[Edaily Reporter Kim Ji-woo ] #KT&G Corporation has launched its first overseas direct business in heated tobacco products in Kazakhstan. In addition to its global sales partnership with Philip Morris International (PMI), the company plans to expand its e-cigarette business by leveraging the local subsidiaries and distribution networks it has established through its existing heated tobacco business.

KT&G Corporation announced that it launched the heated tobacco DEVICE “FLEX” and four varieties of the dedicated “FAIIM” sticks in Kazakhstan last October.

FLEX and FAIIM are rebranded versions of the “LIL Able” device and its dedicated “AIM” sticks, which are currently sold in South Korea, tailored to the local market. The devices themselves are identical; only the brand names have been changed. The company plans to initially supply these products to Almaty, Kazakhstan’s largest city, and gradually expand its local distribution network in the future.

The company is also operating a FLEX flagship store at Forum Mall, a major shopping center in Almaty. It plans to expand its engagement with local consumers through product promotion and customer consultations.

The company has decided to leverage the foundation it has built in the cigarette business—centered on its local subsidiary—to enter the e-cigarette market as well. Previously, KT&G Corporation had been working to establish a production plant and expand its distribution network in Kazakhstan.

This launch marks the first instance in which KT&G Corporation has directly entered the heated tobacco product (HTP) market following its acquisition of independent overseas commercialization rights this year. Until now, KT&G Corporation had been collaborating with PMI to introduce HTPs in 34 countries as of the end of last year.

KT&G Corporation is expanding its overseas e-cigarette business by maintaining its global partnership with PMI while simultaneously conducting direct operations in local markets. Through this strategy, the company plans to increase the share of NGP sales within its tobacco business to over 30% by 2030. During the same period, it aims to raise the share of overseas sales for its cigarette business and health functional food business to over 70% and over 30%, respectively.

A KT&G Corporation official stated, “The launch of Flex and Fame in the Kazakhstani market marks a new starting point for the expansion of our global NGP business,” adding, “We will continue to enter regions where we have not yet established a presence and strengthen the growth momentum of our global NGP business based on differentiated product competitiveness and business strategies optimized for local markets.”