KT&G celebrates 30th anniversary
KT&G plnat in Sintanjin, South Chungcheong Province / Courtesy of KT&G
By Nam Hyun-woo
KT&G President Baek Bok-in vowed to push for new growth of the country’s largest cigarette manufacturer during an event to celebrate the company’s 30th anniversary at its head office in Daejeon, Friday.
“KT&G’s history dates back to the late 19th century when a ginseng division of the finance department was established. 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.”
The ginseng division of the finance department was set up in 1899 in the waning years of the Chosun Kingdom (1392-1910).
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.
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.
Since 2002, the company has chalked up fast growth through leadership of professional businessmen not like other domestic conglomerates, which are controlled by founding families.
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. 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. Under its wing, KT&G has Korea Ginseng Corporation, which sells ginseng and ginseng supplements, cosmetics producer Cosmocos and Yungjin Pharmaceutical.
The company is also praised for its transparency and advanced governance structure.