KT&G Announces Future Vision Ceremony
Plans to Invest 4 Trillion Won in Core Business Areas Over 5 Years
Actively Promoting KGC Ginseng Corporation's Health Functional Food Business
President Baek Bok-in (center front row) and KT&G executives and employees are posing for a commemorative photo. Photo by KT&G
KT&G has unveiled its group goals and blueprint aimed at becoming a global ‘Top-Tier’ company, targeting sales in the 10 trillion KRW range by 2027.
According to KT&G on the 27th, President Baek In-bok revealed the ‘2027 KT&G Vision’ at an event held at Sangsang Planet on the 26th, presenting a growth strategy centered on three core business pillars: NGP (Next Generation Products), health functional foods, and global CC (cigarette tobacco).
KT&G plans to foster NGP and health functional foods as the company’s core growth businesses through a virtuous cycle business portfolio direction that reinvests resources generated from investments in its main businesses into nurturing growth sectors.
Based on approximately 4 trillion KRW of growth investments in core business areas over the next five years, the company aims to achieve sales in the 10 trillion KRW range by 2027, increase the proportion of global business sales to 50%, and raise the sales share of NGP and health functional foods to over 60% through qualitative business growth.
In particular, KT&G will prioritize the global expansion of the rapidly growing NGP business, focusing on securing more advanced innovative technology capabilities and expanding global production capacity.
Additionally, KT&G will actively nurture the health functional foods business of KGC Ginseng Corporation, which holds a dominant competitive edge domestically, as a core growth engine and pursue a two-track overseas market strategy centered on the United States and China.
Through this, the company plans to achieve sales exceeding 2 trillion KRW each in the NGP and health functional foods businesses by 2027. It also intends to actively seek synergy opportunities between the health functional foods and pharmaceutical industries to maximize business performance.
Meanwhile, KT&G held an online investor relations meeting to communicate openly with shareholders and capital market stakeholders. Currently, KT&G has been faithfully executing a three-year shareholder return plan worth approximately 2.75 trillion KRW since 2021, and this year’s dividend per share is expected to increase by 200 KRW from the previous year to 5,000 KRW.
Under the three-year shareholder return plan, KT&G plans shareholder returns totaling about 900 billion KRW in 2023, including 300 billion KRW for share repurchases and 600 billion KRW for dividend payments. Semi-annual dividends will also be introduced.
Furthermore, KT&G plans to maintain a continuous upward trend in dividends per share after 2024 while pursuing an expanded shareholder return policy. Specific details will be disclosed in the second half of this year.
A KT&G official stated, "KT&G has strongly accelerated the global growth of its core businesses, setting new annual sales records for the past five years," adding, "We will quickly seize opportunities in the global market and become a global Top-Tier company through aggressive investment and innovation to realize even greater future growth potential."
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