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KT&G announced its plans for additional shareholder returns and growth targets for this year. The company also signed a memorandum of understanding (MOU) with top-tier U.S. tobacco manufacturer Altria, which was disclosed during 2025 KT&G CEO Investor Day on September 23. At the investor briefing, KT&G President Bang Kyung-man introduced an upgraded “Shareholder Return Distribution Principle” to efficiently allocate future excess capital, maximizing both corporate and shareholder value. Specific initiatives include maintaining a total shareholder return ratio of 100% or higher, sustaining a dividend payout ratio of 50% or more, setting a minimum dividend yield threshold, and conducting flexible treasury share repurchases throughout the year if the stock price is deemed to be undervalued relative to its long-term intrinsic value. Additional shareholder returns, contingent on cash revenue creation, will be pursued in balance with treasury share repurchases to reflect the company’s ongoing dividend expansion policy. The minimum annual dividend per share for 2025 has been set at ₩6,000, up ₩600 from the previous year. Using funds generated from the liquidation of non-core assets such as real estate, KT&G will carry out additional share buybacks and cancellations totaling 260 billion won starting September 24. This represents a 100-billion-won increase compared to last year’s buybacks, and when combined with the dividend increase, results in a total of 276 billion won in additional shareholder returns, a 171% year-on-year increase. As of the end of 2023, KT&G completed the cancellation of treasury shares amounting to 10.4% of its total issued shares. With the new buybacks and cancellations, the cumulative cancellation ratio is expected to rise further. Speaking on the foundation for strengthening shareholder returns, KT&G cited the successful establishment of a globally-integrated, local end-to-end value chain—pursued since the company's president Bang Kyung-man assumed office in March 2023—and the stabilization of overseas business on a growth trajectory. Based on second-quarter results, the overseas cigarette division achieved 3x growth for five consecutive quarters, with increases in sales, operating profit, and sales volume. Adjusted operating profit for the first half of 2025 rose 127.8% year-on-year, showcasing strong momentum. President Bang emphasized that qualitative growth is being achieved in the overseas business through strategic export price increases and a higher share of premium products, adding that cost reductions from the global production system transition will enhance long-term profitability. KT&G targets double-digit growth in both operating profit and sales for 2025 and plans to strengthen direct communication with shareholders, investors, and the capital market through initiatives such as CEO Investor Day. Prior to the briefing, President Bang signed a comprehensive MOU with Billy Gifford, CEO of the top-tier global tobacco manufacturer Altria, thus establishing a strategic cooperation framework in global nicotine and non-nicotine markets. KT&G and Altria agreed to jointly acquire Another Snus Factory (ASF), a Nordic nicotine pouch company, to enter the rapidly growing global nicotine pouch market. They will also introduce ASF’s “LOOP” and Altria’s “on!” through KT&G’s global distribution network to expand their nicotine pouch sales portfolio and solidify their market positions, with detailed operational plans to be finalized later. To enhance market competitiveness, the companies plan to explore ways to streamline cigarette business operations and pursue mutually beneficial collaboration for portfolio diversification. Regarding the health-functional-food business operated by KGC Ginseng Corporation, the companies will also jointly explore opportunities in the U.S. market, leveraging KGC’s product expertise and Altria’s American consumer insights and distribution channels to increase market penetration. A KT&G representative stated, “We are striving for high dividends as well as additional share buybacks and cancellations thanks to profits generated by the rapid growth of our global business. Through our MOU with Altria, we aim to expand our core business portfolio and give ourselves a greater competitive edge in terms of future growth."