November 29, 2024

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The corporate logo of KT&G (KT&G)

South Korean tobacco company KT&G said Friday it plans to buy back 350 billion won ($245.1 million) of its own shares in a bid to boost shareholder returns.

The firm is also considering increasing dividends per share by more than 200 won compared to last year.

It is the second share buyback since last year when the company bought back 350 billion won of its shares and paid dividends of some 576 billion won to shareholders.

In November 2021, the company announced it would carry out a shareholder return package worth 2.8 trillion won over the next three years, including a 1.8 trillion won dividends payout.

In the third quarter, KT&G recorded record-high sales of 1.6 trillion won, an 8.5 percent increase compared to last year, mostly driven by growth in noncombustible cigarette sales and overseas business.

“We plan to take a leap forward as a global leading company based on the heated tobacco and health supplement business including ginseng, ESG and compliance management,” said Bang Kyung-man, general director at KT&G.

KT&G exports cigarette products to 124 countries as of last year, and currently operates global headquarters in the US, China, Russia, Turkey, Taiwan and Indonesia.

By Byun Hye-jin (hyejin2@heraldcorp.com)