Key Points
- KT&G has filed a corrective disclosure revising key terms of its 15-year partnership agreement with Philip Morris International (PMI).
- Following the revision, KT&G secures overseas commercialization rights for multiple heated tobacco technology platforms.
- The minimum guaranteed sales volume for lil enters a new cycle: from 2026 to 2028, starting at 11 billion units (the previous cycle, starting at 16 billion units, has ended).
2Firsts, December 12, 2025 — According to Newsis, KT&G on December 12 submitted a formal disclosure to South Korea’s financial regulator via the DART system, announcing a corrective filing to key contractual terms in its 15-year long-term partnership with Philip Morris International (PMI).
The disclosure shows that, following the revision, KT&G will obtain overseas commercialization rights for multiple heated tobacco technology platforms. At the same time, the previous cycle of the minimum guaranteed sales volume for lil-exclusive heated tobacco sticks—covering the period from 2023 through this year and starting at 16 billion units—has concluded.
KT&G said that from next year through 2028, a new minimum guaranteed volume cycle will begin, with the starting level set at 11 billion units, adding that the stability of the contract will be maintained.
As previously reported, KT&G entered into a 15-year agreement with PMI in 2023 to cooperate on the overseas sales of the heated tobacco product lil. Under the core arrangement, KT&G supplies lil products to PMI, while PMI is responsible for their sale in global markets outside South Korea.
Cover image source: Newsis
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