KT&G (CEO Baek Bok-in) has formalized an investment agreement with the Investment Coordinating Board of Indonesia to construct a new factory in East Java, which will serve as an export hub.

On the 6th of this month, a meeting was held at the Investment Coordinating Board's main office in Jakarta. CEO Baek Bok-in of KT&G and Bahlil Lahadalia, the Minister of the Investment Coordinating Board of Indonesia, and critical stakeholders discussed the plans and support measures for the new factory's construction.

Given the positive investment support expressed by the Investment Coordinating Board of Indonesia, KT&G plans to refine its investment strategies for constructing the new facility. The Indonesian Ministry of Investment has committed to providing full support and conveniences under local regulations. Once the specific investment amount, method, and target details are determined, KT&G will undertake necessary procedures, such as board resolutions.

The new factory in Indonesia aims to begin operations in 2026, and its products will be exported to markets in Southeast Asia and other overseas territories. Through this, KT&G intends to establish Indonesia as a production base for exported goods and focus on expanding its international market presence.

The investment plan aligns with the strategy announced at the "KT&G Future Vision Presentation" held last January. The company has unveiled a medium-to-long-term growth strategy for the next five years focusing on NGPs (next-generation products), health-functional foods, and global CCs (conventional cigarettes).

Moreover, based on the investment in core business sectors, the company aims to achieve a turnover of more than 10 trillion won by 2027. They are also committed to raising the proportion of global business sales to over 50% and the non-cigarette business sales proportion, including NGP and health-functional foods, to over 60%.

Minister Bahlil Lahadalia of the Investment Coordinating Board of Indonesia commented, "On behalf of the Indonesian government, we welcome KT&G's continued investment and will do our utmost to ensure the smooth progression of the investment plan."

CEO Baek Bok-in of KT&G stated, "Through the investment in the new Indonesian factory, we plan to accelerate further our expansion in Southeast Asia and other international markets." He added, "We will continue to seize opportunities in overseas markets and, through aggressive investments and innovation, leap forward as a global top-tier enterprise."