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Tag: KT&G

  • KT&G Expands in Indonesia

    KT&G Expands in Indonesia

    Photo: KT&G

    KT&G CEO Kyung-man Bang participated in groundbreaking ceremonies for the South Korean tobacco company’s second and third factories in Surabaya, Indonesia, on April 26.

    According to a company press release, Bang also visited KT&G’s Asia-Pacific headquarters in Jakarta during his trip, which was his first visit to an overseas business operation since assuming the top position at KT&G.

    Spanning approximately 190,000 square meters, KT&G’s second and third factories in Indonesia are set to commence operations in 2026. The combined production capacity of the factories is projected to reach 21 billion cigarette sticks per year. KT&G plans to make Indonesia its largest global production base, with an annual production capacity (including existing factory capacity) of 35 billion cigarettes, and focus on global market expansion.

    “We have been committed to delivering and accelerating our mid-[term] to long-term vision of becoming a global top-tier company by executing vigorous investment strategies and leading bold innovations,” said Bang during the ceremony.

    “Indonesia serves as our primary global export hub, driving the expansion of our export business in Asia-Pacific and the Middle East markets. We will continue to develop the global production hub in Indonesia as a core growth engine for the company,” Bang added.

    Last October, KT&G broke ground for a factory in Almaty Province, Kazakhstan, designed for exports across the Eurasian region. The following month, the company announced an expansion of its next-generation product capacity at its Daejeon factory.

    To accelerate its global expansion, KT&G recently separated its Asia-Pacific headquarters and Eurasia headquarters from the company, establishing them into separate business entities.

  • KT&G Sued

    KT&G Sued

    Photo: Ian O’Hanlon

    A former KT&G Corp researcher has filed a lawsuit against his former employer claiming that he was insufficiently compensated for inventing “the world’s first e-cigarette” while working at the firm, reports the Yonhap News Agency.

    Kwak Dae-geun demands KRW2.8 trillion ($2 billion), reportedly the highest amount ever claimed by an individual in a South Korean legal action

    According to the suit, Kwak joined the Korea Ginseng and Tobacco Research Institute in 1991 and began developing a tobacco-heating product in 2005.

     In July that year, he registered his first patent for a prototype. In December 2006, he registered another patent for an upgraded version with a controllable heater.

    Subsequently, he developed a full e-cigarette set, and registered a patent for part of the device in 2007 before leaving the company in 2010 as part of corporate restructuring.

    After Kwak’s departure, KT&G allegedly registered patents for some of his technologies without recognizing his contributions.

    In addition to his claim about compensation, Kwak contends that a prominent rival global tobacco firm was able to commercialize its internal heating-based e-cigarette model in South Korea in 2017 due to the absence of overseas patents.

    Kwak’s requested damages reflects his portion of the revenue KT&G is expected to generate through Kwak’s patented technology during the 20-year patent term, as well as what KT&G would have earned if it had registered patents overseas.

    KT&G counters that it has properly rewarded Kwan in the form of offering a technology advisory deal, and that Kwak had agreed not to raise any legal issues.

    The firm also said the technologies invented by Kwak are not currently used in the products it is selling.

    The e-cigarettes being sold by the global firm in question, meanwhile, did not involve technologies patented by Kwak, according to KT&G, which also noted that the rival firm had already commercialized early-model heated tobacco-type products in 1998.

  • New KT&G CEO Engages Employees

    New KT&G CEO Engages Employees

    On the April 17, KT&G President Bang Kyung-Man (third from the left) held a casual meeting with employees to kickstart his focus on communication management. (Photo: KT&G)

    Three weeks after his inauguration, KT&G’s newly appointed president, Bang Kyung-man, engaged in a casual meetings with employees to demonstrate his commitment to robust communication.

    The event was held on the 20th floor of KT&G’s Seoul headquarters, and attended by about 20 employees from various jobs and ranks.

    Bang shared his personal growth story, from joining KT&G as a new recruit in 1998 to taking on the role of CEO 27 years later. In addition to sharing his insights as a company senior, he sought employees’ opinions on the company’s mid- to long-term vision and growth strategies.

    Following his appointment as CEO on March 28, Bang immediately visited KT&G’s Chungnam Headquarters and Seo Daejeon Branch, emphasizing communication with the sales team on the ground.

    “This event was organized to reflect the management’s desire to communicate freely with team members, breaking away from traditional formats and fostering consensus on the company’s vision,” KT&G wrote on its website. “We will continue to promote a culture of bidirectional communication among staff to develop a more horizontal and flexible organizational culture.”

  • KT&G Volunteers Assist With Transplanting

    KT&G Volunteers Assist With Transplanting

    Photo: KT&G

    KT&G volunteers transplanted tobacco seedlings to help tobacco farmers who are struggling with labor shortages.

    The volunteer team consisted of 36 members from the SCM Headquarters Raw Material Business Division and the Gimcheon Factory. They visited a tobacco farm in Jangan-myeon, Boeun-gun, Chungcheongbuk-do, and transplanted about 32,000 tobacco seedlings across approximately 15,000 square meters of farmland.

    KT&G workers have volunteered on tobacco farms for 18 years not only helping with seedling transplantation but also supporting tobacco leaf harvesting activities during the summer, which require intensive labor in hot weather.

    “KT&G has been engaging in activities that provide practical help to farmers for a long time,” said KT&G’s SCM Division Head Jeong-ho Kim in a statement. “We will continue to make efforts to grow together with the farming community and the local society.”

    Additionally, KT&G has been supporting welfare improvement projects for domestic tobacco farmers. In June last year, KT&G paid KRW520 million ($372,949) for tobacco farmers’ health checkups, children’s education fees and support for devices that reduce fuel for curing barns. Since 2013, the cumulative support amount has reached approximately KRW3.85 billion, benefiting a total of 13,050 farmers.

  • Investor Welcomes Independent Directors

    Investor Welcomes Independent Directors

    Photo: KT&G

    Flashlight Capital Partners, a significant shareholder of KT&G Corp. welcomed the cigarette manufacturers’ appointment of an independent director, which the investor said would enhance governance and shareholder value.

    At its recent annual meeting, KT&G appointed Kyung-Man Bang as its new CEO. Shareholders also approved the appointment of Dong-hwan Shon and Sang-wook Kwak as outside directors

    “We view this appointment as a victory for all shareholders, irrespective of size or nationality,” said Sanghyun Lee, managing partner of Flashlight Capital, in a statement. “With the addition of a truly independent director committed to advancing shareholder interests, KT&G has taken a crucial step towards governance normalization.”

    In a letter addressed to KT&G’s new board of directors, Lee outlined asked the company to link the compensation of the board and CEO to performance; investigate the underperformance of KT&G’s Lil heat-not-burn product in Japan; and exit the asset management business, among other actions.

    “With the appointment of the new board of directors, especially Mr. Shon, we are optimistic that KT&G’s future will be characterized by increased transparency and improved governance standards,” said Lee.

  • KT&G Appoints Bang as President and CEO

    KT&G Appoints Bang as President and CEO

    Kyung-man Bang (Photo: KT&G)

    KT&G Corp. appointed Kyung-man Bang as its president, CEO and representative director.

    Despite opposition from some shareholders, Bang was elected president with overwhelming support during KT&G’s annual meeting on March 28, according to the company. The election of CEO and outside director was conducted jointly through combined cumulative voting as per shareholder request, with the aim of protecting minority shareholder rights.

    “I am deeply grateful to the shareholders for entrusting me with the honorable opportunity to serve the company as CEO, and to the employees for their tireless work and dedication across both domestic and international business arenas,” said Bang.

    “We are committed to achieving our vision of becoming a global top-tier company by taking a leap forward and leveraging our three core business areas—overseas combustibles, next-generation products and health-functional food—as the cornerstone for growth. We will also put our best effort to enhance corporate value and to establish a strong foundation of trust with stakeholders by sharing our profits with various stakeholders.”

    Furthermore, Bang introduced his “T-O-P strategy,” a new business approach designed to help KT&G achieve its vision of becoming a top player. According to Bang, “T-O-P” stands for “trust,” “origin” and “professionalism.”

    It aims to demonstrate KT&G’s commitment to enhancing stakeholders’ trust with proactive engagement, establishing an undisputed “origin” with a first-mover approach and securing global expertise and professionalism through performance and growth.

    Bang encouraged employees to build upon KT&G’s legacy of persevering through numerous crises and to aspire to new heights of success by taking on new and daring challenges.

    Since joining Korea Tobacco and Ginseng (KT&G’s predecessor) in 1998, Kyung-man Bang has held various management positions at the company, including roles such as managing director of brand management, executive managing director of global headquarters, executive managing director of strategy and planning headquarters, and chief business officer.

    As managing director of brand management, Bang helped KT&G solidify its leadership position in the domestic market by launching ESSE Change, which has become a leading brand. Moreover, during his tenure as executive managing director of global headquarters, Bang expanded KT&G’s overseas market presence to more than 100 countries and delivered an unprecedented KRW1 trillion in overseas sales by developing tailored brand portfolios for each market and accelerating market expansion efforts.

    As chief operating officer, Bang has played a pivotal role in executing the company’s mid-term to long-term growth strategy that focuses on three core business areas. He has made significant contributions to expanding the direct business model for the company’s overseas combustibles business, driving rapid growth in the next-generation product business, and establishing localized value chains for overseas health-functional food business.

    During the annual meeting, shareholders also approved the appointment of Dong-hwan Shon and Sang-wook Kwak as outside directors, with Kwak also serving as an audit committee member. “We are fully dedicated to driving the company’s growth and enhancing shareholder value, with the newly formed board of directors leading the change at the forefront,” the company wrote in a press release.

  • Pension Fund Supports KT&G CEO Nominee

    Pension Fund Supports KT&G CEO Nominee

    South Korea’s National Pension Fund (NPF) will vote in favor of KT&G’s CEO nominee Bang Kyung-man at the cigarette manufacturer’s upcoming shareholder meeting, reports the Yonhap News Agency.

    The NPF will also vote for former Judge Sohn Dong-hwan as a new KT&G board member.

    The NPF holds a 6.2 percent stake in KT&G. 

    The Industrial Bank of Korea, which is state-run and holds an 8 percent stake in KT&G, has opposed Bang’s nomination, citing falling profitability and dubious business practices during his board tenure. Sohn is a director candidate proposed by the Industrial Bank of Korea.

  • Top KT&G Shareholder Opposes CEO Nominee

    Top KT&G Shareholder Opposes CEO Nominee

    Photo: zzzdim

    KT&G’s biggest shareholder is opposing the nomination of Bang Kyung-man as the cigarette manufacturer’s new CEO, reports Yonhap News. The Industrial Bank of Korea (IBK), which owns about 8 percent of KT&G, cited falling profitability and dubious business practices during the nominee’s tenure as a board member.

    On Feb. 22, KT&G’s CEO candidate recommendation committee selected Kyung-man Bang, senior executive vice president of KT&G, as the final CEO candidate, citing his performance on criteria such as management expertise, global acumen, strategic thinking skills, stakeholder communications and universal morality and ethical awareness.

    KT&G shareholders are due to vote on the nomination during the company’s annual general meeting on March 28. The appointment would mark KT&G’s first leadership change in nine years.

    IBK opposes Bang’s nomination because “KT&G’s operating profit has fallen more than 20 percent” since he was appointed as vice president of the cigarette maker, an IBK official was quoted as saying.

    “Given a decision to secure friendly shares using its own stocks, the independence and fairness of the current board of directors are bound to be seriously questioned,” the official said.

    In a regulatory filing dated March 12, IBK also made a shareholder proposal to improve KT&G’s governance by strengthening the expertise and independence of the board of directors.

    KT&G has faced pressure recently to be more transparent in its CEO selection process. In a video published ahead of the South Korean tobacco firm’s annual general meeting, KT&G shareholder Flashlight Capital Partners highlighted what it considered the problems during previous CEO nominations.

    In January, the incumbent CEO, Baek Bok-in, said he would not seek reappointment.

  • KT&G Prepares for Shareholder Meeting

    KT&G Prepares for Shareholder Meeting

    Photo: KT&G

    KT&G’s board of directors has tabled several items to be discussed at the company’s annual general meeting of shareholders on March 28. These items include the appointment of Kyung-man Bang as president and Min-kyu Lim as outside director as well as the Industrial Bank of Korea’s shareholder proposal of appointing Dong-hwan Shon as outside director and Agnes’ shareholder proposal of appointing Sang-hyun Lee as outside director.

    The board has selected Kyung-man Bang, the current chief operating officer of KT&G, as the final CEO candidate, citing his extensive knowledge of the company’s overall business operations and his capability to steer the company through market challenges and toward the aspiration of becoming a “global top-tier” company.

    Min-kyu Lim, nominated for the role of outside director, is renowned for his leadership at major listed companies in Korea, including as CEO of OCI Materials and SK Materials. His extensive expertise in organizational and risk management and sustainable business practices is also well regarded.

    Sang-wook Kwak, an outside director candidate who will also serve as an audit committee member upon appointment, is counselor at Hwa Hyun, a Korean law firm. He previously served as chief of the Criminal Department at the Supreme Prosecutors’ Office of the Republic of Korea before assuming the role of inspection commissioner at the Board of Audit and Inspection.

    “We have always valued the legitimate exercise of shareholder rights and have decided to table all shareholder proposals for the upcoming AGM without any objection, reflecting our respect for the integrity and purpose of shareholder proposals,” KT&G wrote in a statement. “We maintain close communication with all of our stakeholders, including shareholders, about KT&G Group’s future vision and growth strategies. Our commitment to maximizing the interests of all shareholders and enhancing the future value of the company remains steadfast.”

  • KT&G Names Final CEO Candidate

    KT&G Names Final CEO Candidate

    Photo: RerF

    KT&G’s CEO candidate recommendation committee has selected Kyung-man Bang, senior executive vice president of KT&G, as the final CEO candidate.

    Pending approval at the annual general meeting of shareholders in late March, Bang is set to officially assume the role and lead the company for the next three years.

    Bang was chosen following an assessment of each shortlisted candidate based on five criteria: management expertise, global acumen, strategic thinking skills, stakeholder communications and universal morality and ethical awareness.

    With a bachelor’s degree in economics from Hankuk University of Foreign Studies and an MBA from the University of New Hampshire, Bang has held various management positions since joining Korea Tobacco and Ginseng in 1998. His extensive experience includes roles such as managing director of brand management, executive managing director of global headquarters, executive managing director of strategy and planning headquarters and chief business officer.

    Bang, currently the chief operating officer, played a pivotal role in formulating the company’s mid-to-long term growth strategies. Among other achievements, he successfully launched the ESSE Change brand and expanded KT&G’s overseas market presence to over 100 countries.

    “Members [of the CEO candidate recommendation committee] have been fully committed to ensuring transparency throughout the candidate assessment process and fair competition without external interference,” said committee Chairman Myung-chul Kim in a statement.

    “I will dedicate myself wholeheartedly to ensuring that KT&G leaps forward as a ‘global top-tier’ company by leading innovation and seizing future growth opportunities,” said Bang.