Industry Revenues:

• Tobacco: approx. 60%
• Ginseng products: approx. 25%
• Others (including health products and real estate): approx. 15%

TOP 3 Markets:

• South Korea: approx. 45%
• Middle East: approx. 20%
• Southeast Asia: approx. 15%

KT&G Corporation generates the majority of its revenues from the tobacco industry, with ginseng products also making a significant contribution. The domestic market in South Korea remains the largest single market for the company, followed by a strong export business to the Middle East and Southeast Asia. These markets are crucial for the growth and stability of the company as they represent a diversified source of income.

Production sites of KT&G Corporation:

KT&G Corporation, a leading tobacco company in South Korea, mainly produces its products in South Korea. The main production facilities are located in the cities of Daejeon, Gwangju, and Yeongju. These locations are strategically chosen to efficiently serve both the domestic and export markets.

In addition, KT&G has expanded its production capacities internationally to better serve the global market. This includes production facilities in countries such as Turkey and Indonesia, which serve as important export hubs for the Asian and European markets.

The international expansion of production capacities enables KT&G to strengthen its market presence and respond flexibly to demand in different regions.

Revenue Growth: Estimated 5-7% annually (2025-2027)

Strategic Focus Areas:

1. International Expansion: In recent years, KT&G has increasingly focused on entering new markets outside of South Korea, particularly in Southeast Asia and the Middle East. These regions offer significant growth potential due to growing populations and increasing demand for tobacco products.

2. Diversification of Product Portfolio: The company is investing in the development of new products, including heated tobacco products and e-cigarettes, to meet changing consumer preferences and address regulatory challenges.

3. Sustainability Initiatives: KT&G has identified sustainability as a key component of its corporate strategy. This includes both environmental and social aspects to ensure long-term stakeholder acceptance and trust.

KT&G's strategy aims to promote growth through geographic diversification and product innovations, while also focusing on sustainability to address industry challenges.

Main raw materials: Tobacco leaves, flavorings, packaging materials
Main importing countries: Brazil, Zimbabwe, USA, Indonesia

KT&G Corporation mainly imports tobacco leaves, which are essential for the production of their tobacco products. These are sourced from countries such as Brazil, Zimbabwe, and the USA, known for their high-quality tobacco plants. In addition, the company imports flavorings and packaging materials to ensure the quality and presentation of their products. Indonesia is also an important supplier, especially for specific flavorings and packaging components.

This diversification of sources enables KT&G to optimize costs and ensure supply security.

Market share in South Korea: approximately 60% (2023)
International presence: Over 50 countries (2023)
Research and development investments: 5% of revenue (2023)

KT&G Corporation, as a leading tobacco manufacturer in South Korea, holds a significant market share of about 60% in the domestic market. This gives the company a strong competitive advantage, especially due to its established brand awareness and consumer loyalty.

Internationally, KT&G has expanded its presence to over 50 countries, reducing its dependence on the domestic market and making the company more resilient to local market fluctuations. This global expansion further strengthens the competitive advantage by diversifying revenue sources.

Additionally, KT&G invests approximately 5% of its revenue in research and development, indicating a strategic focus on innovation and product diversification. This allows the company to adapt to changing consumer preferences and tap into new market segments, thereby securing the competitive advantage in the long term.

Institutional Investor Share: 52% (estimated, 2025)
Insider Buys/Sells: No significant transactions reported (2025)

The institutional investor share in KT&G Corporation is estimated to be around 52%. This reflects the interest of large investment funds and institutional investors who invest in the company to benefit from its stable dividends and market position.

Regarding insider transactions, there were no significant buys or sells in 2025 that could indicate a change in the management's confidence in the company's future development. This can be interpreted as a sign of stable corporate governance and a balanced trust in the current corporate strategy.

Market share of KT&G Corporation: Estimated 60% (2025, based on historical data and market analysis)

Major competitors and their market shares:

1. KT&G Corporation: 60%
2. Philip Morris International: 15%
3. British American Tobacco: 10%
4. Japan Tobacco International: 8%
5. Imperial Brands: 5%
6. Other smaller companies: 2%

KT&G Corporation is the leading provider in the Korean tobacco market and holds a significant estimated market share of 60%. This is attributed to their strong brand presence, local market knowledge, and wide product portfolio.

KT&G's moat lies in their dominant market position in Korea, their ability to quickly adapt to regulatory changes, and their innovation in the field of smoke-free products. Compared to international competitors, KT&G has the advantage of being more locally rooted, which is crucial in a heavily regulated market like Korea.

However, international companies like Philip Morris and British American Tobacco have the advantage of global presence and greater financial resources, allowing them to invest in research and development to remain competitive in the long term. KT&G's moat could be at risk if these companies adjust their strategies and aggressively expand into the Korean market.

Revenue Growth: 4.8% (2024) Profit Growth: 3.5% (2024) Market Share in Domestic Tobacco Market: 60% (2024)

KT&G Corporation achieved a moderate revenue growth of 4.8% in 2024, attributed to stable demand in its core markets. Profit growth was at 3.5%, indicating effective cost control and production efficiency improvements.

The company continues to hold a dominant market share of 60% in the domestic tobacco market, highlighting its strong market position. This market position provides KT&G with a solid foundation for stable revenues and enables the company to benefit from price changes and new product innovations.

Additionally, KT&G has invested in diversifying its product portfolio in recent years, including health and wellness products, opening up future growth opportunities. These strategic initiatives could further strengthen the company's long-term growth potential.

Overall, KT&G could be an attractive investment for investors seeking a company with stable revenues and a strong market position. The diversification strategy and solid market position provide a good basis for future growth.

Dividend Yield: 4.5% (2024) Dividend History: Steady payout over the last 10 years

KT&G Corporation is known for its reliable dividend policy. The company has consistently distributed dividends in recent years, indicating a solid financial foundation and stable earnings.

The dividend yield of 4.5% in 2024 shows that KT&G continues to strive to provide shareholders with an attractive return. The continuous payout over a decade speaks to the reliability of the company's dividend policy.