South Korean tobacco manufacturer KT&G Corp. established a subsidiary in Uzbekistan, intensifying its push into Central Asian markets where it sees growing demand for its flagship Esse cigarettes.
The move follows the company’s subsidiary launch in Kazakhstan and comes as KT&G seeks to strengthen its position in Eurasia, where it sold 270 million units of Esse products last year. The Esse Change variant accounted for nearly two-thirds of exports to Uzbekistan in 2022.
KT&G plans to quadruple its workforce in Uzbekistan and develop a more comprehensive sales network, according to a company statement. The expansion adds to KT&G’s existing network of six sales subsidiaries and three branches serving 132 countries.
The company is capitalizing on its recent reorganization that created independent regional units for Eurasia and Asia-Pacific operations. While KT&G highlighted these moves as steps toward becoming a top-tier global player, it faces competition from established international tobacco giants in the region.
The tobacco maker’s focus on Uzbekistan comes as cigarette companies increasingly look to developing markets to offset declining smoking rates in more mature economies.
