KRW 2.7 Trillion This Year Alone... KT&G Accelerates Treasury Share Cancellation Drive

KRW 2.7455 Trillion Worth of Treasury Shares Canceled Over 8 Months, Strengthening Shareholder Returns
Interim Dividend Increased from KRW 1,400 to KRW 2,000 per Share
Dual-Track Shareholder Return Policy with Treasury Share Buybacks and Cancellations

KT&G is accelerating its shareholder return policy by canceling KRW 2.7 trillion worth of treasury shares so far this year.

According to the industry on September 23, KT&G held a board meeting the previous day and decided to acquire and cancel 2,071,346 shares of treasury stock, worth about KRW 360 billion, which accounts for approximately 2% of the total number of issued shares. The company announced that it will utilize the canceled treasury shares as part of its shareholder return initiatives.

With this decision, the total value of KT&G's treasury share buybacks and cancellations this year has surpassed KRW 2.7 trillion. Previously, the company canceled 3.3 million shares in February and then canceled all of its treasury shares held at the time, totaling 10,866,189 shares, in April. Including the approximately 2.07 million shares this time, KT&G has canceled a total of 16,237,535 shares so far this year. In terms of value, the treasury shares canceled over the past eight months amount to KRW 2.7455 trillion. Additionally, KT&G has increased its interim dividend from KRW 1,400 to KRW 2,000 per share this year and is also reviewing an increase in its year-end dividend.

KT&G Headquarters

This proactive approach has attracted the attention of global institutional investors, leading world-renowned asset management firms such as Capital Group (8.22%) and BlackRock (6.15%) to increase their stakes in KT&G. The company stated that it aims to further strengthen shareholder returns by improving earnings, particularly in its overseas businesses. On a consolidated basis, KT&G's sales in the second quarter of this year reached KRW 1.7016 trillion, and operating profit was KRW 414.5 billion, representing year-on-year increases of 9.9% and 18.5%, respectively.

A KT&G spokesperson stated, "Recent shareholder return expansions are being pursued based on profits generated from our core business, rather than relying on the depletion of our cash reserves," adding, "As our profits grow, the portion returned to shareholders will also increase, establishing a virtuous cycle."

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