KT&G Abolishes Priority Reappointment Review... "December CEO Candidate Selection Process Underway"

KT&G announced on the 8th that it has amended its board regulations, including deleting a clause that allowed the current president to be prioritized for review if they expressed their intention to renew their term.

On the 7th, KT&G's board of directors held a meeting and discussed the selection process for the next president candidate, resulting in the amendment of the regulations. The verification process for KT&G's president candidates proceeds in three stages: the Governance Committee, the President Candidate Recommendation Committee, and the Board of Directors.

The standing Governance Committee is responsible for proposing evaluation criteria for president candidates, forming the pool of candidates, and identifying and recommending candidates for review. Based on this, the non-standing President Candidate Recommendation Committee conducts a systematic and in-depth evaluation of the candidates and selects the final candidates to recommend to the board.

Subsequently, the board resolves the selection of candidates and the agenda for the shareholders' meeting, and finally, the appointment of the president is decided at the shareholders' meeting reflecting the consensus of all shareholders. Members of both the Governance Committee and the President Candidate Recommendation Committee are composed entirely of outside directors independent from management.

Lim Min-gyu, chairman of KT&G's board, stated, “We recently amended the board regulations to enhance the fairness and transparency of the president appointment process,” adding, “The Governance Committee will be held in December, and the appointment process will proceed according to proper procedures. Once related procedures are underway, we plan to disclose them transparently.”

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