KT&G taps senior executive VP as new CEO

KT&G's Senior Executive Vice President Bang Kyung-man [KT&G]

KT&G, Korea’s largest tobacco company, tapped current Senior Executive Vice President Bang Kyung-man as its new CEO, according to the company’s CEO Candidate Recommendation Committee on Thursday.

Bang is set to become the next chief of the company upon receiving approval at the general shareholders’ meeting in March.

It has been nine years since the leadership of the tobacco company changed, marking the conclusion of Baek Bok-in’s third consecutive term as the incumbent head in March.

Bang graduated with a bachelor’s degree in economics at Hankuk University of Foreign Studies and an MBA at the University of New Hampshire. He joined the tobacco company, then known as Korea Tobacco and Ginseng, in 1998 and has held various management positions in branding, marketing and global strategy.

The prospective chief is evaluated to have contributed to formulating the company’s mid-to-long term growth strategies across its three core business areas — next-generation products, health functional food and overseas combustibles.

His notable achievements include expanding the export channels for KT&G’s ESSE tobacco brand during his tenure as the managing director of brand management.

The committee had shortlisted four CEO candidates on Feb. 16 and tapped Bang to head the company after conducting in-depth interviews and evaluating the nominees based on the five key competency criteria: management expertise, global acumen, strategic thinking skills, stakeholder communications and universal morality & ethical awareness.

“Members have been fully committed to ensuring transparency throughout the candidate assessment process and fair competition without interference,” stated Kim Myung-chul, chairman of the KT&G’s CEO Candidate Recommendation Committee.

Bang commented that he will commit “wholeheartedly to ensure that KT&G leaps forward as a "global top-tier company" by leading innovation and seizing future growth opportunities.

KT&G's appointment process involves three steps: assessment by a governance committee consisting of outside board members, a committee recommendation, and approval at a shareholders' meeting.

With one step to go, it remains to be seen whether Bang’s nomination will proceed smoothly at the general shareholder’s meeting and whether the National Pension Service, the second largest shareholder, will exercise its voting rights.

The company has been criticized regarding transparency in the CEO nomination process, which included outside directors who were appointed during the current CEO’s term.

Before, the National Pension Service voiced opposition to the appointments of the heads of the telecom company KT and steel company Posco. The state-run fund is the largest shareholder of both companies.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]