The KT&G Board of Directors convened on the 7th and amended the board regulations following in-depth discussions on the selection process for the next president. The amendments include removing the provision that allowed priority review for the current president in case of expressed interest in reappointment.

The verification process for KT&G's presidential candidates involves a three-tiered approach: the 'Governance Committee - Presidential Candidate Recommendation Committee - Board of Directors.'

The Governance Committee, a standing committee, is responsible for proposing criteria for evaluating presidential candidates, forming a pool of potential candidates, and searching for and recommending candidates for evaluation. Based on this, the ad hoc Presidential Candidate Recommendation Committee conducts a systematic and in-depth assessment of the candidates under review and selects the final candidates to be recommended to the Board of Directors. Following the Board's selection of candidates and resolution to present the matter at the shareholders' meeting, the final appointment of the president is determined at the shareholders' meeting, reflecting the collective will of all shareholders. Both the Governance Committee and the Presidential Candidate Recommendation Committee are exclusively composed of independent directors independent from the management team.

Lim Min-gyu, Chairman of the KT&G Board of Directors, stated, "We have recently amended the board regulations to enhance the fairness and transparency of the presidential appointment process. The process will proceed under proper procedures, including convening the Governance Committee in December. We plan to disclose information as the related procedures progress transparently."