- Buying additional share and cancellation of 260B KRW, targets the two -digit operational profit and the growth of income based on a solid global company
- Signs the memorandum of understanding with the American tobacco manufacturer Altria, for collaboration in all areas, including the nicotine pocket and functional health foods
Seoul, South Korea,, September 23, 2025 / Prnewswire / – KT & G announced this year’s growth objectives and the return plans for additional shareholders through the “KT & G CEO’s investor day” which was held on 23RDAlso revealing the details of the memorandum of understanding with the American tobacco manufacturer Altria.
During the Investor Day, KT & G CEO, Kyung-Man Bang, said that the company would effectively distribute any excess capital in the future to simultaneously maximize the value of companies and shareholders, improving the “principle of distribution of shareholders’ yields”.
More specifically, KT & G plans to take measures such as the implementation of the total payment ratio of 100% or more; Maintain a dividend distribution ratio of 50% or more; Define a lower limit for dividend yield; And make redemptions of elastic shares throughout the year if the equity prices are considered to be undervalued in relation to the intrinsic value in the long term. The additional shareholder yields after cash production will reflect the tendency to expand dividends and will be prosecuted in accordance with share buybacks.
To achieve this, KT & G has established the minimum annual dividend by action to 6,000 krwan increase in 600 krw of the previous year. In addition, KT & G plans to continue the repurchase of shares and the cancellation amounting to 260 billion krw Use the resources of the liquidation of non -essential assets such as real estate that looks at 24th. This is an increase of year 100 billion krw – With the increase in the dividend, a total of 276 billion additional yields of KRW shareholders will be carried out, representing 171% of the level of the previous year.
KT & G has already completed the cancellation of 10.4% of shares (in 2023). The proportion of the cumulative actions canceled should grow when the repurchase and cancellation provided are executed and reflected.
The reason for its stronger shareholders’ performance policies is considered to be global KT & G activities that are transforming into a growth trend due to the priority task of the CEO Kyung-Man to implement entirely local value chains since its inauguration in inauguration March 2024.
The global cigarette company has carried out five consecutive quarters of “triple growth” of income, operating profit and sales volume from the KT & G profits ratio. The operating profit adjusted for the first half of 2025 showed strong annual growth of 127.8%.
KT & G CEO, Kyung-Man Bang, explained that the strategic export price increases and the increase in the proportions of premium products in the world sector have led to qualitative growth and that the reduction in the manufacturing costs of the global transition of the economic manufacturing system has led to the establishment of a new structure that will increase long-term profitability.
In addition, KT & G targets two -digit growth for operating profit and income this year and plans to strengthen direct communications with shareholders, investors and the capital market through occasions such as CEO’s investor day.
Before the investor session, CEO Kyung-Man Bang of KT & G and CEO Billy Gifford From the high -level American tobacco manufacturer, Altria signed a memorandum of understanding, forming a strategic collaboration base in nicotine and non -nicotine spaces.
Consequently, KT & G and Altria continue the joint acquisition of “Another Snus Factory (ASF)”, a manufacturer of Scandinavian nicotine pockets, in order to participate in the global market for fast -growing nicotine pockets.
In order to search for opportunities to expand nicotine pocket portfolios and increase the presence of the market, KT & G and Altria plan to use the KT & G global distribution network to present the “loop” of ASF and “ON!” Products. The two companies plan to discuss operational details in the space of the nicotine pocket at a later time.
The two companies have also agreed to extend the scope of collaboration by seeking means to optimize the activity of traditional cigarettes to strengthen market competitiveness; Complementary portfolios for diversification; and by other means.
In addition, the two parties will look for opportunities for collaboration on the American market for functional foods of health, seeking ways to improve market penetration using the expertise and capacity of KGC products alongside consumer ideas in the United States and the established commissioning infrastructure of Altria.
A KT & G spokesperson said that “the company has decided to pursue additional redemptions and cancellations as well as high dividend payment policies based on the rapid growth of our global business”, and that “by the memorandum of understanding with the high-level American tobacco manufacturer Altria, KT & G will ensure the future moment of growth by extending the company and competitiveness. “.
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Source KT & G Corporation
