Investors urge KT&G to spinoff ginseng business

Feb.28.2023

Investors urge KT&G to spinoff ginseng business

Investors demand KT&G split profitable ginseng business, appoint external directors, and improve shareholder return policies.

Several activist investors have filed an injunction with the Daejeon District Court in South Korea, demanding that KT&G address their grievances by spinning off its profitable ginseng business, appointing certain external directors, and strengthening its shareholder return policy.

Investor group led by Singaporean private equity firm Flashlight Capital has repeatedly urged the company to spin off its ginseng business to restore the company's value and stock price.

However, during last month's investor relations event, KT&G refused this request. KT&G Senior Executive Vice President Bang Kyung-man stated, "In the long run, splitting the company has almost no benefit for the company's value or shareholders.

Bang expressed concerns that if the ginseng business department separates, KT&G may lose its "synergy".

During the meeting, KT&G rejected a request from the fund to strengthen KT&G's shareholder return policy. The tobacco manufacturer stated that the current policy "should be temporarily retained.

Lee Sang-hyun, the founder of Flashlight Capital, believes that once KT&G adjusts its investment portfolio to better achieve its environmental, social, and governance goals, its stock price will rebound beyond 140,000 Korean won, which was last seen in 2016.

The stock price of KT&G reached its lowest point on February 17 at KRW 87,100, but has since slightly recovered.

Reference:

Investors are urging KT&G to proceed with the spinoff of their ginseng business.

This document has been generated through artificial intelligence translation and is provided solely for the purposes of industry discourse and learning. Please note that the intellectual property rights of the content belong to the original media source or author. Owing to certain limitations in the translation process, there may be discrepancies between the translated text and the original content. We recommend referring to the original source for complete accuracy. In case of any inaccuracies, we invite you to reach out to us with corrections. If you believe any content has infringed upon your rights, please contact us immediately for its removal.

China Tobacco Regulation Shift：Policy Updates and Market Impact

China Tobacco Regulation Shift：Policy Updates and Market Impact

EVO NXT European Tobacco & NGP Exhibition

EVO NXT European Tobacco & NGP Exhibition

NACS Urges USTR to Address Illegal E-Cigarette Exports in China Trade Engagements

NACS Urges USTR to Address Illegal E-Cigarette Exports in China Trade Engagements

NACS submitted a comment letter to USTR in a proceeding examining unfair trade practices worldwide. The letter focuses on illicit nicotine products made in China and shipped to the United States in violation of U.S. law. NACS said the U.S. electronic nicotine delivery systems market has become dominated by illicit products, mainly disposable e-cigarettes manufactured in China and sold without the marketing authorization required by the U.S. Food and Drug Administration.

Apr.16 by 2FIRSTS.ai

Special Report｜Haypp’s Nicotine Pouch Volumes Rise 40%: Who Controls the Digital Shelf for Modern Oral?

Special Report｜Haypp’s Nicotine Pouch Volumes Rise 40%: Who Controls the Digital Shelf for Modern Oral?

Haypp Group reported a 40% year-on-year increase in nicotine pouch volumes in the first quarter of 2026, with U.S. and U.K. volumes rising 123% and 102%, respectively. Haypp says around 97% of its consumer traffic is organic and that its Media & Insights business provides brand owners with on-site visibility, trial activation and consumer intelligence. For international tobacco companies, Haypp may be both a growth partner for modern oral products and a new source of channel leverage.

Swedish Government Minister Visits Nicotine Pouch Factory, Calls Sector Important Export Industry

Swedish Government Minister Visits Nicotine Pouch Factory, Calls Sector Important Export Industry

Sweden’s Minister for Foreign Trade and Development Cooperation, Benjamin Dousa, visited nicotine pouch producer Another Snus Factory on Monday, calling the sector an important export industry as several European countries tighten regulation of the products.The company produces about 30 million cans of white snus annually and holds roughly 12% of Sweden’s domestic market.

Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process

Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process

Imperial Brands said it will phase out its myblu vaping business in the United States, citing prolonged FDA approval timelines for new vape products. The company said it will instead focus on modern oral nicotine products in the U.S., including the expansion of its Zone brand and new flavors. While overall next-generation product revenue continued to grow, revenue from the category in the Americas declined sharply.

Indonesia to Step Up Vape Surveillance as Concerns Rise Over Drug-Laced E-Cigarettes

Indonesia to Step Up Vape Surveillance as Concerns Rise Over Drug-Laced E-Cigarettes

Indonesia will strengthen surveillance of vapes amid growing concerns over drug-laced e-cigarettes. The National Food and Drug Monitoring Agency, or BPOM, will soon take charge of monitoring nationwide vape distribution and said it will work with the National Narcotics Agency, or BNN. BNN recently floated a plan to completely ban e-cigarettes, saying a total ban was the only way to prevent liquid narcotics.

May.11 by 2FIRSTS.ai

Spanish parties PP and PSOE reach agreement on sales restrictions for e-cigarettes and nicotine pouches

Spanish parties PP and PSOE reach agreement on sales restrictions for e-cigarettes and nicotine pouches

Spain’s Popular Party and Socialist Party reached an agreement in the Joint Congress-Senate Commission for the Study of Addiction Problems and approved a non-binding motion calling for the sale of e-cigarettes, nicotine pouches and related products to be limited to authorized and controlled channels, such as tobacco shops and specialized stores, while excluding internet sales and general retail outlets.

Apr.27 by 2FIRSTS.ai

Related Topics

News

Related Read

NACS Urges USTR to Address Illegal E-Cigarette Exports in China Trade Engagements

NACS Urges USTR to Address Illegal E-Cigarette Exports in China Trade Engagements

Special Report｜Haypp’s Nicotine Pouch Volumes Rise 40%: Who Controls the Digital Shelf for Modern Oral?

Special Report｜Haypp’s Nicotine Pouch Volumes Rise 40%: Who Controls the Digital Shelf for Modern Oral?

Swedish Government Minister Visits Nicotine Pouch Factory, Calls Sector Important Export Industry

Swedish Government Minister Visits Nicotine Pouch Factory, Calls Sector Important Export Industry

Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process

Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process

Indonesia to Step Up Vape Surveillance as Concerns Rise Over Drug-Laced E-Cigarettes

Indonesia to Step Up Vape Surveillance as Concerns Rise Over Drug-Laced E-Cigarettes

Spanish parties PP and PSOE reach agreement on sales restrictions for e-cigarettes and nicotine pouches

Spanish parties PP and PSOE reach agreement on sales restrictions for e-cigarettes and nicotine pouches