By Timothy S. Donahue
Top Takeaways:
Global expansion: KT&G is planning to open a branch in Guatemala, marking its first presence in Central and South America.
Overseas growth: The company reported robust international cigarette sales in 2025, with overseas revenue exceeding domestic cigarette revenue for the first time.
Strategic foothold: The Guatemala office is expected to strengthen distribution channels and support regional market expansion.
KT&G is advancing plans to open a branch in Guatemala, marking its first operational base in Central and South America as it continues its international expansion.
According to filings with South Korea’s Financial Supervisory Service electronic disclosure system, KT&G’s management committee approved the Guatemala branch plan on Nov. 6, 2025. The company is now working on preparations including securing office space, hiring staff, and building operational systems for the new location.
The move aligns with KT&G’s broader plan to strengthen its international presence as global markets increasingly influence the company’s cigarette business. KT&G stated that the Guatemala office will act as a regional distribution hub and enable the company to respond more swiftly to market opportunities across Central and South America.
KT&G already sells cigarette products in parts of the region through distributors, but the company has not previously maintained a permanent operational office there. Opening a local branch is expected to help the company improve channel management, strengthen relationships with distributors and retailers, and find new sales opportunities.
The company’s international network has grown steadily in recent years. KT&G now has overseas subsidiaries in Indonesia, Russia, and Taiwan, along with branch offices in Romania, Mongolia, and China. The company also previously operated a U.S. subsidiary established in 2010, though that entity suspended operations in 2021.
KT&G executives have consistently highlighted that international markets are growing more crucial to the company’s long-term growth plan.
“Our overseas business continues to grow and play a key role in KT&G’s long-term strategy,” the company said in a recent earnings statement, noting that expanding international distribution remains a major priority.
Financial results highlight the shift. KT&G reported overseas cigarette revenue of about 1.88 trillion Korean won (US$1.3 billion) in 2025, a 29.4% increase from the previous year. The surge pushed overseas sales to 54.1% of total cigarette revenue, marking the first time international cigarette revenue has exceeded domestic sales.
Overall, KT&G reported 2025 revenue of about 6.58 trillion won (US$4.54 billion), increasing 11.4% year over year, while operating profit grew 13.5% to approximately 1.35 trillion won (US$931 million).
The company has increasingly depended on international markets to compensate for slower growth in South Korea’s domestic cigarette industry, where smoking rates have steadily decreased and competition from next-generation nicotine products has intensified.
With KT&G products already in several Latin American markets, the Guatemala branch could act as a gateway for wider regional expansion. Industry experts note that Central and South America remain appealing markets for tobacco companies seeking new growth opportunities as regulatory pressures and falling smoking rates challenge sales in many developed nations.
