Tag: KT&G

Former Researcher Sues KT&G Over E-Cig Patents

Photo: Ian O’Hanlon
A former KT&G Corp researcher has filed a lawsuit against his former employer claiming that he was insufficiently compensated for inventing “the world’s first e-cigarette” while working at the firm, reports the Yonhap News Agency.
Kwak Dae-geun demands KRW2.8 trillion ($2 billion), reportedly the highest amount ever claimed by an individual in a South Korean legal action
According to the suit, Kwak joined the Korea Ginseng and Tobacco Research Institute in 1991 and began developing a tobacco-heating product in 2005.
In July that year, he registered his first patent for a prototype. In December 2006, he registered another patent for an upgraded version with a controllable heater.
Subsequently, he developed a full e-cigarette set, and registered a patent for part of the device in 2007 before leaving the company in 2010 as part of corporate restructuring.
After Kwak’s departure, KT&G allegedly registered patents for some of his technologies without recognizing his contributions.
In addition to his claim about compensation, Kwak contends that a prominent rival global tobacco firm was able to commercialize its internal heating-based e-cigarette model in South Korea in 2017 due to the absence of overseas patents.
Kwak’s requested damages reflects his portion of the revenue KT&G is expected to generate through Kwak’s patented technology during the 20-year patent term, as well as what KT&G would have earned if it had registered patents overseas.
KT&G counters that it has properly rewarded Kwan in the form of offering a technology advisory deal, and that Kwak had agreed not to raise any legal issues.
The firm also said the technologies invented by Kwak are not currently used in the products it is selling.
The e-cigarettes being sold by the global firm in question, meanwhile, did not involve technologies patented by Kwak, according to KT&G, which also noted that the rival firm had already commercialized early-model heated tobacco-type products in 1998.
April 24, 2024
KT&G Boosts Capacity for Next-Generation Products

Photo: KT&G
KT&G has expanded its Sin Tanjin next-generation product (NGP) factory to establish an innovation hub for electronic cigarette production.
During a ceremony celebrating growth the attended by CEO Baek Bok-in and over 40 employees, the company pledged to nurture its NGP segment into a leading business.
The South Korean tobacco company has installed three additional electronic cigarette stick production lines this year, bringing the total number to eight. It also established an automated warehouse capable of storing up to 360,000 boxes.
KT&G plans to further expand its production innovation hubs, focusing on domestic manufacturing facilities such as Sin Tanjin and Gwangju, to ensure a smooth response to the rapidly growing demand for its NGP products.
The expansion of the Sin Tanjin NGP factory is part of KT&G’s investment plan that was announced during the “Future Vision Proclamation” in January.
During that event, KT&G announced its strategy would focus on e-cigarettes, heated tobacco and the international expansion of its combustible cigarette business. The company intends to increase the revenue share of its noncombustible products to more than 60 percent by 2027 through investments and innovation.

The Sin Tanjin NGP factory will play a role as a growth engine that enhances the essential competitiveness of the NGP business, which is strengthening its market leadership.
Baek Bok-in , CEO, KT&G
In September, KT&G announced the construction of a new factory in Indonesia, which will be manufacturing for exports. In October, it broke ground for a new factory in Kazakhstan, establishing a foothold in Eurasia.
“The Sin Tanjin NGP factory will play a role as a growth engine that enhances the essential competitiveness of the NGP business, which is strengthening its market leadership,” said KT&G Baek in a statement.
“In the future, we will lead the growth of the NGP business based on innovative technology and advanced global partnerships and will leap to the ‘global top-tier’ through domestic innovative growth investments, including expanding production infrastructure.”
November 6, 2023
KT&G Set to Release New HnB Products in Korea

Photo: Tobacco Reporter archive
KT&G Corp. will launch new heat-not-burn products in South Korea to strengthen its electronic nicotine devices lineup, reports the Yonhap News Agency.
The South Korean cigarette manufacturer will release Lil Able and its premium version, Lil Able Premium, on Nov. 16.
KT&G’s third-quarter net profit jumped 29 percent from a year earlier on increased exports and a strong U.S. dollar. Currently, the company earns 90 percent of its sales from the cigarette business division and 10 percent from the heat-not-burn division.
The company has been stepping up efforts to increase sales in the noncigarette business division.
From January to September, net income climbed 21 percent to KRW1.06 trillion from KRW878.58 billion in the same period of last year.
On Nov. 4, the company announced a KRW350 billion share buyback to boost shareholder returns.
November 9, 2022
KT&G’s Lil Now Available in 20 Countries

Photo: KT&G
KT&G has launched its heat-not-burn product Lil in more than 20 markets within two years after signing a supply agreement with Philip Morris International for overseas sales of Lil in early 2020, the South Korean company announced on its website
Last year, KT&G and PMI launched Lil Solid 1.0 in Russia and Ukraine, and Lil Hybrid 2.0 in Japan. This year, the two companies expanded into other markets including Kazakhstan, Serbia and Armenia, with Lil Solid 2.0 as the flagship product. This August, an announcement was made that Lil was launched in a total 10 markets globally, Albania being the latest market at the time.
KT&G added additional markets in the fourth quarter this year. In November, Lil debuted in Guatemala, the first market in Central America, and the company expanded into the Asian market further, launching Lil in Malaysia after Japan. Additionally in the same month, Lil Solid 2.0 and its dedicated stick Fiit were launched in Italy.
Lil Solid 2.0 is a second-generation model of KT&G’s heat-not-burn products. It boasts improved battery performance and induction heating technology, and it comes in two colors, “stone grey” and “cosmic blue” outside Korea.
The dedicated sticks come in a total of eight variants including Fiit Regular and Fiit Crisp, and a new variant, Fiit Alpine, has been launched in the fourth quarter this year. Two to five variants have been launched in each country‒tailored towards consumer taste preference.
“Lil was able to quickly expand internationally thanks to Lil’s innovative technology in addition to PMI’s commercial resources and infrastructure,” said Wang Seop Lim, chief of KT&G’s next-generation products division. “We will continue to provide high quality products to consumers outside Korea through strategic collaboration with PMI going forward.”
December 20, 2021
KT&G Strengthens Grip on Korean ENDS Market

Photo: KT&G
KT&G’s share of the South Korean market for electronic nicotine delivery systems (ENDS) rose to a record 40.7 percent by the end of September, reports The Pulse News.
The company’s performance is driven by the success of new tobacco sticks, such as Fiit and Miix, which are compatible with its heat-not-burn cigarette brand Lil.
Cumulative sales of Lil devices surpassed 4 million units this year, compared with 3.22 million in 2020.
The company’s key growth driver has been Lil Hybrid 2.0, which combines KT&G`s proprietary technology using cartridge and stick.
KT&G is also strengthening the lineup of dedicated sticks for its devices. The lineup of Fiit and Miix sticks almost doubled from 11 types in 2019 to 20 today.
The Lil brand has been well received internationally, as well. In a global partnership with Philip Morris International, the KT&G product is now sold in 10 countries, including Russia, Ukraine and Japan.
December 2, 2021
KT&G to Launch Lil Solid in Eastern Europe, Central Asia
KT&G launched its heated tobacco product (HTP), lil SOLID 2.0, in four countries – Armenia and Serbia in Eastern Europe and Kazakhstan and Kyrgyzstan in Central Asia in the second quarter of this year. KT&G is now exporting the lil SOLID series to seven countries and plans to ship them to more countries in the near future.
Credit: KT&G
The latest version of the lil SOLID series the tobacco firm introduced in 2017, the lil SOLID 2.0 has an upgraded design and performance. Lil SOLID is an HTP used to smoke Fiit tobacco sticks, according to the Korea Times. The new version was launched first in the Korean market in January and customers praised the products product for the battery life offered and its induction heater system.
“Our product, lil, is gaining popularity in the export markets thanks to our collaboration with Philip Morris International,” Lim Wang-seop, head of KT&G NGP Business Division, said during a conference call held in February. “We originally set a goal of entering a single-digit number of countries this year, but we have changed it to the double digits.”
KT&G previously entered the overseas markets in August 2020, with Russia as the first export country for its very first lil SOLID product. One month later, the tobacco firm started selling the e-cigarette in Ukraine as well.
In the following month, KT&G also advanced into the Japanese market with lil HYBRID 2.0 and MIXX. The product was only available in Fukuoka and Miyagi first, but after the had gained popularity in just four months, KT&G decided to expand across the country.
Japan is globally the largest consumer of e-cigarettes and is a market where various products are vying for market share. Industry sources say that KT&G’s hybrid e-cigarette successfully differentiates itself from the existing products and has received positive feedback.
August 4, 2021
Lil Moves into Southeastern Europe and Central Asia

Lil Solid 2.0 with Armenian health warnings
(Phot: KT&G)
KT&G’s Lil Solid 2.0 device and its Fiit heated-tobacco stick continues its global expansion with new launches in Central Asia and Southeastern Europe.
As part of a collaboration agreement between KT&G and Philip Morris International, Lil Solid 2.0 has been introduced into four Eurasian countries during the second quarter of 2021.
The device and its consumables debuted in Armenia on June 14. The products were also commercialized in Serbia and Kyrgyzstan on June 3 and 7, respectively. Lil Solid 2.0 and Fiit were previously introduced in Kazakhstan on May 13.
Lil Solid 2.0 is a second-generation model of KT&G’s heat-not-burn product with enhanced performance and design to improve consumer satisfaction. The product was first launched nationally in Korea in January this year. According to KT&G, it gained significant traction with its upgraded battery efficiency and induction heating technology.
The Lil Solid 2.0 device is available in two colors, Stone Grey and Cosmic Blue, in its new markets. The sticks come in seven types, including Fiit Regular, Fiit Viola And Fiit Crisp. Three or four types are sold in each country depending on the market situation.
Following the recent commercialization of Lil Solid 2.0 in four new markets, the Lil brand now is present in seven markets outside of South Korea. Previously, varieties of the brand were introduced in Russia, Ukraine and Japan.
“As Lil Solid 1.0 and Lil Hybrid 2.0 have been well received in their respective markets, we look forward for encouraging performance from Lil Solid 2.0 as well,” said Wang Seop Lim, chief of KT&G’s next-generation products business division, in a statement. “We will continue to provide broader choices to consumers outside Korea in the second half of this year through collaboration with PMI.”
June 16, 2021
KT&G to Launch Lil Hybrid 2.0 in Japan

Photo: KT&G
KT&G will launch its Lil Hybrid 2.0 system Miix in Japan on Oct. 26 through its partnership with Philip Morris International (PMI), reports The Korea Times.
Unlike in Russia and Ukraine, where KT&G released Lil Solid, the Japan will get a Lil Hybrid 2.0 and a dedicated Miix stick. The first products to be sold will be available in matte black, cobalt blue, prism white and metallic bronze.
Consumers can choose from three stick types: Miix Regular, Miix Ice and Miix Mix.
“We will continue to provide various options to consumers in overseas markets through continuous cooperation with PMI,” said Lim Wang-seop, head of KT&G’s next-generation product business division.
October 23, 2020
Ukraine Latest Market for KT&G’s e-Cigarette ‘Lil SOLID’

Lil Solid device from KT&G
KT&G’s cigarette-type e-cigarette, Lil SOLID, and its exclusive heatstick, Fiit, were launched in Ukraine on Sept. 7.
This is the second achievement of collaboration between KT&G and Philip Morris International (PMI) following the launch of the product in Russia, according to an article in Business Korea.
KT&G and PMI are stepping up their efforts to penetrate the global e-cigarette market as they expanded their presence to Ukraine in Eastern Europe about three weeks after the launch of Lil SOLID in Russia on Aug. 17. Ukraine has a population of about 42 million. Like Russia, Ukraine has many consumers who have interest in e-cigarettes.
In Ukraine, Lil SOLID comes in three colors — dark navy, white and blue. Its exclusive stick also comes in three types — Fiit REGULAR, Fiit VIOLA, and Fiit CRISP. They are the same products as those launched in Russia.
Under the deal with KT&G, PMI will fully manage product sales by utilizing its resources, knowledge and infrastructure in the Ukrainian market.
September 10, 2020
KT&G Exporting Heat-Not-Burn Device to Russia

KT&G started exporting its e-cigarette heating devices to Russia last month in accordance with the company’s agreement with Philip Morris International (PMI). The agreement allows the two parties to collaborate on promoting global marketing campaigns, according to a press release.
During a conference call upon the announcement of its second-quarter results, the company confirmed an analyst question that won12.5 billion ($10.54 million) worth of e-cigarette devices were exported to Russia throughout last month. KT&G signed a pact for strategic collaboration with its rival PMI in January, according to a story in The Kores Times.
“It is true that e-cigarette devices were exported last month. We plan to announce further details on the outcome of the PMI deal in the near future,” the company said during the call. The partnership is calling for KT&G to export its “lil” tobacco heating devices and tobacco sticks worldwide through PMI’s global sales network spanning 180 international markets, without specifying which markets the two companies will focus on.
Some questions have persisted over the progress of the deal so far, as no visible outcome has been achieved over the past six months since the agreement was made. However, as exports have now begun, KT&G’s effort to expand its e-cigarette presence is anticipated to pick up momentum.
The export came after heat-not-burn (HNB) tobacco products’ domestic market penetration rate declined for the second consecutive quarter. The rate stood at 13 percent at the end of last year, but declined to 12.6 percent in the first quarter and 12.4 percent in the second quarter. The company, however, said this does not mean a deadlock in HNB products’ growth, citing the expansion in overseas markets.
“From a future business standpoint, the overall heat-not-burn (HNB) tobacco market is expected to grow,” the company said. “When the new products are introduced, the market is bound to grow. While there would be some minor impact from governments’ policies and market events, there is no doubt about the growth trajectory.”
August 6, 2020