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.

 

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

F1 Faces Renewed Pressure Over Tobacco and Nicotine Sponsorships as 67 Groups Target ZYN and VELO Ahead of Madrid Race
F1 Faces Renewed Pressure Over Tobacco and Nicotine Sponsorships as 67 Groups Target ZYN and VELO Ahead of Madrid Race
Ahead of the Formula 1 race in Madrid, 67 Spanish and international public-health, medical and consumer organizations have sent an open letter to F1 President and CEO Stefano Domenicali calling for an end to sponsorships linked to the tobacco and nicotine industry, including nicotine pouches, vaping products and heated tobacco. The letter focuses on Philip Morris International’s ZYN partnership with Ferrari and British American Tobacco’s long-running partnership with McLaren and exposure for VELO. The campaign follows a March letter in which more than 160 organizations worldwide made a similar request to Formula 1.
Sep.10
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
Key provisions of the UK's Tobacco and Vapes Act 2026 will take effect on Oct. 29, extending an age-18 sales restriction to all vaping and non-medicinal nicotine products. In England, Wales and Northern Ireland, the change brings zero-nicotine vapes within statutory age-of-sale rules and also covers products including nicotine pouches, strips and pearls. The law will also prohibit proxy purchasing for under-18s, consumer-facing vending machines, promotional giveaways and substantial discounts intended to promote vaping and nicotine products.
Regulations
Oct.10
R.J. Reynolds Vapor Company Launches Flavored Vuse Pro Pods in U.S. Without FDA Marketing Authorization
R.J. Reynolds Vapor Company Launches Flavored Vuse Pro Pods in U.S. Without FDA Marketing Authorization
R.J. Reynolds Vapor Company has begun selling four flavored Vuse Pro pods — Peach, Berry, Watermelon and Fresh Mint — in Ohio and selected other U.S. markets. According to the Vuse U.S. FAQ, Vuse Pro contains approximately 5.0% nicotine by weight, and Vuse Pro pre-filled pods are intended for use with Vuse Alto devices. Reynolds told 2Firsts that product labeling lists an e-liquid capacity of 2.0 mL per pod. The Vuse Alto Power Unit received FDA marketing authorization in 2024, while the new Vuse Pro pods themselves have not received marketing granted orders. The rollout follows the FDA’s May 2026 revision of enforcement priorities for certain unauthorized vaping products with qualifying pending applications.
BAT
Sep.10
Malaysia Liquid Nicotine Returns to Poisons List, Leaving Vape Retail and RM354 Million Tax Collection in Legal Uncertainty
Malaysia Liquid Nicotine Returns to Poisons List, Leaving Vape Retail and RM354 Million Tax Collection in Legal Uncertainty
Malaysia’s withdrawal of its appeal in a landmark liquid-nicotine case has left a High Court ruling that struck down the 2023 nicotine exemption in force, bringing liquid and gel nicotine used in vaping products back under the Poisons Act 1952. At the same time, the Control of Smoking Products for Public Health Act 2024 continues to provide a regulatory framework for vaping products, creating uncertainty over retail sales, taxation and existing inventory. MPs are calling for nicotine vape sales and excise collection to stop, including refunds of more than RM354 million collected since 2023, while industry and consumer groups are asking the government to clarify the current legal position.
Sep.04
India Duty-Free Nicotine Pouch Sales Face Regulatory Test as ZYN, FOX Classification Remains Open
India Duty-Free Nicotine Pouch Sales Face Regulatory Test as ZYN, FOX Classification Remains Open
The Bombay High Court has ruled that airport duty-free shops are not exempt from India's domestic regulatory laws merely because they operate beyond the customs barrier, leaving in place a sales halt covering ZYN and FOX nicotine pouches at Mumbai's international airport. The court, however, did not determine that the products necessarily qualify as "drugs" under India's Drugs and Cosmetics Act. The retailers have four weeks to submit product information to the appropriate authorities, including CDSCO, which must complete its review within 30 days of receiving the submissions.
Sep.24
From Vuse, Velo and glo to AI Consulting: Former BAT Content Lead Launches Destreza
From Vuse, Velo and glo to AI Consulting: Former BAT Content Lead Launches Destreza
Former BAT global content lead Andy Parton has left the company and launched Destreza, a London-based AI-native marketing consultancy. Parton previously worked across BAT's New Category brands Vuse, Velo and glo and had also served as Global Brand Lead for Vuse Go. Destreza says it will advise consumer businesses on AI in brand strategy, operating models, capability and agency configuration, using specialist AI agents to support research, strategy and creative development. BAT reported £3.621 billion in New Category revenue in 2025.
Sep.22