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.
We welcome news tips, article submissions, interview requests, or comments on this piece.
Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn
Notice
1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.
2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.
3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.
4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.
Copyright
This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.
For copyright-related inquiries, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.
We welcome any corrections or feedback. Please contact us at: info@2firsts.com
