'100 Days in Office' Kim Eun-ji, President of BAT Korea's Bold Move... Making Korea a Global Hub

First Female CEO in Tobacco Industry Marks 100 Days in Office... Aiming to Develop Korea as a Global Hub
Sacheon Factory Exported $300 Million Last Year, Targeting $400 Million This Year... Emphasizing Productivity
Accelerating Market Share Expansion... Committed to Sustainable Growth and Social Contribution

Eunji Kim, President of BAT Korea, is explaining the business vision at a press conference held on the 5th at The Plaza Hotel in Seoul to commemorate the 30th anniversary of the company's founding. Photo by Seonae Lee lsa@

[Asia Economy Reporter Lee Seon-ae] "We will grow Korea into a global hub for product manufacturing and talent creation." The vision of Eunji Kim, CEO of BAT Korea, who became the first female CEO in the tobacco industry, was clear. She plans to actively respond to the changing market to solidify the status of the Korean branch and further lead the group's vision of "A Better Tomorrow."

On the occasion of BAT Korea's 30th anniversary and her 100th day as the first female CEO, Kim held an event on the 5th at The Plaza Hotel in Seoul to present the world's first comprehensive evaluation of the harm reduction of the heated tobacco product Glo, launched first in Korea. She emphasized the significance of Korea being the first country to announce this, as the Korean market is a key market for global heated tobacco products.

Kim stated, "BAT Korea will proactively respond to upcoming changes," adding, "Since the company's establishment in 1990, we have contributed to the economic and industrial development of South Korea for 30 years, and going forward, we will lead management with a focus on ESG (Environmental, Social and Governance) goals that address the environmental and social impacts on the local community."

Appointed in July, Kim joined BAT Korea in 2004 and has held key positions over the past 16 years, including managing the Dunhill brand, overseeing domestic sales, and business development. Just before her appointment as CEO, she served as the brand head at BAT Indonesia. As the first female CEO in the tobacco industry, there is significant industry interest in whether she can play the role of a "savior" for BAT Korea, which has seen frequent CEO changes due to sluggish sales.

In response, Kim highlighted BAT Korea's productivity, saying, "We established and have been operating a production plant in Sacheon, Gyeongnam since 2002. Last year, we achieved $300 million in exports, and this year, we expect to surpass $400 million in exports in just over a year." She attributed this to stable labor-management relations based on mutual trust and the efforts of employees to improve quality.

She also hinted at positive changes in performance. Kim said, "Last year, our domestic market share grew from 11.97% to 12.19%, and particularly, Glo's market share increased from 5.15% to 6.44% during the same period." She evaluated this as quite encouraging, given that market share changes in the tobacco market are generally small. She cited the favorable consumer response to the latest Glo model, "Glo Pro," which applies the innovative "Induction Heating System," and the growing perception of it as a harm reduction product as reasons for the market share increase.

BAT Korea recorded sales of 356.2 billion KRW and an operating loss of 5.1 billion KRW last year. Compared to 2018, when it turned to a deficit, sales decreased by 3.2%, and operating losses increased by more than 4.3 billion KRW. The poor performance has been a background for frequent CEO changes. Former CEO Eric Stoll, appointed in 2016, served less than six months, and Tony Hayward, who took office that year, resigned in 2017. Matthew Jurey served until June last year, and his successor, Eunseong Kim, who held the title of "BAT Korea's first Korean CEO," stepped down after just one year.

Seemingly aware of this, Kim emphasized, "We will continue research and development and facility investments aimed at reducing the harmful effects of tobacco on Korean society to maintain growth trends." She added, "By focusing on eco-friendly and responsible operations and adapting to market conditions, I believe sustainable growth will naturally be possible." She envisions expanding the market share of heated tobacco products through continuous investment based on scientific evidence and calls for regulatory easing to recover performance.

She also promised to continue social responsibility as a company operating in the tobacco business in Korea. Kim explained, "We have been recognized as an excellent employer for two consecutive years and as a company with high quality of life in the workplace. We comply with domestic laws as a tobacco business and have established and adhere to strict marketing standards." She added, "Furthermore, we will support the growth of Korean youth into global talents, not only by nurturing internal talent but also through initiatives like 'BAT Do Dream,' a youth talent development contest."

BAT Korea also showed its commitment to leading the BAT Group's new corporate goal, "A Better Tomorrow," which aims to reduce the health impact of the business by expanding consumers' choices of satisfying yet less harmful products. Kim said, "Currently, 13 million consumers have joined the non-combustible product category, and we aim to expand this to 50 million consumers by 2030." She also expressed ambition to achieve zero carbon emissions.

Meanwhile, BAT Korea introduced its own research results showing that users of the heated tobacco product "Glo" had reduced exposure to harmful substances compared to conventional cigarette smokers.

Dr. James Murphy, head of BAT's harm reduction product research, explained, "Smokers who completely switched from conventional cigarettes to Glo showed a significant reduction in exposure to harmful substances in cigarette smoke within three months. Analysis of multiple measured harmful substances showed that the reduction in harmful substance exposure in the group that switched to Glo was similar to that of the group that completely quit smoking."

Additionally, a study involving 4,500 smokers in Sendai, Tokyo, and Osaka, Japan, found that the main reasons for using heated tobacco products were "potential harm reduction and social considerations, including reduced odor."

This content was produced with the assistance of AI translation services.