Opening ceremony of a “Vocational Training Center” in Malang, Indonesia, March, 2021
KT&G, the world’s fifth largest tobacco company based on market share, participates in addressing social issues throughout Indonesia's education, housing, and environmental fields. It helps the disadvantaged to develop their capabilities and help them become self-reliant through operating its “Vocational Training Center” and more.
KT&G established the training center to enhance the self-reliance and employment capabilities of the alienated class. In December of last year, the facility was built in UKCW University in Malang, Indonesia, and since January of this year, sewing technology education is provided free of charge targeting families in need and more.
The “Sangsang Fund”, a voluntary donation from KT&G executives and employees (with Matching grant from the company) funded the construction of the center. This fund reached KRW 4 billion (US$3.4 million).
KT&G differentiates its overseas expansion strategy depending on local market conditions, systems, consumer preferences, etc. In the case of Indonesia, in July 2011, KT&G took over Trisakti, an Indonesian tobacco company. Then, as a corporation in charge of distribution and logistics in Indonesia, PT KT&G Indonesia was established in February 2013.
KT&G, which has made full-fledged entry into Indonesian market 10 years ago when it took over took over Trisakti, an Indonesian kretek company in February, and subsequently establishing its distribution and logistics company -- PT KT&G Indonesia-- in February 2013. Since 2016, KT&G contributed to the local community by creating around 900 new jobs yearly, a cumulative total of about 4,800 people, in Indonesia and to revitalizing Indonesia's economy through purchasing local tobacco leaf and raw materials and so on as well.
Since the domestic Korean market was opened to foreign cigarette makers in 1988, KT&G, faces fierce competition from lobal manufacturers, such as PMI and BAT. Despite that, KT&G retains its No. 1 position in the South Korean market recording a market share of 64% (as of 2020). Last year, it recorded KRW 5,301.6 billion in gross sales on a consolidated basis and is a listed company with a market capitalization of KRW 11 trillion recorded in the South Korean stock market.
KT&G is also expanding into overseas markets rapidly. Despite the worldwide pandemic last year, it entered approximately 30 new countries and grew into a global enterprise exporting to about 110 countries.