KT&G unveils heat-not-burn (HNB) e-cigarette

The Korea Times

The Korea Times

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Tue, September 26, 2023 | 08:21

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KT&G unveils heat-not-burn (HNB) e-cigarette

Posted : 2017-11-07 17:11

Updated : 2017-11-07 19:38

KT&G's tobacco heating device, lil, and its sticks, Fiit / Courtesy of KT&G

Homegrown cigarette maker looks to outpace Philip Morris, BAT

By Lee Hyo-sik

KT&G has unveiled its heat-not-burn (HNB) e-cigarette, lil, which it hopes will establish its leadership in the rapidly growing alternative cigarette market.

The local cigarette maker is expected to be engaged in heated competition with Philip Morris International (PMI) and British American Tobacco (BAT), which have already introduced their own HNB e-cigarettes; IQOS and glow, respectively, earlier this year.

KT&G, which controls more than 60 percent of Korea's cigarette market, said Tuesday it will begin selling "lil," an electronic device designed to heat "Fiit," tobacco sticks, at GS25 convenience stores in Seoul from Nov. 20. The device comes in two colors; creamy white and sapphire blue, and Fiit in two flavors.

It will cost 95,000 won ($84) and a pack of 20 Fiit sticks, 4,300 won. The company said those who sign up for an online membership at www.its-lil.com will receive a discount coupon and can purchase lil for 68,000 won.

In May, PMI Korea began selling the IQOS, an electronic device designed to heat HEETs, while BAT Korea introduced glo and its tobacco Neostiks in August. Both HEETs and Neostiks are also priced at 4,300 won for a pack of 20.

"We have been monitoring market trends for years and invested substantial resources to develop new products to meet changing consumer tastes," said Lim Wang-seop, chief of the innovative product department at KT&G.

"Compared to other HNB devices available on the market, lil is highly competitive in user convenience and portability. As Korea's No. 1 cigarette company, we will make the best use of our knowhow and expertise to capitalize on the emerging HNB market," he said.

Lim said lil weighs only 90 grams, lighter than a Samsung Galaxy S8 and other smartphones, adding users can smoke up to 20 sticks on a single charge.

"The device boasts an easy-to-grip design and is also easy to clean and maintain. As part of our efforts to give more back to our customers, we will offer a device case to the first 50,000 buyers and a recharging holder to the first 10,000 buyers for free," the chief said. "We will send our technicians to where customers are to provide more convenient and tailored after-sales services."

He said lil has less harmful chemicals, and leaves no ash and less of an odor on smokers, compared to conventional cigarettes. "We are currently carrying out tests to precisely find out how different our HNB product is from standard cigarettes,"

Lim then said for the time being, KT&G has no plan to raise the price of Fiit, despite the National Assembly's move to hike taxes on HNB cigarettes. "But we may consider raising the price later in accordance with market conditions."

Lawmakers are set to increase the excise tax levied on a pack of 20 HNB sticks to 529 won from the current 126 won.

They are moving to boost other taxes levied on HNB cigarettes, such as a consumption tax, a health promotion fee and a local education tax, to the degree that they equal 89 percent of those imposed on conventional cigarettes.

Both PMI Korea and BAT Korea have hinted at hiking the prices of their HNB cigarettes after the tax increase.

leehs@ktimes.com