KT&G has been recognized as The Best in Corporate Governance at the 2023 KCGS Excellent Companies Awards Ceremony hosted by the Korea Institute of Corporate Governance and Sustainability (KCGS).
As a leading domestic ESG evaluation agency, the KCGS annually selects and announces outstanding companies that have strived to improve their environmental, social responsibility and corporate governance. KT&G was awarded the highest prize among generally listed companies, The Best Award, in the corporate governance category, acknowledging its high-level sustainable management system.
KT&G was praised for leading board-centric management based on the sound operations of its board. The company has enhanced its checks and oversight functions by appointing only external directors to its key committees and has maintained a 75 percent external director ratio over the past three years, thereby securing board independence. Additionally, KT&G has elevated its board’s continuous monitoring function by operating its internal audit organization directly under the board’s audit committee.
KT&G has also been awarded an A+ in this year’s ESG integrated rating announced by the KCGS, maintaining an A grade (excellent) or higher for 13 consecutive years. KT&G has proactively adopted the Board Skills Matrix (BSM) to strengthen its “responsible, professional management system” centered on the board. The company has continued to enhance its governance structure by establishing board diversity and independence policies and formulating a group ethical charter.
“Since its privatization, KT&G has established a transparent and independent advanced governance structure centered on external directors,” the company wrote in a statement. “We plan to strengthen further our board’s independence, expertise and diversity to establish a global top-tier level of governance.”
The recent recognition confirms KT&G’s commitment to ESG. Since February 2021, the company has consecutively received the highest grade in its industry in the MSCI ESG evaluation. In addition, KT&G was awarded the prime minister’s commendation in the comprehensive ESG category at the 2022 Sustainable Management Merit Government Award.