KT&G's acquisition of Renzoluc(Trisakti) has been through the normal process of evaluating and consulting with a number of external accrediting and advisory agencies and we are in the process of acquiring management performance that meets the acquisition purpose.

The flow of funds between Korun and Batra, established at the tax havens mentioned in the article, is a totally unknown issue. As a result, We have no idea or knowledge of the flow of funds since the transfer of Renzoluc(Trisakti) by Batra..

In connection with the acquisition of the tobacco company in Indonesia, we have already been called in the investigation process several times and it has concluded that there is no problem.

Indonesia is the second largest cigarette market in the world. In contrast to other countries, Kretek tobacco, which is a major consumption cigarette in Indonesia, accounts for 94% of the local market. In order to penetrate the market, securing infrastructure technology was an important issue. As a result, PM, BAT, JT and other global tobacco companies are also competing in the market through local M & A.

KT&G has been looking into the Indonesian market in various ways since early 2000. Since 2007, we have been preparing for the expansion of local businesses through the establishment of a branch office and conducting market research. In 2011, we acquired Trisakti, the sixth largest producer of tobacco in Indonesia. This is not a short-term result but rather a strategy to take the Indonesian market seriously from a mid- to long-term perspective.

Since then, we have been developing localized brands, training local sales force and we are seeing the effects of the acquisition as sales and operating profit are rising and it is showing rapid growth from end-2016 to 2018.

We are very sorry and sad about the situation where the global business from the mid- to long-term perspective is distorted and misinterpreted.