• April 13, 2024

KT&G Joins Payment Integration Cooperative

 KT&G Joins Payment Integration Cooperative

Image: Dzmitry

Image: Dzmitry

KT&G has joined the payment integration cooperative, an initiative to help reduce the burden of raw material costs on small-sized and medium-sized partner companies.

Before the system became legally established, KT&G already stipulated in purchase contracts that in the event of an increase in raw material prices compared to the contract period, it could proactively adjust the purchase contract amount to alleviate the burden on partner companies.

To further reduce the burden, KT&G pays for its supplies monthly in cash and provides early payments before holidays. The company is also helping its contracted farmers save money through the dissemination of the “draft reduction device,” a fuel-saving tool for tobacco dryers.

To promote the welfare of agricultural workers, the company has contributed KRW3.66 billion ($2.79 million) in health examination fees and scholarships since 2013.

“The payment integration cooperative will enhance the competitiveness of partner companies, ultimately laying the foundation for a sustainable industrial ecosystem,” a KT&G representative said. “We will continue to expand the scope of social responsibility across the entire value chain in the future.”