KT&G said its heated tobacco brand lil has emerged as a major next-generation product (NGP) player within a decade of launch, driven by rapid device innovation and an aggressive patent strategy. Introduced in 2017 with initial sales of KRW 7.8 billion ($5.3 million), lil has now recorded cumulative sales of about KRW 4.3 trillion ($2.9 billion) as of the third quarter of 2025 and is on track to reach KRW 5 trillion ($3.4 billion), with average annual sales topping KRW 800 billion ($544 million) over the past three years. The brand holds more than 60% share of South Korea’s e-cigarette market and now operates three device platforms with frequent upgrades, supported by a sharp rise in NGP-related patent filings. Overseas momentum is also building, with international NGP sales up about 35% year over year to KRW 110.8 billion ($75.3 million) and products now sold in more than 30 markets, including through partnerships with Philip Morris International.
