Cigarette maker KT&G is expected to see record high exports in 2017 as it pushes ahead in foreign markets in pursuit of becoming one of the top four global tobacco companies by 2025.

As of the end of the third quarter, KT&G had seen 802.5 billion won ($737.2 million) in cigarette sales abroad, with overseas sales making up 36 percent of the company‘s total earnings. Industry analysts are expecting overseas sales to break 1 trillion won for the first time this year.

This year’s strong performance follows a record high in 2016, when KT&G sold 48.7 billion sticks worth 941.4 billion won in roughly 50 countries. 

The company has been focusing on main overseas markets in Russia and the Middle East, as well as developing customized products for new emerging markets in Central and South America and Africa.

On Dec. 5, the company was recognized by the Korean government with the $800 million Export Tower Award.

At the end of November, KT&G announced a new plan to quadruple its overseas sales by 2025. The company will establish regional headquarters for the Asia-Pacific, Americas, Africa and Eurasia regions to create brands that meet consumer needs.

KT&G has been exporting cigarettes since 1988, when it sold 148 million sticks in 16 countries. In 2015, cigarettes sold abroad surpassed the number of cigarettes sold in Korea for the first time.

In 2016, the Middle East made up 54.3 percent of all overseas sales for KT&G, followed by the Asia-Pacific region (23.7 percent). The company’s Esse brand made up 58.1 percent of all its sales abroad.

“KT&G’s localized product development and brand competitiveness has led to strong sales overseas,” said an official with the company. “We will continue to aggressively pursue new markets to solidify our place as a global firm.” 

By Won Ho-jung (hjwon@heraldcorp.com)