Korea Tobacco (KT&G) has decided to proceed with the establishment of a branch in Guatemala, its first in Central and South America. The company stated that it is preparing office space, staffing, and operational systems, and plans to use it as a distribution hub in Central and South America to flexibly expand its global business.
Key Highlights
- KT&G has received approval to establish a branch in Guatemala, its first local presence in Central and South America.
- The company is preparing office space, staffing, and operational systems, positioning it as a distribution and channel expansion hub in Central and South America.
Overseas Cigarette Business Expected to Surpass Domestic Revenue
Significant growth in overseas cigarette business in 2025: Overseas cigarette revenue will account for more than domestic revenue for the first time.
Overseas cigarette revenue is projected to reach approximately 1.8775 trillion won (approximately US$1.295 billion) in 2025.
Company revenue is projected to reach approximately 6.5796 trillion won (approximately US$4.54 billion) and operating profit is projected to reach approximately 1.3495 trillion won (approximately US$931 million) in 2025.
KT&G Moves Forward With Guatemala Branch Plan
On March 9, 2026, according to South Korean media outlet News1, Korea Tobacco & Food Co. (KT&G) is moving forward with the establishment of a branch in Guatemala, its first in Central and South America.
Approval Granted by Management Committee
According to information from the Financial Supervisory Service’s electronic disclosure system. KT&G’s management committee approved the relevant implementation plan on November 6, 2025, and is currently preparing for the establishment of an office location, staffing, and operational systems.
Guatemala Branch to Serve as Regional Distribution Hub
KT&G stated that the establishment of the Guatemalan branch aims to gain a distribution foothold in Central and South America, allowing for more flexible expansion of its overseas business.
Existing Global Network and Previous U.S. Operations
The company previously had subsidiaries in Indonesia, Russia, and Taiwan, and branches in Romania, Mongolia, and China, but currently has no operational offices in the Americas; its US subsidiary, established in 2010, temporarily ceased operations in 2021.
Focus on Channel Management and Market Expansion
KT&G cigarette products are already circulating in the Central and South American markets. The new branch is expected to focus on local channel management and expanding new sales channels.
