Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.
KT&G has new CEO
New KT&G CEO Baek Bok-in speaks during his inauguration ceremony at the company headquarters in Daejeon, Wednesday. Baek pledged to eradicate dubious business practices through transparent and ethical management during his three-year tenure. / Courtesy of KT&G
By Lee Hyo-sik
By Lee Hyo-sik
KT&G shareholders approved the appointment of Baek Bok-in as the new company CEO, Wednesday, despite his alleged involvement in his predecessor Min Young-jin’s creation of a slush fund.
Korea’s largest cigarette producer held an extraordinary shareholders’ meeting at its headquarters in Daejeon, with the majority endorsing the recommendation of the board of directors that Baek, former vice president of production, be appointed as the new CEO.
In an inaugural speech, Baek said he will do everything he can to make the company management more transparent and abolish dubious business practices.
“I will take all possible measures to make the company more transparent, open and self-regulated,” he said. “Transparent and ethical management is a must for KT&G to achieve sustainable growth. I will introduce necessary steps to eradicate deep-rooted, old practices and expand the division that enforces ethical management.”
The CEO also pledged to expand the company’s corporate social responsibility activities and appoint people from outside the company to key positions. “We will continue to maintain our lead in the domestic cigarette market. At the same time, we will make inroads into more developing markets.”
He said KT&G will invest more to nurture cosmetics, pharmaceuticals and other non-cigarette businesses, as well as to implement real estate development projects.
“During my three-year term, I will transform KT&G into a globally competitive enterprise. We should be one of the most-trusted companies in Korea,” he said.
The 51-year-old, who began his career at the cigarette company in 1993, has served in various posts such as marketing, business strategy, production, and research and development.
Despite the ongoing prosecution investigation into the company, his appointment was largely expected as the Institutional Shareholder Service, which voices opinions on listed firms’ corporate governance issues for investors, recommended last week that investors vote in favor of Baek’s appointment.
About 53 percent of KT&G shares are held by non-Korean investors.
The prosecution said Baek may have been involved in the creation of the slush fund amounting to billions of won, which was orchestrated by former CEO Min. It said investigators plan to summon Baek for questioning in the coming days.
On Oct. 2, the prosecution raided KT&G headquarters, offices of its affiliates and Min’s house, to confiscate computer files and financial documents.