KT&G will expand dividend schemes based on share repurchase, continuing growing dividend trend in line with profit

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KT&G (OTC:KTCIY) announced an increase in its interim dividend to 1,400 KRW per share, up 200 KRW from the previous year. The company reported strong first-half results with revenue exceeding 3 trillion KRW, marking the third consecutive quarter of growth. The global cigarette segment achieved five consecutive quarters of triple growth, with revenue up 30.6%, sales volume up 9.1%, and adjusted operating profit up 51.1%.

The company plans to cancel 20% of issued shares between 2024-2027 as part of its shareholder return policy. KT&G has maintained or increased dividends for 26 consecutive years since its 1999 listing, with recent annual dividends growing from 5,000 KRW (2022) to 5,400 KRW (2024).

- Interim dividend raised by 200 KRW to 1,400 KRW—more resources for dividend based on higher profit and fewer outstanding shares

- Major company that has maintained or increased dividend payout annually since listing, highly regarded for strong shareholder return programs

SEOUL, South Korea, Aug. 21, 2025 /PRNewswire/ -- KT&G posted strong results on the 7^th, with first half revenue exceeding 3 trillion KRW and revenue and operating profit recording third consecutive quarter of growth.

Particularly, the global cigarette segment achieved five consecutive quarters of "triple growth" in revenue, operating profit, and sales volume. Revenue, sales volume, and adjusted operating profit each grew 30.6%, 9.1%, and 51.1% respectively, continuing the high-growth momentum.

Furthermore, KT&G resolved to raise the interim dividend by 200 KRW to 1,400 KRW per share. Through the Q2 earnings report session, the company stated that it would reflect the dividend growth trend in its shareholder return program based on a comprehensive review of share repurchases & cancellation, profit growth, share prices, and other factors.

Since its initial listing in 1999, KT&G has continued dividend payout for 26 consecutive years, either maintaining or increasing the amount every year. The recent three year's dividend per share trend is also a continuously growing one, with 5,000 KRW in 2022, 5,200 KRW in 2023, and 5,400 KRW in 2024.

KT&G has yet again announced a raise in the interim dividend through the Q2 earnings report session, stating that it will continue to reflect the growth trend in its dividend policy.

During the Q2 earnings report session held on the 7^th, KT&G CFO Sang-Hak Lee stated that "the board resolved to raise the interim dividend by 200 KRW to 1,400 KRW—from 1,200 KRW last year—based on steady first half results," further stating "we will continue to make room for dividend growth through share repurchases and positively consider dividend payout linked to stock-price growth." He went on to further emphasize that "to the greatest extent possible, KT&G will reflect the dividend growth trend in its dividend policies considering Q3, Q4, and annual profit growth trends."

Between 2024 to 2027, KT&G is implementing bold shareholder return policies to cancel 20% of issued shares (including newly repurchased shares). Accordingly, the number of outstanding shares continues to decline while the total annual dividend payout remains around 580 to 590 billion KRW, creating more room for per-share dividend growth. 

KT&G also announced its Double-Digit annual operating growth target during the earnings report session. Considering the decrease in dividend yield due to growing stock prices, the possibility of increased annual dividend per share is getting higher.

The finance sector also foresees a sharp rise in dividends regarding KT&G's growing dividend trends.

Through the report "Robust 2Q25; Higher dividend upside", Morgan Stanley analyst Kelly Kim projected that "as the management is taking dividend yield and rising earnings into consideration, we think there could be even further upside to our DPS assumption (W5,800)." (EoD)

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SOURCE KT&G Corporation

FAQ

What is KT&G's new interim dividend for 2025?

KT&G increased its interim dividend by 200 KRW to 1,400 KRW per share, up from 1,200 KRW in the previous year.

How has KTCIY's dividend payout history performed since listing?

KT&G has maintained or increased its dividend payout for 26 consecutive years since its initial listing in 1999, demonstrating a consistent track record of shareholder returns.

What are KT&G's share repurchase plans for 2024-2027?

KT&G plans to cancel 20% of issued shares (including newly repurchased shares) between 2024 and 2027 as part of its shareholder return policy.

What was KTCIY's global cigarette segment performance in Q2 2025?

The global cigarette segment achieved five consecutive quarters of triple growth with revenue up 30.6%, sales volume up 9.1%, and adjusted operating profit up 51.1%.

What is KT&G's recent dividend trend from 2022 to 2024?

KT&G's dividend per share has shown continuous growth: 5,000 KRW in 2022, 5,200 KRW in 2023, and 5,400 KRW in 2024.