KT&G Donates COVID-19 Relief Supplies to the Indonesian Government

· *Delivery of Relief Supplies such as Medical Oxygen Generators and Face Masks**…** A Total of IDR 1.9 Billion Provided in Tailored Support*
· *Global company KT&G provides approx. IDR 7.4 Billion in social contributions over 2 years to help overcome the COVID-19 crisis*

SEOUL, South Korea, Oct. 29, 2021 /PRNewswire/ -- KT&G, a global company headquartered in Korea, held an emergency relief supplies delivery ceremony at the Ministry of Health of the local government in Zatarta on the 15th to help Indonesia, which is struggling with the ongoing COVID-19 pandemic.

KT&G's donation of emergency relief supplies was provided in collaboration with the Indonesian government and the Korea Trade-Investment Promotion Agency (KOTRA). Following the proposal of the Indonesian Ministry of Health, KOTRA encouraged Korean companies to provide medical equipment (oxygen equipment) to Indonesia, a major partner in trade and economic cooperation. KT&G responded rapidly and delivered relief supplies.

The items donated by KT&G are 10 oxygen generators and KF94 face masks required on medical sites in Indonesia. The total donation amounts to IDR 1.9 billion (USD 130,000).

The delivery ceremony was held by the Indonesian Ministry of Health's Crisis Center. At the ceremony, Dr. Eka Husup Singka, Director of the Crisis Center (Kepala Pusat Krisis Kesehatan) gave thanks, and this was followed by keynote speeches by each company and delivery of letters of appreciation under the name of the Minister of Health. A total of six companies attended the delivery ceremony, and KT&G was the only overseas company to attend.

KT&G has been continuously providing tailored support to help the country overcome the local COVID-19 situation as a company operating business sites in Indonesia.

In May of last year, KT&G provided COVID-19 diagnostic kits worth IDR 1.2 billion (USD 90,000) to the Indonesian government. The decision to provide such support was made considering the lack of basic medical equipment such as diagnostic kits and protective clothing due to the rapid spread of COVID-19 at the time.

KT&G procured diagnostic kits from Korea and sent them to Indonesia, and KT&G local subsidiary in Indonesia delivered the goods directly to the Indonesian government's Indonesian National Board for Disaster Management (Badan Nasional Penanggulangan Bencana - BNPB). The goods donated by KT&G were internationally recognized Korean-made COVID-19 diagnostic kits, capable of diagnosing 6,300 persons.

In addition, KT&G is contributing to overcoming the crisis through a campaign to support Indonesian medical staff, donation of Korean red ginseng, and establishment of a vocational training center to support self-reliance among local vulnerable groups. KT&G has donated a total of 7.4 billion IDR (USD 530,000) for social contribution projects from the beginning of last year to the present to help Indonesia overcome the COVID-19 crisis.

Jaeyoung Cho, Chief of Global Headquarter of KT&G said, "As a company that has been operating in Indonesia for more than a decade, we have provided tailored relief supplies requested by the local government to help overcome the COVID-19 pandemic together." He added, "I hope that the oxygen generators and face masks will be of much use in the medical field to help the Indonesian people overcome the crisis."

Meanwhile, KT&G is the world's fifth-largest global company in terms of cigarette market share and sales volume. The company is also a conglomerate, with major business portfolios such as health functional foods, real estate, biopharmaceuticals and cosmetics in addition to its tobacco business.

KT&G recorded sales of KRW 5,301.6 billion (USD 4.6 billion) on a consolidated basis last year, and despite fierce competition with multinational global tobacco companies such as PMI and BAT, it has maintained its No.1 position in the Korean tobacco market with a market share of 64% (as of 2020).

In particular, KT&G is rapidly expanding its tobacco business into overseas markets. Last year, despite the global COVID-19 pandemic, KT&G entered 30 new countries and have grown into a global tobacco company exporting to more than 110 countries. KT&G's mid- to long-term vision is to become the world's 4th-largest global company by expanding our export territory to over 200 countries by 2025.

In the case of Indonesia, KT&G entered the market by acquiring a local tobacco manufacturing company, Trisakti, in July 2011 in order to secure kretek (clove) cigarette manufacturing technology and superior quality.

Then, in February 2013, the company established PT KT&G Indonesia, a corporation in charge of overall distribution and logistics in Indonesia. Since 2016, the company has been leading local job creation, providing over 900 new jobs every year and employing a cumulative total of 4,800 people in Indonesia.

In addition, the local corporation is contributing to the revitalization of Indonesia's economy by purchasing leaf tobacco and raw materials produced in Indonesia. KT&G, which has been active in Indonesia for over a decade, is widely known as a company that fulfills its social responsibilities as a global corporate citizen.

**(Attachment) Photo taken at the 'Emergency Relief Supplies Delivery Ceremony' held by the Indonesian Ministry of Health. * *A photo taken at the 'Emergency Relief Supplies Delivery Ceremony' held by the Indonesian Ministry of Health in Jakarta on October 15. Starting from the left in the first row: Suh, SukHyun (KT&G CSR Director), Eka Husup Singka (Kepala Pusat Krisis Kesehatan), Bok, Dug Gyou (Director of KOTRA Jakarta)
A photo of emergency relief goods provided by KT&G to the Indonesian government to overcome COVID-19 in Indonesia


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