of late, the Korean tobacco company saw cigarette products tailored to meet local consumers’ needs enjoy an increase in such emerging markets as Africa and Central and South America. KT&G has production operations in Russia, Turkey and Indonesia. 

KT&G made the feat in overseas cigarette revenue on top of logging more than 1 trillion won in sales in the domestic cigarette and red ginseng market, to cap the so-called Triple Crown. The company chalked up 3 trillion won in combined sales in the three sectors overseas tobacco, domestic tobacco and red ginseng businesses in 2017, up 1.1 percent over the previous year but KT&G saw the three sectors decline to a combed 1.244 trillion won in operating profit last year, a 4.6 percent drop from 2016. 

The rise in operating profit was partly attributable to growing e-cigarettes sales, analyses indicate. 

KT&G plans to raise its dividend from 3,600 won last year to 4,000 won this year per share to strengthen shareholder-oriented management. KT&G President Baek Bok-in said, “Despite such unfavorable business conditions as a strong won, achieving 1 trillion won in overseas revenues takes on significance.” 

He added that his company will attach priority to exploring emerging markets with high growth potential this year.

ESSE, one of KT &G’s mainstay brands, enjoys popularity in Iran. (Photos: KT&G)