KT&G to Distribute 1.8 Trillion KRW in Dividends Over Next 3 Years... 1 Trillion KRW for Share Buybacks and Cancellation

Value Day Announces 2.8 Trillion KRW Shareholder Return Plan

KT&G announced on the 14th that it held 'KT&G Value Day' 2023, an event to disclose its mid- to long-term shareholder return policy, progress on growth investments in the group’s core businesses, and financial strategies.

At the Value Day held online on the 13th, KT&G revealed its mid- to long-term (2024?2026) shareholder return plan and shared progress on implementing its future vision centered on the three core businesses: NGP (Next Generation Products), Global CC (cigarette tobacco), and health functional foods.

On this day, KT&G expressed a strong commitment to enhancing shareholder value from a long-term perspective and announced a shareholder return plan totaling approximately KRW 2.8 trillion over the next three years, including about KRW 1.8 trillion in cash dividends and around KRW 1 trillion in share repurchases and cancellations. Additionally, KT&G unveiled a new shareholder return policy to cancel about 10 million shares (approximately 7.5% of the total issued shares), which is roughly half of the currently held treasury shares, over the next three years.

Since its listing, KT&G has continuously pursued an active shareholder return policy to enhance shareholder value, achieving a total shareholder return ratio of 93% over the three years from 2021 to 2023. This level is higher than the average of the global 'Big 4' tobacco companies and significantly exceeds the average of the top 10 domestic companies by market capitalization. This year, KT&G also conducted an interim dividend for the first time.

KT&G also shared progress on mid- to long-term growth investments aimed at accelerating global growth in its three core business areas. Earlier in January, the company held an Investor Day and unveiled a growth strategy focused on nurturing the three core businesses, along with a mid- to long-term vision of becoming a 'Global Top Tier' company.

Following the mid- to long-term growth strategy, KT&G signed an investment support agreement with the Indonesian investment department in September to build a new factory, and in October, began construction of a 'hybrid-type' new factory in Kazakhstan to produce NGP and Global CC. Domestically, KT&G is focusing on strengthening production capabilities by establishing a global production innovation base through the expansion of the Sintanjin NGP factory. KT&G’s strategy is to achieve economies of scale by expanding production capacity in the NGP and Global CC business sectors both domestically and internationally, thereby securing cost competitiveness and improving profitability.

KGC Ginseng Corporation is accelerating growth investments based on country-specific tailored strategies. The company is focusing on investments and R&D in key overseas markets such as China and the United States to secure long-term growth drivers.

A KT&G official stated, "The company has achieved continuous sales growth through a balanced business portfolio and is focusing on global growth in the three core business areas beyond the limitations of the domestic market. We will continue to create sustained results and enhance shareholder value to leap forward as a truly global top-tier company."

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