KT&G CEO Appointment Uncertainty: Largest Shareholder Opposing

News by 2FIRSTS.ai
Mar.04.2024
KT&G CEO Appointment Uncertainty: Largest Shareholder Opposing
KT&G shareholders to vote on CEO nominee amid controversy over performance and shareholder dissent. Uncertainty looms over appointment.

According to South Korean media Koreatimes on March 1st, shareholders of KT&G are expected to vote later this month on the appointment of a new CEO candidate. The largest shareholder is opposed to the appointment, claiming that the candidate should be held responsible for the company's stagnant performance in recent years.

 

On February 22nd, the company appointed Senior Executive Vice President Bang Kyung-man as the final candidate for the position of Chief Executive Officer.

 

However, KT&G's largest shareholder, Industrial Bank of Korea (IBK), has decided to vote against Fang Jingman's appointment at the shareholders' meeting scheduled for March 28. In addition, the activist hedge fund Flashlight Capital Partners (FCP) has raised questions about the nomination process, creating uncertainty about whether Bang will be appointed as CEO at the meeting.

 

IBK, which holds a 6.93% stake in KT&G, recently stated that there are issues with the process of selecting nominees. An executive at IBK added that since the nominee for CEO was appointed as a senior executive vice president, the company's operating profit has decreased by over 20%.

 

The National Pension Service (NPS), which owns a 6.31% stake, is also expected to decide on the appointment of the CEO candidate at the shareholders' meeting on March 28.

 

In response to opposition regarding the appointment of the CEO candidate, KT&G stated that the selection process for the new CEO was conducted fairly, including the first time in 20 years that a candidate was chosen from outside the company. The CEO nominee also meets the criteria set by the company for the new chief executive officer.

 

The entire CEO appointment process has been conducted and guided by an independent external board committee. In addition, public recruitment is considered as one of the channels to form a pool of CEO candidates, providing a fair assessment opportunity for both internal and external candidates. Without the establishment of an advisory group composed of external experts, the fairness and objectivity of the appointment process have been ensured through the committee's impartial and objective viewpoints being taken into account.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Belgium Approves Vape Flavor Ban, Allowing Only Tobacco-Flavored and Unflavored Products From September 2028
Belgium Approves Vape Flavor Ban, Allowing Only Tobacco-Flavored and Unflavored Products From September 2028
Belgium’s federal government on Thursday approved a ban on flavored vapes, allowing only tobacco-flavored and unflavored e-cigarettes on the market from September 2028. Health Minister Frank Vandenbroucke said the measure is aimed at protecting the health of children and young people and preventing a new generation from becoming dependent on tobacco.
May.06 by 2FIRSTS.ai
Acting CTP Director Says FDA Cut Premarket Tobacco Application Backlog by About 70% Over the Past Year
Acting CTP Director Says FDA Cut Premarket Tobacco Application Backlog by About 70% Over the Past Year
FDA Center for Tobacco Products Acting Director Bret Koplow said at the American Tobacco and Nicotine Forum that the agency has reduced its premarket tobacco application backlog by about 70% over the past year and eliminated the acceptance queue. He said FDA has reviewed about 27 million applications, but only a small number have been authorized, mainly because most submissions lacked the scientific data needed to demonstrate public health benefits.
Apr.23 by 2FIRSTS.ai
Exclusive | TPE 2026 Cools as Caution Deepens in the U.S. Vape Market
Exclusive | TPE 2026 Cools as Caution Deepens in the U.S. Vape Market
The show had become an important check-in point for Chinese manufacturers and brand owners looking for signs of change in the U.S. market after months of softer demand. Instead, participants said the event highlighted a more restrained mood: traffic in the vape section was uneven, standout launches were limited, and conversations often failed to turn into orders.
Special Report
Apr.12
New Movement Emerges on EU Tobacco Excise Directive as Cyprus Tables Compromise Draft
New Movement Emerges on EU Tobacco Excise Directive as Cyprus Tables Compromise Draft
The long-stalled debate over the European Union’s Tobacco Excise Directive may be moving forward, with Cyprus, as holder of the EU Council presidency, putting forward a compromise draft. The reported proposal includes lowering the minimum excise duty requirement and granting a transitional period, with the aim of reaching political agreement by June 2026. The revision also covers e-cigarettes, heated tobacco, nicotine pouches and stronger controls on raw tobacco.
Apr.21 by 2FIRSTS.ai
 BAT Raises Growth Outlook for Smokeless Products as Velo and Vuse Gain Momentum
BAT Raises Growth Outlook for Smokeless Products as Velo and Vuse Gain Momentum
British American Tobacco (BAT) has raised its growth outlook for smokeless products, forecasting “mid-teens” growth for its new category portfolio, including vaping and nicotine pouch products, while global cigarette volumes are expected to decline further.
BAT
Jun.02
Russian Public Group Seeks Website Restrictions on Remote Vape and Nicotine Sales
Russian Public Group Seeks Website Restrictions on Remote Vape and Nicotine Sales
Russian public movement “Healthy Fatherland,” has proposed blocking access in Russia to online resources that sell vapes and nicotine-containing products remotely.
Apr.15 by 2FIRSTS.ai