KT&G revised the 15-year cooperation agreement terms with Philip Morris International (PMI), and KT&G will obtain the overseas commercialization rights for multiple heated non-combustion products. It also adjusted the minimum guaranteed sales quantity arrangement for the “lil” exclusive heating tobacco cartridges, changing it from 16 billion units to 11 billion units.
Key Points Summary
-
KT&G has corrected and disclosed the key terms of its 15-year partnership agreement with Philip Morris International (PMI).
-
After the correction, KT&G has obtained the overseas commercialization rights for several heating non-combustion technology platforms.
-
The minimum guaranteed sales volume for “lil” has entered a new cycle: 11 billion units from 2026 to 2028 (the previous cycle’s starting point of 16 billion units has ended).
Formal Disclosure Filed with Korean Financial Regulator
December 12, 2025 — According to Newsis. KT&G submitted a formal disclosure document to the Korean Financial Regulatory Authority (DART) on December 12, stating that KT&G has made more comprehensive disclosures regarding the key contract terms of its 15-year long-term partnership with Philip Morris International (PMI).
KT&G Gains Overseas Commercialization Rights
The announcement indicates that through this correction, KT&G will obtain the overseas commercialization rights for multiple heating non-combustion technology platforms. At the same time, the minimum guaranteed quantity clause for the “lil-specific cartridge” sales has ended for the period from 2023 to this year. The minimum guaranteed quantity threshold for this period was 16 billion units.
New Minimum Guaranteed Quantity Cycle Begins in 2026
KT&G stated that from next year until 2028, it will enter a new minimum guaranteed quantity cycle. The starting point is 11 billion units. The company also emphasized that the stability of the contract will continue to be maintained.
Background of the 15-Year KT&G–PMI Partnership
It is reported that KT&G signed a 15-year cooperation agreement with PMI in 2023 to collaborate on the overseas sales of the heated non-combustible product “lil”. The core arrangement of the deal is that KT&G supplies the “lil” product to PMI, and PMI is responsible for selling it in global markets outside of South Korea.
Follow us to get more updates: @zumo.official
