Company targets sector that grows fast British American Tobacco Korea is striving to shore up its presence in the Korean market with premium cigarette products . The Korean unit of the global manufacturer has been diversifying its portfolio of pricey cigarettes with Dunhill and Kent brands in a bid to boost profits amid stagnant population growth and rising health concerns . Although surging prices of tobacco leaves and labor costs led BAT to hike prices of some products by 200 won ( 19 cents ) in April , Korea ’ s cigarettes largely remain below 3 , 000 won a pack , one of the lowest among OECD nations . “ BAT is thought to have suffered profitability deterioration , as ex - factory prices have frozen for nine years . The country ’ s cigarette prices are relatively low in light of its income level , ” Baek Woon - mok , an analyst at Daewoo Securities , said in a report . But the segment of multinational premium cigarettes ― including Dunhill , Kent and Philip Morris International Inc . ’ s Marlboro and Parliament ― has gradually expanded over the past several years , threatening the dominance of KT & G Corp . , according to Euromonitor International . “ Korean consumers became increasingly partial to multinational brands , due to the quality of the tobacco used , as well as their premium packaging , ” the London - based research firm said in a report . “ Furthermore , the resistance to imported products , which was previously commonplace in Korea , continued to diminish particularly amongst younger consumers . ” Since its inroads in 1990 , BAT has emerged as the No . 2 seller in the world ’ s eighth - largest tobacco market . It set up a factory in 2002 in Sacheon , South Gyeongsang Province , by injecting around $ 100 million . To jack up its 16 percent stake , the company unveiled its capsule filter technology and new packaging last year . Kent Convertible and Kent Boost give customers an extra burst of menthol when they pop a small ball in the filter . Kent Convertible , the first of its kind here , took up more than 1 percent within three months after its launch in July 2010 , industry figures showed . “ Kent is the second - largest premium brand globally ― outside of the U . S . and China ― sold in over 80 countries , ” Guy Meldrum , marketing executive director of BAT Korea , said early this year . “ Kent stands for innovation and technology . ” For its Dunhill lineup , BAT churned out a series of new products such as Switch , Nanocut and Fine Cut , and renewed packaging for traditional Dunhill with “ Reloc ” technology . The patented inner wrapping method entails a re - sealable double cover to ensure extra freshness for the tobacco . “ Dunhill has been an icon of premium brand in the market , ” said chief executive Stephan Liechti . “ Dunhill will continue to be a premium leader , keeping the same taste and quality with the premium seal Reloc . ” According to BAT , the premium tobacco sector logged double - digit growth last year and the trend is expected to continue in the coming years . Another target segment is ultraslim cigarettes . Dunhill Nanocut and Fine Cut are aimed at biting into the booming market enjoyed by KT & G ’ s Esse . “ Superslims are a global trend and have been the key design innovation of the last five years , with particular appeal to female smokers but also ‘ cross - over ’ appeal in a number of markets such as Korea where men have been receptive to the style , ” Euromonitor said . By Shin Hyon - hee ( heeshin @ heraldm . com )