Korea sold its tobacco monopoly KT&G, which then grew into a global player.

Korea Tobacco & Ginseng grew out of a government tobacco monopoly, became a state-owned firm in 1987, was listed on the Korea Stock Exchange in 1999, and completed its privatisation in October 2002 when the state sold its shares on the exchange.

After the sale the Industrial Bank of Korea became the largest shareholder at 10.75%, and foreign ownership climbed from 16.85% in 2001 to 59.34% in 2004. Independent directors made up more than 70% of the board, and the company's profitability and cost efficiency improved as the capital market began to monitor management.

Privatisation was intended to end a monopoly culture and force the company to act commercially, which it eventually did by taking its cigarette brands overseas.

After selling its shares in 2002, foreign ownership rose from 16.85% in 2001 to 59.34% in 2004, while return measures and cost efficiency improved.

Government monopolies were seen as inefficient and hard to monitor.

A public listing would bring market discipline and outside capital.

Foreign and institutional investors saw a profitable, cash-generative company.

Overseas growth needed a business free to compete and invest.

Privatising a state monopoly can raise efficiency and pull in foreign owners, but the payoff comes from stronger governance and oversight, not simply from finding a buyer.

KT&G carried the privatisation into global markets, making its flagship Esse the world's best-selling ultra-slim cigarette and selling more than four billion cigarettes in Indonesia in 2020 alone. By early 2021 its products were available in more than 100 countries. Its corporate governance stayed contentious, which made KT&G a reference case for why a sale alone does not fix a company.