KT&G Joins 'Payment Linked System Partner Companies' for Mutual Growth
Active Support for Stable Operation of Partners
Subsidiary KGC Insamgongsa Also Participates
KT&G announced on the 6th that it will participate as a partner company in the 'Delivery Price Linkage System' and embark on mutual growth with its partner companies.
The Delivery Price Linkage System is a measure to reduce the burden on small and medium-sized partner companies by reflecting the increase in raw material prices in the delivery price when raw material prices rise. It has been implemented since the 4th of last month to establish a culture of win-win transactions and promote a fair market economy.
KT&G had proactively implemented this system even before it was legislated by specifying in its internal regulations and purchase contracts that the purchase contract amount could be adjusted upward if raw material prices rose compared to the contract time, thereby alleviating the burden on partner companies.
In addition to the Delivery Price Linkage System, KT&G operates various support programs to continuously strengthen cooperation with its partners. It supports investment amounts to enhance partners' technological improvement and development capabilities, pays delivery prices in full cash every month to alleviate financial difficulties, and executes payments early before holidays.
Furthermore, to ensure stable operation of farms cultivating one of the important raw materials, tobacco leaves, KT&G supports the distribution of the 'Baepungyeol Fuel Reduction Device,' a device that reduces fuel consumption of tobacco leaf dryers, and since 2013, has provided a total of 3.665 billion KRW for health checkup expenses and scholarships for children to improve farmers' welfare.
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Meanwhile, KGC Ginseng Corporation, a subsidiary of KT&G, is also participating as a partner company in the Delivery Price Linkage System, contributing to reducing the cost burden on partner companies.
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