KT&G Strengthens Local Market Penetration with Establishment of Taiwan Subsidiary

[Asia Economy Reporter Seungjin Lee] KT&G announced on the 24th that it has established a corporation in Taipei, the capital of Taiwan, and is officially stepping up efforts to strengthen its local competitiveness.

Since starting its first export to Taiwan in 2002, KT&G has successfully established brands such as Bohem, Esse, and Time in the local market, selling a total of 77.715 million sticks last year alone. This represents a growth of over 2200% compared to the first year when 33 million sticks were exported.

In particular, Bohem is very popular among trend-sensitive Taiwanese consumers in their 20s and 30s as well as office workers due to its unique cigar aroma and exotic taste. Introduced in Taiwan in 2010, Bohem has focused on localization efforts, including releasing limited edition packages in collaboration with famous Taiwanese graphic designers. As a result, Bohem accounted for 76% of KT&G’s total exports to Taiwan last year, driving sales as a key product.

Building on its progress in the Taiwanese market, KT&G plans to strengthen its market influence further by establishing a long-term business operation base through the newly established corporation. The corporation will form a marketing team to conduct thorough local market research and focus on developing brands that meet consumer demand. KT&G intends to invest generously in the Taiwan corporation to achieve this.

A KT&G official stated, “Taiwan, which succeeded in early COVID-19 prevention, has seen rapid recovery in private consumption, and its GDP growth rate this year is expected to exceed forecasts. By establishing a local corporation in Taiwan, a center of the Chinese diaspora economy and a region with high future growth potential, we will strengthen marketing and sales activities and lay the foundation for sustainable growth.”

Meanwhile, KT&G plans to accelerate its global business by expanding overseas corporation investments and increasing the number of countries it enters, in addition to Taiwan, to achieve its global TOP4 vision. Through this, it aims to increase the overseas share of domestic and international tobacco sales to 50% by 2025.

This content was produced with the assistance of AI translation services.