Responsible Procurement Policy
KT&G implements win-win management that aims for the completion of a better life with society and considers a sustainable future. We will practice our commitment to fulfilling social responsibility in creating a sustainable industrial ecosystem and win-win management with partners.
Partner Code of Conduct
KT&G has established and operates a Partner Code of Conduct to spread corporate culture that fulfills social and environmental responsibilities and to prevent and reduce supply chain risks.
Partner Ethical Practice Special Terms
To enhance the level of ethical management in the supply chain, we have introduced Ethical Practice Special Terms and are spreading ethical management culture through mutual signatures when concluding contracts.
Shared Growth Partnership
Shared Growth Fund
- To contribute to regional economic revitalization and job creation, KT&G has deposited 100 billion KRW to IBK Bank, using this as a resource to establish and support a fund worth 200 billion KRW.
Tobacco Production Stabilization Foundation Fund
- We are participating in the Tobacco Production Stabilization Foundation fund to ensure economic and social stability and increase productivity for domestic tobacco farmers, with KT&G having contributed a cumulative total of 446.6 billion KRW.
Full Purchase of Domestic Tobacco Leaves
- Although the obligation to purchase domestic tobacco leaves ended after the tobacco manufacturing monopoly was abolished in 2001, we purchase the entire domestic leaf tobacco production annually for use in our products to ensure stable economic activities and livelihoods for farmers.
Green Impact Alliance
- With the goal of building a sustainable value chain, we hold annual partner workshops to establish greenhouse gas reduction roadmaps with partners and provide ISO consulting support.
STP
(Sustainable Tobacco Program)
- To strengthen the sustainable production foundation for domestic tobacco farms, we conduct sequential monitoring, education, and communication with farmers by major seasons.
Cash Payment
- We pay the full amount for materials in cash every month and actively encourage primary partners to also pay cash to secondary partners.
ECO-Mileage
- We operate a mileage program for partners with transportation contracts, aiming to reduce carbon emissions and fuel usage through eco-friendly economical driving.
ECO-Change
- To practice eco-friendly and mutual growth management, we support the replacement of aging freight vehicles (over 10 years old) for partners who have been in business with us for more than 7 years.
ECO-Hydrogen Energy
- To reduce greenhouse gas emissions, we have been operating two 11-ton hydrogen electric freight vehicles in cooperation with CJ Logistics since October 2024.