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

Australia’s Tobacco Tax Debate Intensifies as One Nation’s Barnaby Joyce Warns of Illicit Market Growth
Australia’s Tobacco Tax Debate Intensifies as One Nation’s Barnaby Joyce Warns of Illicit Market Growth
Australian One Nation MP Barnaby Joyce has criticised continued tobacco excise increases, arguing that higher taxes are driving consumers toward illicit tobacco markets and benefiting organised crime groups.
Regulations
Jul.13 by 2Firsts Perspectives
FDA 2025 NYTS: Youth E-Cigarette Use Declines but Unauthorized Disposables Remain Prominent; Nicotine Pouch Use Stays Low
FDA 2025 NYTS: Youth E-Cigarette Use Declines but Unauthorized Disposables Remain Prominent; Nicotine Pouch Use Stays Low
The U.S. Food and Drug Administration (FDA) released its 2025 National Youth Tobacco Survey analysis, saying about 2.01 million U.S. middle and high school students currently used any tobacco product; among current youth e-cigarette users, unauthorized disposable brands including Geek Bar, Elf Bar, Lost Mary and Raz had high reported shares, potentially making them a focus for future enforcement.
Jun.24
BP, Marathon and Valero Warn U.S. Gas-Station Stores: Illegal Vape Sales Could Bring Heavy Fines and Card-Processing Limits
BP, Marathon and Valero Warn U.S. Gas-Station Stores: Illegal Vape Sales Could Bring Heavy Fines and Card-Processing Limits
Fiserv and service station operators including BP, Marathon Petroleum and Valero have warned U.S. partners and gas-station convenience-store owners that selling illegal vapes could lead to heavy fines, breach brand agreements and even put stores’ card-processing access at risk, according to Reuters.
Regulations
Jul.07 by 2Firsts Perspectives
 Zyn Emerges as MAGA Cultural Symbol Amid FDA Policy Shift
Zyn Emerges as MAGA Cultural Symbol Amid FDA Policy Shift
According to The Wall Street Journal, nicotine pouch brand Zyn has rapidly gained popularity across the Trump administration and conservative political circles, including among U.S. Health Secretary Robert F. Kennedy Jr.
Business
May.20
Product | JT Upgrades with2 Infused Tobacco Capsules With Double-Size BIG PACK
Product | JT Upgrades with2 Infused Tobacco Capsules With Double-Size BIG PACK
Japan Tobacco Inc. (JT) announced that it will introduce a BIG PACK version of all five tobacco capsule variants designed for its with2 infused tobacco system. Scheduled for release in Japan on August 4, 2026, the refreshed packaging doubles the contents from five capsules and one cartridge to ten capsules and two cartridges while maintaining the same flavors and formulations
News
Jun.26 by 2Firsts Perspectives
BofA: U.S. Nicotine Market Splits as Vapor Sales Fall 17.2% and Oral Tobacco Rises 5.8%
BofA: U.S. Nicotine Market Splits as Vapor Sales Fall 17.2% and Oral Tobacco Rises 5.8%
According to Investing.com citing Bank of America scanner data for the four weeks ending May 30, U.S. nicotine category performance was mixed, with cigarette, vapor and cigar sales declining while oral tobacco sales rose 5.8%.
Jun.10