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.

The record date for the year-end dividends can be determined by resolution of the board of directors, as KT&G has revised its articles of incorporation in accordance with the revision of the Commercial Act, so that shareholders can check the dividend information in advance before making investment decisions.

Decisions on the scale of dividend payouts are made through resolution of the board of directors, and finally approved at the Annual General Meeting of Shareholders. Dividends are paid within one month from the approval date as per relevant regulations.

The company aims to improve market predictability by clarifying its dividend policy and announcing a mid-to-long term target. For 4 years (FY 2024~2027), KT&G is planning to pay about 2.4 trillion in 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.