South Korean tobacco company KT&G Corp will suspend its tobacco business in the United States for an unspecified period, reports The Korea Herald.

"We need to conduct a review of our business in the US amid intensifying regulations over tobacco and growing competition," the company said, referring to a “hostile business environment”, such as the FDA’s recent move to introduce a bill to curb nicotine content and reduce tobacco addiction.
The decision is estimated to cost the company about KRW 205.8 billion (USD 174 million) in lost sales, amounting to around 3.9 per cent of the company's overall sales revenue for last year, the report said.
The company also said mandatory tobacco escrow accounts for smoking-related legal settlements have added additional burdens to an already difficult business environment. "We will reconsider our business strategy in the US after reviewing the business environment and regulations," a company official was quoted as saying.