KT&G Expands Global Airport Duty-Free Presence as Overseas Sales Grow

South Korean tobacco maker KT&G is expanding its presence in major airport duty-free markets, using its established position at Incheon International Airport to support a broader overseas growth strategy. The company has added retail footholds in Bahrain and Kyrgyzstan this year and recently introduced products at Istanbul Airport.

KT&G has sold cigarettes at Incheon Airport since the airport opened in March 2001. It now offers about 100 products there and ranks among the airport’s leading duty-free brands. The company led duty-free sales by brand for three consecutive years from 2015 through 2017. Its Incheon sales reached 159 billion won, or about $118 million, in 2017, nearly twice the sales of the second-ranked brand.

The expansion comes as Korea’s travel retail market benefits from a rebound in tourism. Foreign arrivals reached 10.7 million in the first half of 2026, an increase of 21.3 percent from a year earlier. Duty-free sales rose 11.2 percent compared with the second half of last year.

KT&G has used international travel retail exhibitions to build relationships with buyers and open new markets. Its participation in the TFWA World Exhibition in Cannes from Sept. 27 to Oct. 1 helped support entries into airport duty-free shops in Muharraq, Bahrain, and Bishkek, Kyrgyzstan. The company also attended industry events in Singapore and Germany this year.

At Istanbul Airport, KT&G launched five products from its flagship Esse brand in August. The airport handles roughly 84 million passengers annually and ranks among the world’s six busiest airports for international traffic. Esse generated about 2 trillion won in sales last year, with more than half coming from overseas markets.

The broader travel retail tobacco market is projected to rise from $8.04 billion in 2024 to $13.47 billion by 2029. Asia-Pacific accounted for 42 percent of the market in 2024, while airports represented 60.7 percent of sales by channel.

KT&G’s international push is also showing up in its financial results. Second-quarter revenue reached 1.7 trillion won, while operating profit increased 18.5 percent from a year earlier to 414.5 billion won. Overseas revenue rose 18.9 percent to 557.7 billion won. The company subsequently raised its full-year outlook to revenue growth of 5 to 7 percent and operating profit growth of 10 to 13 percent.

The airport expansion gives KT&G access to large numbers of international travelers while strengthening distribution beyond its home market. The company said it plans to deepen partnerships with overseas operators and continue building the global competitiveness of its brands.