KT&G Decides on Share Buyback and Cancellation: "KRW 360 Billion Scale"

2.07 Million Shares, Equivalent to 2% of Total Shares Outstanding
Buyback to Begin on September 23

On September 22, KT&G announced that its board of directors had decided to repurchase and cancel 2.07 million shares of its own stock, amounting to approximately KRW 360 billion, which is about 2% of the company's total shares outstanding.

In February, KT&G had stated its plan to repurchase and cancel over KRW 300 billion worth of treasury shares. Starting from September 23, KT&G will begin buying back its own shares on the open market, and intends to cancel all shares acquired after the purchase is completed.

Previously, in April, KT&G had canceled all of its treasury shares worth KRW 1.8 trillion. As a result, it has surpassed its medium- to long-term (2024–2027) share cancellation goal, set in November 2024, which targeted cancelling 20% of the total number of shares outstanding as of 2023.

In the first half of this year, KT&G posted consolidated revenue of KRW 3.4052 trillion and operating profit of KRW 779 billion, up by 12.0% and 22.6%, respectively, compared to the same period last year. Solid results were mainly led by the company’s core business, including overseas conventional cigarettes and next-generation products (NGP) such as next-generation tobacco.

On this basis, the interim dividend was set at KRW 2,000, up KRW 600 from last year's KRW 1,400. KT&G plans to announce a new medium- to long-term shareholder return policy focused on enhanced dividends during the fourth quarter of this year.

A KT&G representative said, "We decided on this share repurchase and cancellation to improve the predictability of our shareholder return policy, strengthen trust in the capital market, and enhance shareholder value per share." The representative added, "We will continue to work to create a virtuous cycle of earnings growth and increased shareholder returns, further enhancing shareholder value going forward."

Meanwhile, U.S. investment firm Capital Group has increased its equity stake in KT&G to 8.22%, and the world’s largest asset management company, BlackRock, also holds a 6.15% stake.

This content was produced with the assistance of AI translation services.