KT&G Raises Domestic Leaf Tobacco Purchase Prices for Shared Growth with Local Farmers
Approximately KRW 2.2 billion increase from the previous year, including fuel cost support; KRW 400 million also provided for farmers’ health checkups and children’s scholarships
사진설명
On May 19, KT&G announced an increase in the purchase price of domestically produced tobacco leaves to support shared growth with local tobacco farmers and delivered KRW 400 million in welfare support funds. The photo shows KT&G employees volunteering for transplantation of tobacco seedlings at a tobacco farm in Jincheon, Chungcheongbuk-do, on April 15.
사진설명
On May 19, KT&G announced an increase in the purchase price of domestically produced tobacco leaves to support shared growth with local tobacco farmers and delivered KRW 400 million in welfare support funds. The photo shows Jeong Seong-heon, Director of KT&G Purchasing Operations Headquarters (left), and Jang Seong-woo, Chairman of the Korea Tobacco Growers Organization (right), posing for a photograph during the support fund delivery ceremony.
KT&G (CEO Bang Kyung-man) has decided to increase the price of domestically produced tobacco leaves purchased from local farmers, easing the financial burden on tobacco growers amid rising costs driven by sharp increases in fuel prices and other expenses.
To alleviate the burden resulting from high oil prices and rising labor costs, KT&G plans to increase its investment in the purchase of domestic tobacco leaves by KRW 2.2 billion year-on-year. By exceeding the inflation rate with this support, the company aims to boost mutually beneficial cooperation with tobacco farming communities.
On May 19, KT&G also delivered a total of KRW 400 million in welfare support funds to the Korea Tobacco Growers Organization at the Tobacco Production Stabilization Foundation.
The support funds will be used to cover health checkup expenses for tobacco growers and scholarship assistance for their children, with approximately 750 individuals expected to benefit. Since 2013, KT&G has provided health checkup benefits and scholarships for 14 consecutive years to reduce the economic burden faced by tobacco farming households struggling with an aging farming population and other issues. Through these efforts, the cumulative number of beneficiaries has reached approximately 16,500 growers.
Since 2002, KT&G has purchased 100% of all domestically produced tobacco leaves each year, helping to support a stable income base for local farming households. For farmers facing financial difficulties during the farming season, the company also offers support measures, including interest-free advance payments equivalent to 30% of the anticipated purchase amount in April and May. In addition, KT&G moved forward the tobacco leaf purchasing period from September to July, enabling earlier payment settlements by two months. KT&G has also carried out employee volunteer activities for 20 years since 2007 to support tobacco farmers during labor-intensive periods such as seedling transplantation and harvesting seasons.
Jeong Seong-heon, Director of KT&G Purchasing Operations Headquarters, stated, “We decided to raise the purchase price of domestic tobacco leaves to take the initiative in supporting farmers who struggle with increased fuel costs due to the recent Middle East conflicts and high labor costs.” He also added, “We remain committed to carrying out our shared growth policy with tobacco farming communities, our key partners.”