Article 1 Company Name

The name of this company is "Chusik Hoesa KT&G" (the "Company"), which shall be expressed as "KT&G Corporation" in English.

Article 2 Objective

1. The objectives of the Company shall be as follows
1. manufacture and sale of tobacco;
2. manufacture and sale of red ginseng, red ginseng products and health functional foods;
3. manufacture and sale of foods and beverages;
4. development, manufacture and sale of pharmaceutical, bio-pharmaceutical and non-pharmaceutical products, medical supplies and medical equipment and any other relevant products;
5. manufacture and sale of tobacco business related materials;
6. trading business;
7. distribution business;
8. broadcasting business;
9. real estate, real estate leasing and housing businesses;
10. leaf tobacco cultivation education;
11. businesses regarding test, inspection, examination or standardization designated or entrusted by the Korean government;
12. financing business;
13. insurance business;
14. service businesses related to finance and insurance;
15. general construction business;
16. exploration, mining, development, investment and sale of crude oil, coal, natural gas and other natural renewable resources;
17. production, transportation and supply of energy, including, but not limited to, alternative energy, clean energy and new and renewable energy and other relevant technology business;
18. carbon credit related service and carbon credit trading;
19. manufacture, processing and sale of beer, whiskey, soju, alcohol and other alcoholic beverage;
20. supply of electricity, gas, steam and air-conditioning;
21. wholesale and commodity brokerage businesses;
22. storage, warehousing and other transportation service businesses;
23. research and development businesses, including, but not limited to, research and development of new materials;
24. franchise invitation and operation;
25. publication of books, newspapers, magazines and other printed materials;
26. operation of restaurants and bars;
27. social welfare service business, including, but not limited to, welfare facilities operation;
28. education service business;
29. general advertisement business, including, but not limited to, advertisement agency, sale of advertisement media and production of advertisement materials;
30. cultural and art businesses, and recreational products businesses;
31. entertainment and game businesses and other relevant contents and products business;
32. general tour business and lodging business, including, but not limited to, operation of hotels, inns and resort condos;
33. amusement park and theme park operation;
34. business facilities administration and gardening services;
35. operation of beauty salon and bathhouse, including, but not limited to, spa and other similar service business;
36. travel agency and other travel assistant service business;
37. sports team operation and other incidental business;
38. sports service business, including, but not limited to, operation of fitness center, swimming pool, ski resort and golf course;
39. parking lot operation;
40. manpower supply and recruiting service business;
41. development, production, sale and purchase of seeds of tobacco, ginseng and other plants;
42. manufacture and sale of fertilizer and agrochemicals;
43. manufacture and sale of soaps and detergents;
44. manufacture and sale of cosmetics;
45. manufacture and sale of perfume;
46. management and licensing of intellectual property rights, including, but not limited to, brands, trademark rights, manufacture technology related to any of the foregoing items; and
47. supply and development of software
48. electronic commerce transaction business
49. mail order distribution business and mail order brokerage business
50. research activity incidental to the businesses described above.
2. The Company may engage in investment, contribution, loan, support or any other ancillary businesses that are necessary to accomplish the objectives specified in Paragraph (1).

Article 3 Location of Head Office

The Company shall have its head office in Daejeon, Republic of Korea ("Korea") and the Company may establish branches, liaison offices or subsidiaries within or outside Korea by a resolution of the Board of Directors, when it deems necessary.

Article 4 Public Notices

Public notices by the Company shall be posted on the website of the Company (http://www.ktng.com). However, if such website cannot be used for the purpose of public notice due to any irregularity of computer system or other inevitable cause, it shall be issued in The Seoul Shinmun, a daily newspaper published in Seoul, and The Daejeon Ilbo, a daily newspaper published in Daejeon, Korea.