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[Alpha Biz=(Chicago) Reporter Kim Jisun] KT & G said on the 17th that "it has not been more sanctioned than on violations of the law" in relation to reports that it is under investigation by the U.S. Department of Justice and the Food and Drug Administration (FDA).
KT & G announced on Dec. 14, 2021 that it received a comprehensive document submission order from the U.S. government, announcing that it would suspend its U.S. business due to the need to review its U.S. business due to stricter regulations on cigarettes and intensifying market competition.
"We are faithfully responding to the U.S. government's comprehensive document submission order on the regulatory compliance of tobacco products sold in the United States," KT & G said. "The U.S. Justice Department is demanding confidentiality of the matter under investigation."
A daily newspaper reported earlier that KT & G omitted harmful substances from carnivals and times released in the U.S. from the FDA report and is under investigation for violating the principle of product identity. In addition, it raised the possibility that it would not be able to get back about 1.54 trillion won in long-term deposits paid to the state government for U.S. projects.
KT & G, which entered the United States in the early 2000s, paid a long-term deposit to the US state. The U.S. collects long-term deposits from the state in case of health or physical damage to smokers due to the wrongdoings of tobacco vendors. If there is no problem, it will be returned to the company 25 years after the payment date.
KT & G said, "there has been no problem so far, so the company expects to receive long-term deposits sequentially from 2025 depending on the time of payment."
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
