KT&G Joins as a Payment Integration Cooperative to Foster Mutual Growth with Partners 2023.11.06
KT&G (CEO Baek Bok-in) has joined as a cooperative enterprise in the payment integration cooperative, taking a step towards mutual growth with partner companies.
The payment integration cooperative is a system aimed at reflecting any increase in raw material prices in the payment to reduce the burden on small and medium-sized partner companies. This system has been in effect since October 4th of this year to promote a culture of mutual growth and fair market economic development.
Before the system became legally established, KT&G had already stipulated in its regulations and purchase contracts that in the event of an increase in raw material prices compared to the contract period, it could proactively adjust the purchase contract amount to alleviate the burden on partner companies.
In addition to the payment integration cooperative, KT&G operates various support systems to strengthen continuous cooperation with partner companies. To support the enhancement of partner companies' technical capabilities and development, investments are provided. Furthermore, to ease financial difficulties, full cash payments are made monthly for supplies, and early payments are made before holidays.
KT&G also supports the dissemination of the draft reduction device, a fuel-saving device for leaf tobacco dryers, to ensure the stable operation of farms that cultivate an important raw material, leaf tobacco. Additionally, in pursuit of the welfare of agricultural workers, it has delivered a total of 3.66 billion KRW in health examination fees and scholarships for children since 2013.
Meanwhile, KT&G's subsidiary, KGC, has also participated in the payment integration cooperative, contributing to the relief of partner companies' expenses.
A KT&G representative stated, "The payment integration cooperative will enhance the competitiveness of partner companies, ultimately laying the foundation for a sustainable industrial ecosystem." They added, "We will continue to expand the scope of social responsibility across the entire value chain in the future."
(Photo description) KT&G Corporate Identity (CI)