KT&G Shareholder Urges Management Reform in Open Letter

Business by 2FIRSTS.ai

Dec.07.2023

KT&G Shareholder Urges Management Reform in Open Letter

KT&G shareholder Flashlight Capital Partners opposes reelection of current CEO Paek Bok-in and demands management reform.

According to a report by South Korean news source Naver on December 7th, KT&G's shareholder Flashlight Capital Partners (FCP) has sent an open letter to the company's board of directors strongly opposing the reappointment of current President Paek Bok-in and demanding reforms in the selection process for senior management personnel.

According to FCP, a company represented by Lee Sang-hyun, since Bai Furen took over as president of KT&G in 2015, although the company's sales have been increasing over the past nine years, its operating profit has consistently declined. Moreover, the company's stock price has continuously decreased during this period and its financial situation is significantly different compared to its industry competitors.

According to financial news reports, despite President Bai Furen's responsibility for the sales growth of KT&G, FCP Company has accused him of consistently underperforming due to the gap in operating profit margins compared to the industry and the continuous decline in stock prices. As a result, FCP opposes his re-election and proposes a new selection principle for the president that is fair, just, and transparent.

Lee Sang-hyun believes that the CEO candidate for KT&G should be open to external candidates, and the board of directors should actively seek and recruit professional managers from the global fast-moving consumer goods (FMCG) industry.

References:

[1] [fn마켓워치]FCP, 백복인 KT&G 사장 연임 반대 압박

Also Read:

[1] KT&G Donates 10 million won to Gwangju City Government for Winter Assistance

[2] KT&G Announces 2.8 Trillion KRW Shareholder Rebate Plan

[3] KT&G Reports Record Q3 Financial Performance in 2023

[4] KT&G Strengthens Shareholder Returns with Higher Stock Price

#Traditional tobacco #Legislation #Asia #Regulation #South Korea

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

Russian Police Seize Over 150,000 Counterfeit E-Cigarettes Worth More Than USD 1.65 Million

Russian police in Tambov have detained a man for storing and selling unmarked e-cigarettes. Over 150,000 counterfeit e-cigarettes, cartridges, and e-liquids were seized, valued at more than 126.5 million rubles (approximately USD 1.65 million). Tests revealed that the nicotine content of the seized products exceeded the levels stated on their packaging. A criminal case has been opened under Article 171.1, Part 6 of the Russian Criminal Code.

Dec.09 by 2FIRSTS.ai

ZYN Rolls Out “X-Low” Campaign in the UK to Target Low-Strength Nicotine Pouch Market

Philip Morris International’s (PMI) nicotine pouch brand ZYN has launched an “X-Low” low-strength campaign in the UK, accelerating its push into the ultra-low nicotine pouch segment, with updated packaging and new flavours already rolled out in both the UK and the Philippines.

Dec.09 by 2FIRSTS.ai

Hounslow Crackdown Seizes £33,000 of Illegal Vapes and Combustible Cigarettes

Hounslow Council’s Trading Standards team, working with Metropolitan Police units, conducted test purchases across the borough and found seven premises selling illegal tobacco. Subsequent raids at 16 premises in Chiswick, Feltham and Hounslow High Street seized 4,859 illegal vapes (≈£30,000), 3,806 combustible cigarettes (≈£3,000), 16kg of shisha and 11kg of chewing tobacco. Offences included oversized tanks, over-strength nicotine, and unregistered products.

Oct.22 by 2FIRSTS.ai

Wisconsin Lawmakers Revive Bill to Raise Legal Age for Tobacco and Vaping Purchases to 21

Wisconsin Senate Bill 524 (SB 524) has been reintroduced to raise the legal purchasing age for tobacco and electronic nicotine products from 18 to 21, aiming to eliminate the gap between state law and the federal “Tobacco 21” standard. Some retailers in Madison have already voluntarily adopted the 21-year age limit, while the American Lung Association is urging swift legislative action.