KT&G Corp. posted growth of 4.8 percent in its market share during the first quarter, a record-high over the past decade.

The local company captured 62.1 percent of the nation’s tobacco market in the first quarter, compared to 57.3 percent in the fourth quarter of last year.

The figure of 4.8 percent is the highest in 14 years since KT&G posted 6.4 percent growth during the first quarter of 1998, when Korea was hit by the Asian financial crisis.

The company sold about 633.2 million packs in the first quarter, up 8.8 percent from the same period last year.

By product, sales of the Bohem Cigar surged 93.6 percent on a year-on-year basis, followed by Davidoff with 19.4 percent, One with 13.1 percent, Raison with 12.9 percent and Esse with 8.5 percent.

KT&G’s thriving sales performance was attributed to a series of price hikes by foreign competitors, according to sources in the cigarette manufacturing industry.

Foreign companies, such as Philip Morris International Korea and British American Tobacco Korea, suffered a rapid drop in sales after their price hikes.

Philip Morris International Korea raised prices about 6.8 percent in February, citing high raw material prices and labor costs.

The hike, the first in seven years, sent the price of Marlboro, Parliament and Lark to 2,700 won ($2.40) a pack from 2,500 won. Virginia Slims, a super-slim cigarette brand, was sold at 2,900 won per pack, up 100 won from before.

PMI’s decision came seven months after its competitors ―British American Tobacco Korea and Japan Tobacco International Korea ― raised the prices of their flagship products by 200 won.

But the foreign companies recently slashed prices following a heavy drop in sales.

Meanwhile, there have been rumors that KT&G is considering joining the price hike.

A packet of cigarettes costs between 2,500 won and 3,000 won in Korea, one of the lowest among OECD nations. The country’s smoking rate among men is around 39 percent.

By Kim Yon-se (kys@heraldcorp.com)