KT&G announces plan for $2.1 billion share buyback, dividends

[KT&G]

KT&G, Korea's largest tobacco manufacturer, announced plans Tuesday to issue 1.8 trillion won ($1.4 billion) in cash dividend and cancel or buy back 1 trillion won worth of its shares over the next three years.

In addition to canceling newly acquired shares, the company will cancel approximately half of its existing treasury shares, equivalent to around 10 million shares over the next three years. This is approximately 7.5 percent of its outstanding shares. KT&G's total shareholder return rate from 2021 to 2023 stands at 93 percent, which surpasses the average total shareholder return rate of the Global Big 4 tobacco companies over the last three years at 81 percent.

The announcement was made during an investor relations event named 2023 Value Day held Tuesday.

Along with its shareholder return plans for 2024 through 2026, KT&G delivered updates its progress around the company’s future vision that looks toward three core business areas focusing on heat-not-burn products and health supplements, during Tuesday's conference.

KT&G signed an agreement with the Indonesian Ministry of Investment to secure support for its investment for a new manufacturing plant in Indonesia in September. The company also embarked on the construction of a hybrid production facility in Kazakhstan in October, designed to accommodate the production of both heat-not-burn consumables and combustible products.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]