The fundamental principle of KT&G’s Dividend Policy is to effectively and efficiently allocate its resources in sustainable investments with future growth potential as well as increase shareholder returns, in order to simultaneously enhance the company’s intrinsic value and shareholder value.

KT&G’s dividend policy takes into consideration various factors such as its Future Investment Plans and Dividend Stability, Cash Flow, as well as its Net Income for the current period. KT&G operates an absolute dividend policy which ensures steady Cash Dividends that is based on Dividends Per Share as well as targeting above 50% payout ratio.

Decisions on the level of dividend payments are made through Board of Director meetings, and are approved at the Annual General Meeting of Shareholders.

The company aims to improve market predictability by specifying Dividend Policy and announcing mid-to-long term Share Return Policy. For 3 years (FY 2021~2023), KT&G is planning to pay about 1.75 trillion Cash Dividends.

Based on its mid-to-long term growth strategies, KT&G will continue to do its best to ensure that shareholders’ rights to a fair level of dividend payments are honoured.