According to a statement released by KT&G on the 10th, CEO Baek Bok-in expressed during a board meeting the previous day that "new leadership is needed as KT&G moves towards its aspirations of becoming a global leader and undergoing transformation." As a result, he has decided to step down and will not seek reappointment."
Baek Bok-in expressed his desire to appoint the next CEO who possesses the ability to lead the company towards achieving its future vision and driving higher growth on a global scale.
Baek Bok-in joined KT&G through a public recruitment process at the Korea Tobacco & Ginseng Corporation in 1993. He assumed the position of CEO in October 2015 and was successfully reelected in both 2018 and 2021. During his tenure, he bolstered the competitiveness of the e-cigarette business by signing a 15-year contract with Philip Morris International (PMI). This achievement resulted in record-breaking annual sales of approximately 60 trillion Korean won.
Baek Bok-in has decided not to seek reappointment for the fourth term, resulting in a situation where, following KT and POSCO, KT&G also fails to achieve the consecutive tenure of a CEO in a conglomerate.
According to previous reports, financial institutions have predicted that KT&G's revenue for this year may decrease by 0.1% compared to last year, reaching 5.84 trillion won, while operating profit may also decrease by 10.5%, dropping to 1.13 trillion won. This would be the company's first revenue decline since 2018, raising doubts about Baek Bok-in's re-election. Meanwhile, due to changes in KT&G's internal CEO election system, as well as the South Korean government's negative stance on CEO re-election and the attack from aggressive investment funds, Baek Bok-in's path to re-election is not smooth.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
