381 KT&G wins the KIPO award as the “Intellectual Property Management Enterprise of the Y 2020.12.09
KT&G (CEO, Bok-in Baek) was awarded with the Commissioner Award from the Korean Intellectual Property Office at the “Intellectual Property Management Enterprise of the Year” ceremony organized by the Korean Intellectual Property Office (KIPO) and the Korea Intellectual Property Association (KINPA) on December 8th.
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.
KT&G has quickly responded to the rapidly changing market environment in “technology leadership” and the strengthening of “R&D capacities”, especially since CEO Bok-in Baek took office in October of 2015. Accordingly, R&D costs increased from KRW 12.6 billion in 2015 to KRW 23 billion in 2019. Also, the government strengthened support through policies, such as encouraging patent applications by expanding the employees’ invention compensation system or establishing a department for intellectual property.
As a result, the intensive investment in R&D led to an increase in patent applications. The number of patent applications increased significantly from 43 applications in 2016 to 95 applications in 2017 and 238 applications in 2018. The figure reached 431 applications last year, exhibiting a greater than 10-fold increase in the number of patent applications in three years.
KT&G's strategy of strengthening technology leadership created innovative products that are differentiated from existing products, such as “tobacco with reduced odor” and “hybrid-type e-cigarettes”. With these innovative products receiving favorable responses, KT&G achieved record quarterly sales and operating profit in Q3 of this year.
Chi-beom Oh, Head of KT&G's R&D Division, said, "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.” He added, "We will continue to lead the global tobacco market by focusing our competencies on developing our own technologies and making patent applications."
(Photo caption) KT&G was awarded the Commissioner’s Award of the Korean Intellectual Property Office, 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, taking a commemorative photo after winning the award.