On July 28, KT&G (CEO Baek Bok-in) provided a welfare subsidy of about 480 million won to promote continuous partnership with leaf tobacco farmers in the Republic of Korea. The funds will be used for medical check-up fees and scholarships for leaf tobacco farmers and support for fuel saving devices of exhaust gas heat. 

In addition to the declining rural population and the aging of farmers, farm houses are experiencing difficulties in securing the workforce due to the COVID-19 pandemic. The leaf tobacco cultivation is a labor-intensive industry, because it is difficult to mechanize the leaf tobacco cultivation. Since the average age of leaf tobacco farmers is high, their health needs careful attention.

In particular, this year, the size of the subsidy was increased by subsidizing the purchase cost of 84 fuel-saving devices for exhaust gas heat, which can help save fuel costs and reduce carbon emissions at the same time.

KT&G has delivered welfare subsidies to leaf tobacco farmers every year since 2013, providing a total of 3.336 billion won until this year. The total number of farmers who received the medical check-up subsidy and scholarships for children reached 10,666. In addition, as part of the ESG management, KT&G is making various efforts for shared growth with leaf tobacco farmers, who are partners in supplying raw materials. KT&G is the only tobacco company in the Republic of Korea to take the initiative of protecting farmers by purchasing domestic leaf tobacco. Every year during the leaf tobacco transplantation and harvest, a volunteer group of the company employees is sent to farms to help out farmers. 

Kim Jeong-ho, head of the raw material divisions, said, "The company has continued various activities for the partnership with farmers. We will continue to grow together through activities, which can be of practical help to farmers in the future.”

(Photo description) Kim Jeong-ho, head of KT&G's raw materials division (left), and Kim Sam-soo, president of the Korea Tobacco Growers Organization, are taking a photo together at the ceremony of delivering the subsidy funding to leaf tobacco farmers in 2022 on July 28.