Recognizing the importance of promoting ESG management and complying with international ethical standards as our business has been expanding global presence, in June 2022 we established the “KT&G Group Business Ethics Charter” which reflects the ethical value of global standards. The Charter stipulates the common principles and standards that KT&G employees must observe, particularly with regard to work and research ethics, information protection, fair trade, responsible sales and marketing activities, environmental protection and social contribution, and human rights protection. As the Charter is applied to all employees of KT&G Group, including KT&G and its subsidiaries at home and abroad, its contents are written in such a way that anyone can understand them, unlike the existing legal text. The Charter also provides specific examples intended to help employees to make prompt decisions in the right direction when circumstances require it.

KT&G set in place an “unethical behavior reporting system” that enables its stakeholders, including employees and partners, to report unethical behaviors under their real names or anonymously. They can report such unethical behaviors as bribery, requests for special consideration for a job position, misbehavior, sexual harassment and bullying in the workplace, abuses of power, and collusion without restrictions on time or location. As our global business continues to expand, we plan to strengthen ethical management across the Group by operating various unethical behavior reporting channels in various languages. KT&G has established the “Guideline on the Protection of Persons Reporting Unethical Conduct” in order to protect the identity of reporters according to the provisions related to the prohibition of retaliation and the prohibition of unfavorable disposition, and has increased the transparency and reliability of the reporting system by publishing the “Manual on the Reception and Handling of Unethical Behavior Report”.