Baek Bok-In, the new CEO of KT&G, expresses that he would restore public trust and revamp KT&G’s business”
- Through his inauguration speech, he announced “3C management” plans, including transparency, ethics, communication, empathy, autonomy, and performance.
On Oct. 7, KT&G held a special shareholders meeting at KT&G Human Resources Center in Taejon, and officially announced Baek Bok-In as its new CEO.
CEO Baek declared at his inauguration that he would employ a new management style in order to make a new KT&G and enable a sustainable growth. He has suggested three core management agendas, the 3C’s, that would foster change and innovation, such as “Clean (transparency and ethics)”, “Cooperative (communication and empathy), and “Creative (autonomy and performance)”
First, he declared his plans for a transparent and ethical management that would restore internal/external trust and build a solid brand image as a ‘good company’. He made it clear that transparent and ethical management is a prerequisite for the company’s survival and sustained growth, and that he would strengthen the independence and expertise of the organization in charge of ethical management. Besides, he would cool-headedly self-examine the past and build a system to eradicate the remaining injustice and improperness.
Secondly, he is determined to adopt “communication and empathy management” that would realize authentic cooperation based on horizontal CEO leadership. To rebuild KT&G’s corporate culture, he would form a “Sangsang Realization Committee” comprised of external experts and former/current employees. It would take a lead to promote open communication encompassing all levels within or outside the company. Besides, he would also be more faithfully fulfill corporate social responsibility by expanding corporate social contributions and communicating with the local community.
Third, he would employ “autonomy and performance management” in order to make KT&G a globally competitive firm. Baek said he would reform HR/education system and reinforce investment to enhance the employees’ capabilities, and would scout external talent if needed. He would also develop independent management systems for each business units, and strengthen a responsible management systems that would relate the system with evaluation and compensation.
In addition, Baek announced his plan to build a business portfolio that enables both growth and profitability. Korean domestic tobacco business would act as the group’s cash cow. For overseas tobacco business, he would focus on large emerging markets to continue growth. Ginseng business would be expanded by creating new demand in Korea and aggressively capturing new overseas markets. Other business areas such as real estate, cosmetics, and pharmaceuticals, would also seek for growth.
Baek said, “the company is now facing the greatest change and crisis in history. It is undergoing enormous change and has to be reborn into a new KT&G. KT&G will become a beloved national company and foster Korea’s economic growth by progressively expanding in the global market and solidly maintain the domestic market, based on the business philosophy of ‘good management towards the future’.
Baek is the first man from Korea Tobacco and Ginseng Corp., the former body of KT&G, to become the CEO of KT&G. He joined the company in 1993, and for 23 years, has built wide experience in key positions in strategy, marketing, overseas business, production and R&D. As the head of marketing in 2011, when KT&G’s domestic business was sluggish, he brought up the market share from 58% to 62%, and introduced ‘product quality real-name system’ for the first time in the global tobacco market. His major strengths are the strategic thinking and implementation capabilities, which are crucial realizing KT&G’s vision and innovation.
On the other hand, on Oct. 8, there has been a reorganization in KT&G. Marketing/Sales and Production/R&D were divided into sectors. From now on each business units would autonomously be managed.
