Tag: KT&G

  • KT&G Recognized for Auditing Practices

    KT&G Recognized for Auditing Practices

    Hyung-cheol Cha, head of the KT&G audit planning office (right), and Tae-ryong Moon, president of the Korea Audit Association, at the awards ceremony. (Photo: KT&G)

    KT&G was awarded the Best Organization Award in the Private Enterprise Sector for Internal Audit at the 2020 Audit Awards hosted by the Institute of Internal Auditors Korea.
     
    The awards ceremony was held to encourage organizations that have contributed to social development through excellent internal audit and compliance monitoring during 2020. KT&G was highly evaluated for its reinforcement of transparency in management through internal audit consistent with global standards.
     
    “KT&G proactively prevents corporate risks through an independent internal audit organization directly under the audit committee, and in the future, we will increase corporate value by operating a leading audit system in line with global standards,” said Hagyeong Do, director of the KT&G audit group, in a statement.

  • KT&G Recognized for Intellectual Property

    KT&G Recognized for Intellectual Property

    KT&G was selected as the “Intellectual Property Management Enterprise of the Year” at the 2020 KINPA annual conference hosted by the Korea Intellectual Property Association. The photo features Kim Jong-yeol, Head of the Future Technology Research Institute at the KT&G R&D headquarters. (Photo: KT&G)

    KT&G received the Commissioner Award from the Korean Intellectual Property Office (KIPO) at the Intellectual Property Management Enterprise of the Year ceremony organized by the KIPO and the Korea Intellectual Property Association (KINPA) on Dec. 8.

    The award ceremony was hosted to identify enterprises that contributed to the development of national industries by strengthening the capacity of intellectual properties at enterprises and reflecting them in their management activities. KT&G has reportedly received excellent reviews in the creation of intellectual property and rights, including patents, as well as intellectual property management.

    Between 2016 and 2019, KT&G increased its number of patent applications from 43 to 431.

    “Through this award, KT&G’s technology was recognized once again since receiving the prime minister’s citation on the Day of Invention in June,” said Chi-beom Oh, head of KT&G’s R&D division, in a statement. “We will continue to lead the global tobacco market by focusing our competencies on developing our own technologies and making patent applications.”

  • Strong Quarter Paves Way for KT&G Ambitions

    Strong Quarter Paves Way for KT&G Ambitions

    Photo: KT&G

    KT&G posted KRW1.46 trillion ($1.31 billion) in consolidated sales for the third quarter of this year, up 10.7 percent from last year, reports The Korea Times. During the same period, operating profit grew 13.6 percent to KRW434.6 billion.

    The South Korean cigarette manufacturer’s performance was boosted by overseas sales, which grew 28.2 percent year-on-year to KRW262.9 billion. KT&G said it sold 12.7 billion cigarettes abroad from July to September, up 30.9 percent from a year earlier. The increase was largely due to growth in the Middle East and the expansion of the sales networks of its U.S. and Russian subsidiaries.

    Baek Bok-in

    Following the latest results, KT&G appears to be well on its way of realizing CEO Baek Bok-in’s goal of becoming the No. 4 player in the global cigarette market by 2025. In 2018, KT&G was No. 5 in terms of sales volume, according Euromonitor International.

    The company exported products to approximately 50 countries in the third quarter of 2017, but this grew to 90 in the third quarter of this year. Revenue from exports grew by KRW28.2 billion, outpacing the KRW22.2 billion growth in domestic sales during the same period.

    The company said it will increase the number of export markets to 100 by the end of this year and double the number by 2025.

    KT&G attributes its success to increased investments for product improvements.

    Tobacco heating products, too, have contributed to the company’s performance. Earlier this year, KT&G signed an agreement with Philip Morris International so that the latter would distribute KT&G’s tobacco heating products in overseas markets. Following the agreement, KT&G’s Lil tobacco heating devices and their exclusive cigarette products began exports to Russia in August, Ukraine in September and Japan in October.

    In October, Morgan Stanley Capital International assigned KT&G a top grade in an environment, social and governance evaluation. KT&G ranked first among 11 tobacco companies for product safety and quality due to its responsible marketing and outstanding quality management. It also earned a high score for supply chain labor standards.

    Tobacco Reporter featured KT&G’s global ambitions in its July 2020 print edition.

  • KT&G Receives High Marks for Governance

    KT&G Receives High Marks for Governance

    Photo: KT&G

    KT&G has obtained a Grade A in the environment, social and governance (ESG) evaluation conducted by Morgan Stanley Capital International (MSCI).

    Every year, MSCI evaluates about 8,500 listed companies worldwide by dividing them into different types of businesses and rating their business status related to the environment, social responsibilities, and corporate governance in the range of AAA to CCC. This year, KT&G was evaluated along with 11 global tobacco companies.

    This year’s grade is one level up from last year’s BBB.

    Last year, KT&G obtained an A+ for the second consecutive year and won the “Grand Prize” in the domain of governance in the ESG evaluation performed by the Korea Corporate Governance Service in recognition of its establishment of an excellent sustainable management system.

    The company has also been publishing the KT&G Report since 2007 to deliver transparent and accurate ESG information to domestic and overseas stakeholders as well as share various social responsibility activities with them.

  • KT&G to Launch Lil Hybrid 2.0 in Japan

    KT&G to Launch Lil Hybrid 2.0 in Japan

    Photo: KT&G

    KT&G will launch its Lil Hybrid 2.0 system Miix in Japan on Oct. 26 through its partnership with Philip Morris International (PMI), reports The Korea Times.

    Unlike in Russia and Ukraine, where KT&G released Lil Solid, the Japan will get a Lil Hybrid 2.0 and a dedicated Miix stick. The first products to be sold will be available in matte black, cobalt blue, prism white and metallic bronze.

    Consumers can choose from three stick types: Miix Regular, Miix Ice and Miix Mix.

    “We will continue to provide various options to consumers in overseas markets through continuous cooperation with PMI,” said Lim Wang-seop, head of KT&G’s next-generation product business division.

  • KT&G Highlights its 2019 Social Contributions

    KT&G Highlights its 2019 Social Contributions

    Photo: KT&G

    KT&G has published a report detailing the company’s social contribution activities in 2019.

    Unlike most South Korean companies that disclose only integrated environmental, social and governance reports, KT&G has been publishing a separate social contribution report since 2018.

    KT&G practices social responsibility based on three core values—hope, coexistence and creativity. The report highlights the achievements of KT&G’s Welfare Foundation, Scholarship Foundation and Youth Startup, among other initiatives.

    In 2019, KT&G the Minister of Employment and Labor recognized KT&G for its contributions toward fostering social enterprises. The company was also certified as an “excellent organization sponsoring culture and arts” by the Ministry of Culture, Sports and Tourism.

    In the report, KT&G also presents various activities to overcome the Covid-19 crisis. For example, in February, KT&G launched its Covid-19 Response Contingency Plan, which included monetary donations, customized support for vulnerable people and psychological support to those suffering from the pandemic.

    “KT&G has taken the lead in creating social values as a leading company in sustainability management, and has faithfully reflected these details in the report,” said Kim Kyung-dong, KT&G director of social contribution, in a statement. “We will continue to fulfill our social responsibilities as a corporate citizen and do our best to coexist with the local community.”

  • KT&G Supports Downpour Victims

    KT&G Supports Downpour Victims

    KT&G volunteers help restore tobacco farms in affected areas. (Photo: KT&G)

    KT&G has donated KRW500 million ($420,000) to expedite the restoration process of areas affected by recent torrential rains. More than a week of downpours in South Korea has left at least 30 dead and 12 missing in landslides, floods and other incidents.

    The donation was provided by Sangsang Fund, a voluntary charity system of KT&G employees. Sangsang Fund is a unique charity system where the voluntary contribution of employees is matched by KT&G every month.

    “In the midst of the Covid-19 recession, the flood victims are in desperate need of help,” said KT&G President Baek Bok. “I hope that the hard work and care from the employees of KT&G would swiftly restore the damaged areas and help people return to their normal life.”

    On August 6, KT&G volunteers started restoring tobacco farms in Bongyang-eup in Jecheon-si, Chungbuk. Twenty volunteers provided raw materials, cleaned flooded houses and assessed the damaged goods.

    “We wanted to give a hand to the farmers who are suffering from the torrential rains,” said a KT&G official. “As a corporate citizen, KT&G would like to continue its philanthropy and to support the community.”

    Previously, KT&G donated KRW500 million to those impacted economically by Covid-19

  • KT&G Start Exports to Russia Under PMI Deal

    KT&G Start Exports to Russia Under PMI Deal

    Photo: KT&G

    KT&G started exporting its Lil tobacco heating devices to Russia last month, according to The Korea Times. Earlier this year, KT&G and Philip Morris International (PMI) signed an agreement under which PMI would commercialize certain KT&G products outside of South Korea.

    During the announcement of its second-quarter results, KT&G confirmed that KRW12.5 billion ($10.54 million) worth of e-cigarette devices were exported to Russia in July.

    The partnership is calling for KT&G to export its tobacco heating devices and tobacco sticks worldwide through PMI’s global sales network.

    The exports to Russia come as heat-not-burn (HNB) appears to be losing steam in South Korea, with category penetration decreasing for the second consecutive quarter. The rate stood at 13 percent at the end of last year but declined to 12.6 percent in the first quarter and 12.4 percent in the second quarter.

    The company, however, said this does not mean a deadlock in HNB products’ growth, citing the expansion in overseas markets.

    “From a future business standpoint, the overall heat-not-burn tobacco market is expected to grow,” a company spokesperson was quoted as saying. “When the new products are introduced, the market is bound to grow. While there would be some minor impact from governments’ policies and market events, there is no doubt about the growth trajectory.”

    KT&G said conventional tobacco sales this year will likely exceed its annual goal set earlier as demand remains strong. In exports, the firm has already secured shipping volume destined for Middle Eastern markets in the second half of the year, while other overseas markets are showing signs of recovery from the impact of Covid-19.

    KT&G reported KRW1.32 trillion in consolidated sales during the latest quarter, up 4.8 percent from a year earlier. But the operating profit contracted by 1.1 percent year-on-year to KRW394.7 billion, due to the decline in duty free sales.

    Overseas tobacco sales increased by 14.1 percent to KRW286.4 billion, as its main export markets in the Middle East show solid recovery. The company expected growth will continue as its sales are increasing in Latin South America and Africa.

    KT&G’s international ambitions were examined in-depth in Tobacco Reporter’s June 2020 issue.

  • KT&G Aims for No. 4 Position

    KT&G Aims for No. 4 Position

    Photo: KT&G

    KT&G has stated that by 2025, it aims to become the fourth largest tobacco company in the world.

    “KT&G aims to increase the number of exporting countries from 80 to over 200 by 2025,” the company said in a statement. “Through this, we set the new goal of becoming the No. 4 tobacco company in the global market by then.”

    KT&G was the No. 5 tobacco maker in the world by sales volume and market share in 2016, according to Euromonitor International. To reach its No. 4 goal, the company has been exploring new markets and plans to increase investments in its global subsidiaries’ distribution network and marketing infrastructure.

    KT&G’s global ambitions were also highlighted in Tobacco Reporter‘s July 2020 issue.

  • KT&G Africa Launches Ice Kula Low-Odor Brand

    KT&G Africa Launches Ice Kula Low-Odor Brand

    Photo: KT&G

    KT&G will launch Africa Ice Kula on July 22.

    According to KT&G, the new product will increase “coolness” and reduce bad breath.

    The Africa Ice Kula is the first of the Africa brands to apply KT&G’s “smell care” technology—an innovation that reduces the smell of cigarettes in the mouth after smoking. It also produces a stronger coolness than the products of the previously released Discover Africa brand.

    The Africa brand, which was launched in 2013, became popular among young adults seeking differentiated taste. In particular, the Africa Ice Kula is the first deodorant product of the Africa brand and will provide a satisfactory option for consumers who prefer clean smoking.

    KT&G Brand Manager Moon Sung-hwan said, “The Africa Ice Kula is a product that further enhances the coolness and neatness in the summer season. It will satisfy everyone.”