[Edaily Reporter Kim Ji-woo ] #KT&G Corporation will repurchase approximately 360 billion won worth of its own shares and cancel them in their entirety. Following the cancellation of all its treasury shares last April, the company is expanding its shareholder returns by undertaking additional repurchases and cancellations.

KT&G Corporation announced on the 22nd that it held a board of directors meeting and decided to buy back and cancel 2.07 million shares of its own stock, representing approximately 2% of the total issued shares. The company plans to begin buying shares on the open market starting on the 23rd and will cancel the entire lot as soon as the acquisition is complete.

This decision concretizes the plan announced last February to repurchase and cancel more than 300 billion won worth of treasury stock. The actual planned repurchase amount has increased by 60 billion won compared to the figure presented at that time.

Previously, in April, KT&G Corporation canceled all of its treasury shares, totaling 1.8 trillion won. Through this, the company has exceeded its treasury share cancellation target—set in the mid-to-long-term shareholder return plan announced in November 2024—ahead of schedule. The original target was to cancel 20% of the total issued shares (as of 2023) between 2024 and 2027.

The company also increased its dividend. This year’s interim dividend was set at 2,000 won per share, a 600-won increase from last year. In the fourth quarter, the company plans to announce a new mid- to long-term shareholder return policy focused on strengthening dividends.

This expansion of shareholder returns is driven by earnings growth. In the first half of this year, KT&G Corporation’s consolidated revenue reached 3.4052 trillion won, and operating profit reached 779 billion won, representing year-over-year increases of 12.0% and 22.6%, respectively. Growth in the overseas cigarette and next-generation tobacco (NGP) businesses led this earnings growth.

A KT&G Corporation official stated, “We decided to conduct this share buyback and cancellation to enhance the predictability of our shareholder return policy and to boost capital market confidence and per-share value,” adding, “We will continue to do our utmost to increase shareholder value by establishing a virtuous cycle of earnings growth and expanded shareholder returns.”