▶KT&G (president Bok-in Baek) held an event to celebrate the company's 30th anniversary at its head office human resources development institute in Daejeon, on March 31.
KT&G’s Shintanjin plant in Daejeon is the world’s biggest super-slim cigarette production base (picture)

KT&G (president Bok-in Baek) held an event to celebrate the company's 30th anniversary at its head office human resources development institute in Daejeon, on March 31.

Mr. Baek, executives and staff members of KT&G attended the event which included ceremony commemoration, congratulatory message, prize awarding for meritorious deed and appointment ceremony for executives of ‘Sangsang Realization Committee’, a company culture innovation organization.

The government monopoly became a public corporation on April 1, 1987 and the firm, which changed its name to KT&G after privatization in 2002, set the date as its official foundation.

Since its privatization, the company adopted a specialist system with independent board committee in which professionals take a major role in leading the management. The company is also praised for its transparency and advanced governance structure.

KT&G faced a challenge in 1988 as the Korean market was opened to foreign brands but the company still accounts for more than 60 percent of cigarette sales here. The company more than doubled its sales and operating profits from 2002. Its market capitalization also soared around four times to more than 13 trillion won over the 15-year period.

The company first exported its products in 1988 and thereafter it actively tried to tap into global markets. Starting in 2015, exports surpassed domestic sales. Currently, a majority of its sales come from overseas ─ it sold 48.7 billion cigarettes in 50 countries last year.

It also diversified its business portfolio including red ginseng, pharmaceutical, bio, cosmetics and real estate with profitability and growth potential. Under its wing, KT&G has Korea Ginseng Corporation, which sells ginseng and ginseng supplements, cosmetics producer Cosmocos and Yungjin Pharmaceutical.

KT&G also officially declared the change its origin from ‘Gungnae-bu Naejang-won Samjeong-gwa’ of Korean Empire in 1899 into ‘Sunhwa-kuk’, a state-run tobacco manufacturer of late Chosun period. It was also revealed by academic study that Sunhwa-kuk was the first state-run tobacco company established by the Enlightenment Party in 1883, which also was interested in international trades.

"KT&G's history dates back to Sunhwa-kuk of the late Chosun period. Through transformation into a public corporation and privatization, we have grown into a global powerhouse," Baek said. "In time with the 30th anniversary, we will focus on exports, managerial innovation and corporate social responsibilities so as to spearhead future growth."

▶KT&G (president Bok-in Baek) held an event to celebrate the company's 30th anniversary at its head office human resources development institute in Daejeon, on March 31.
KT&G’s Seoul Building (picture)