KT&G begins CEO recruitment and announces candidate requirements

KT&G Corp. has initiated the process of appointing its next chief executive officer.

To ensure a broad pool of qualified candidates, the external CEO candidate pool will consist of a combination of open recruitment and recommendations from search firms. The internal CEO candidate pool will include individuals who participated in KT&G’s senior management training program, as well as current CEO Baek Bok-in. The Governance Committee will fairly evaluate both the external and internal candidate pools to establish an initial shortlist for the CEO position.

The Governance Committee will then form an advisory panel of external experts to provide objective perspectives during the selection of the final CEO shortlist, thereby enhancing the fairness of the process. Under the direction of the Governance Committee, KT&G plans to actively identify and cultivate both external and internal CEO candidates in the future.

The qualification criteria for candidates participating in the open recruitment for the CEO position include experience serving as a representative director in the tobacco or consumer goods industry (manufacturing or distribution business), or experience managing profit and loss for a business unit equivalent to that of a company representative director.

KT&G listed the following required capabilities:

A deep understanding of the tobacco or consumer goods industry and management expertise, along with the ability to drive new business initiatives and global expansion;
business acumen and strategic thinking that are sensitive to changes in the operating environment;
the ability to communicate with and manage stakeholders;
and the general ethics and moral awareness required of a CEO.
Applications for candidates in the open recruitment process will be accepted by registered mail or email until January 10, 2024. Detailed application information will be available on the KT&G website starting December 28, 2023.

According to KT&G, the CEO appointment process will be conducted in a fair and transparent manner over approximately three months. By the end of January, the Governance Committee will finalize the initial CEO shortlist by incorporating the fair and objective opinions of the advisory panel of external experts and will recommend it to the CEO Candidate Recommendation Committee.

After a systematic and in-depth review of the shortlisted candidates, the CEO Candidate Recommendation Committee will name the final CEO candidate by the end of February and report to the board of directors. The board will then place the matter on the agenda for the annual general meeting of shareholders, and the CEO will be appointed upon approval at the annual general meeting at the end of March.

“We have consistently worked to improve the CEO appointment process, with a particular focus on strengthening its transparency, fairness, and objectivity,” said KT&G Chairman Lim Min-kyu.

“Going forward, we plan to carry out a comprehensive candidate selection process that takes into account the evaluations and perspectives of the advisory panel of external experts.” Earlier this month, KT&G shareholder Flashlight Capital Partners urged the tobacco company to select its next CEO in a more transparent manner after expressing disappointment with the current CEO’s performance and identifying deficiencies in previous election procedures.

In the press release announcing the search for a new CEO, KT&G emphasized that its Governance Committee is composed entirely of outside directors. The company added that only outside directors attended the December 28 board meeting, “reinforcing the company’s commitment to ensuring independent decision-making by the board.”