KT&G Announces KRW 360 Billion Share Buyback and Retirement to Enhance Shareholder Value

KT&G announced that it will purchase 2.07 million shares starting September 23, 2026, and will retire all acquired shares upon completion of the buyback. The company plans to allocate approximately KRW 360 billion for this initiative, aiming to enhance shareholder value.

The decision follows a previously announced plan in February to buy back and retire over KRW 300 billion worth of shares. KT&G had previously retired all its treasury shares, valued at around KRW 1.8 trillion, exceeding its retirement target set under its 2024–2027 shareholder return plan, which aimed for the retirement of shares equivalent to 20% of total shares outstanding as of 2023.

In terms of financial performance, KT&G reported consolidated revenue of KRW 3.4052 trillion and operating profit of KRW 779.0 billion for the first half of the year, marking increases of 12.0% and 22.6% year on year, respectively. The growth was attributed to improved competitiveness in its core businesses, particularly in overseas cigarettes and Next Generation Products (NGP).

Based on these results, KT&G raised its interim dividend to KRW 2,000 per share, up from KRW 1,400 a year earlier. The company intends to announce a new mid- to long-term shareholder return policy in the fourth quarter, focusing on strengthening dividend returns.

KT&G has attracted increased investment from major global asset managers, with Capital Group raising its stake to 8.22% and BlackRock holding a 6.15% stake. A company official stated, "We decided to carry out the share buyback and retirement to enhance the predictability of our shareholder return policy, strengthen capital market confidence and enhance per-share value." The official emphasized the company's commitment to creating a virtuous cycle of earnings growth and expanded shareholder returns.