After successfully completing its privatization in 2002, KT&G has capitalized upon lessons of its experiences to take stronger initiatives to reform and innovate its businesses, thereby effectively executing its business model diversification strategies and achieving solid management performance results. As a consequence, KT&G has grown into a globally competitive business, facilitating enhanced communication among stakeholders and practicing a sustainable growth management. By applying the three core beliefs of its management philosophy - €œRighteousness, € €œEnlightenment, € and €œCompanionship€ - to every aspect of its business engagement, KT&G has continued to win commendations and respect for its business transparency and ethics such as corporate governance, ethical and transparent management practices, and business innovations, among others. KT&G has also shared created values with its clients, shareholders, and constituents, further with the society at large with a greater sense of balance. While improving superior product quality and manufacturing capabilities by competing with foreign cigarette manufacturers operating their production bases in Korea, KT&G has dominated domestic market over 70% by developing and releasing new products marked by ceaseless technological innovations. KT&G has also successfully developed over 40 export markets including Russia, CIS, Middle East, Central Asia, China, and Southeast Asia with its flagship product €œEsse€ spearheading its campaign.In order to enhance its corporate value, KT&G will continue to reform and innovate its organization and businesses alike. By further strengthening its core businesses, developing growth drivers for the next generation, and achieving a better balanced business portfolio, KT&G will take a larger step toward building an exceptional global business of far stronger growth potential, profitability, stability, and sustainability.