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KT&G's Ambitious Share Buyback Plan

On September 22, 2026, KT&G Corporation, under the leadership of CEO Kyung-man Bang, made headlines with its announcement of a KRW 360 billion share buyback and retirement program. This initiative is aimed at enhancing shareholder value and reinforcing the company’s commitment to its investors.

The company plans to repurchase approximately 2.07 million shares, which represents about 2% of its total issued shares. This share repurchase will commence on September 23 and all acquired shares will be retired upon completion of the buyback process. KT&G's decision aligns with its earlier declared intentions stated in February to return over KRW 300 billion to shareholders.

Earlier this year, the company successfully retired all previously held treasury shares valued at around KRW 1.8 trillion. Consequently, KT&G has not only met but exceeded its goal under the 2024–2027 mid- to long-term shareholder return plan, which sought to retire 20% of outstanding shares by the end of 2023.

In tandem with these plans, the news comes against a backdrop of impressive earnings performance. In the first half of the year, KT&G reported consolidated revenues of KRW 3.4052 trillion, indicating a 12.0% growth from the year prior. Operating profits saw an even more impressive rise, climbing 22.6% year-over-year to reach KRW 779.0 billion. This strong financial performance was attributed largely to the company's increased competitiveness in core areas, particularly in international cigarette sales and Next Generation Products (NGP).

Additionally, bolstered by this robust performance, KT&G is increasing its interim dividend by KRW 600, moving from KRW 1,400 to KRW 2,000 per share. The company is also poised to unveil a comprehensive mid- to long-term shareholder return policy slated for the fourth quarter, aimed at enhancing dividends further.

The company’s strong earnings and growth trajectory have attracted the attention of significant global asset managers. For instance, Capital Group, based in the U.S., has boosted its stake in KT&G to 8.22%, while BlackRock, the world's largest asset manager, holds a 6.15% stake in the company.

A spokesperson for KT&G expressed the rationale behind the share buyback initiative, stating, "We decided to proceed with the share buyback and retirement to enhance the predictability of our shareholder return policy, boost capital market confidence, and improve per-share value." The official emphasized KT&G's ongoing commitment to enhancing shareholder value through a balanced approach of earnings growth and expanded returns.

KT&G's strategic moves underscore its ongoing transformation and commitment to its shareholders. By aligning repurchase initiatives with a strong operational performance, the company is positioning itself not just to meet current market expectations but also to generate sustained growth in shareholder value in the long term. As KT&G continues to evolve amidst changing market dynamics, its strategic focus remains keenly on delivering value and confidence to its investors.