KT&G Under Investigation by US Department of Justice

KT&G announced on Jan. 17 that it has been diligently cooperating with the U.S. government’s investigation into allegations of tobacco-related regulatory violations since 2021.

KT&G issued a statement on the day, stating, “The company has submitted a comprehensive document and materials regarding the regulatory compliance status of tobacco products currently being sold in the United States as the U.S. government ordered. We are also diligently answering related queries. We have not received any notifications or sanctions related to regulatory violations.” It further explained, “The investigation is currently ongoing, and details cannot be confirmed as the U.S. Department of Justice has requested confidentiality.”

KT&G disclosed such information through its 2022 annual report. In the report, KT&G stated, “The Korean headquarters and U.S. subsidiary are under investigation by the U.S. Department of Justice regarding the regulatory compliance status of tobacco products being sold in the United States following a comprehensive document submission order. The final results of the investigation and their impact cannot be predicted.”

KT&G has begun exporting tobacco to the United States since 1999. In 2010, it established a local subsidiary in the country. As of 2020, the sales of KT&G’s U.S. subsidiary amounted to 246.3 billion won (US$182.92 million), accounting for approximately 4.6 percent of total consolidated revenue.