KT&G’s overseas sales are expected this year to surpass its domestic sales for the first time, according to a story in The Korea Herald.
The company said in an e-mail interview with the Herald that because various factors, including a fall in the number of smokers, had taken their toll of the domestic market, it was seeking stronger overseas sales.
‘The experts inside and outside KT&G agree that this year will be KT&G’s turning point for its overseas sales to top the home sales,’ the company was quoted as saying.
There will have to be a considerable shift in emphasis because last year KT&G’s domestic-to-overseas sales ratio stood at 6:4.
However, the value of its cigarette exports, WON533.1 billion, was up by 30.2 percent on that of 2013.
Currently KT&G’s focus is on the Indonesian market, which has a cigarette market twice the size of South Korea’s.
Indonesia was said to be experiencing economic growth and to have an open market policy.
At the same time, some markets in the Middle East were described as more challenging because of their political instability.
KT&G said it planned to set up additional overseas operations and facilities, potentially in Africa and Central and Latin America, where it does not have local bases yet.