"Easing Farmers' Burden from Rising Fuel Costs"... KT&G Raises Purchase Price of Tobacco Leaves

About 2.2 Billion Won Increase Over Last Year, Including Fuel Cost Support
4 Hundred Million Won Provided for Farmers' Health Checkups and Children's Scholarships

KT&G announced on May 20 that it has decided to raise the purchase price of domestic tobacco leaves to ease the burden on tobacco leaf farmers.

The company explained, "We plan to invest an additional 2.2 billion won compared to last year, taking into account the increased management burden on farmers due to rising fuel and labor costs," adding, "By providing support that exceeds the rate of inflation, we aim to strengthen our cooperative relationship with tobacco farmers."

Jung Sunghun, Head of Purchasing Operations at KT&G (left), and Jang Sungwoo, Chairman of the Korea Tobacco Cooperative Federation (right), are having a photo session to commemorate the subsidy delivery ceremony on the 19th. Provided by KT&G.

On May 19, KT&G also delivered 400 million won in welfare support funds for domestic tobacco farmers to the Central Federation of Tobacco Production Cooperatives through the Tobacco Production Stabilization Foundation. This subsidy will be used for farmers' health checkups and scholarships for their children, benefiting approximately 750 people.

The company has been providing support for health checkups and scholarships since 2013 to assist tobacco leaf farms facing challenges such as an aging population and labor shortages. The cumulative number of beneficiaries to date is about 16,500.

Since 2002, KT&G has purchased 100% of the domestic tobacco leaf crop each year and has supported farmers in establishing an income base. During the farming season, to help farmers facing financial difficulties, the company pays 30% of the planned purchase amount in advance, interest-free, between April and May. In addition, the company has moved up the tobacco leaf purchase season from September to July, paying the purchase price two months earlier than before as part of its support measures.

Seongheon Jung, Head of Purchasing Operations at KT&G, stated, "Farmers are facing increasing difficulties due to the burden of fuel costs caused by the recent Middle East crisis and high labor costs," adding, "We will continue our efforts for mutual growth with our key partners, the tobacco leaf farmers, through ongoing win-win initiatives."

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