KT&G announced on Feb. 27 that it has signed a US$1.8 billion contract with Alokozay International of the United Arab Emirates that grants the Dubai-based company the right to sell its cigarettes in the Middle East and the Commonwealth of Independent States (CIS).
The figure represents 50.5 percent of the company’s sales in 2018. The contract will run for seven years and four months from the previous day of the signing to June 30, 2027.
KT&G said that this contract will provide a foundation for the long-term growth and profitability of its global tobacco business. The company is stepping up its efforts in overseas markets with the goal of joining the ranks of the global “big four” companies by 2025.
KT&G recently signed an e-cigarette export contract with Philip Morris International (PMI). KT&G will supply “Lil”' products to PMI for three years and PMI can sell them in countries worldwide except for Korea. The company plans to expand the number of export countries from 80 to 100 by aggressively developing new markets.