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

Reynolds American launches U.S. investment plan: to invest $3.2 billion to expand capacity and advance a shift toward smokeless products
Reynolds American launches U.S. investment plan: to invest $3.2 billion to expand capacity and advance a shift toward smokeless products
Reynolds American says it will invest more than $3.2 billion across its U.S. operations by 2030. The investment began in 2024 and is expected to support more than 2,000 direct and indirect jobs. The company says the plan covers modernization and expansion of manufacturing facilities, scaling innovation and production, supply-chain initiatives and employee training, and also references its R&D spending and related site footprint.
Mar.06 by 2FIRSTS.ai
Philip Morris Japan Unveils TEREA “Blossom Pearl” for IQOS ILUMA
Philip Morris Japan Unveils TEREA “Blossom Pearl” for IQOS ILUMA
Philip Morris Japan announced that it will launch “TEREA Blossom Pearl,” a new tobacco stick for IQOS ILUMA, on May 11. The new product will expand the TEREA lineup to 27 variants. It features a capsule menthol flavor with strawberry and subtle herbal notes and is priced at JPY 620, or about USD 4.14 based on an assumed rate of 1 JPY = 0.00668 USD. The exchange-rate source should be verified and added.
Apr.28 by 2FIRSTS.ai
Belarus Official Says Full Vape Ban Is Not Advisable Due to Supply Risks From Russia
Belarus Official Says Full Vape Ban Is Not Advisable Due to Supply Risks From Russia
A Belarusian Interior Ministry official said on March 18 at a press conference on preventing dependence on electronic smoking systems that a full ban on vapes is not appropriate in Belarus at this stage.
Mar.19 by 2FIRSTS.ai
Fontem Drops Texas Lawsuit and Plans to Refile in D.C. Over FDA Handling of Zone Application
Fontem Drops Texas Lawsuit and Plans to Refile in D.C. Over FDA Handling of Zone Application
Fontem US, the maker and seller of Zone nicotine pouches, has voluntarily dismissed its lawsuit against the U.S. Food and Drug Administration, which it had accused of unfairly delaying its market application.
Mar.25 by 2FIRSTS.ai
IMF Article Sets Out Three Principles: Cover All Harmful Products, Match Tax Rates to Harm, Improve Cross-Border Coordination
IMF Article Sets Out Three Principles: Cover All Harmful Products, Match Tax Rates to Harm, Improve Cross-Border Coordination
A March 2026 article in Finance & Development, “Taxing Harmful Habits,” argues that taxes on harmful products such as tobacco, alcohol and sugary drinks should better reflect the health harm they cause. The authors propose three principles: capture all harmful products, align tax rates with health harm, and strengthen cross-border coordination to reduce evasion and smuggling.
Mar.24 by 2FIRSTS.ai
Azerbaijan Cancels E-Cigarette State Standard as Full Vape Ban Takes Effect on April 1
Azerbaijan Cancels E-Cigarette State Standard as Full Vape Ban Takes Effect on April 1
The Azerbaijan Institute of Standardization (AZSTAND) has announced the cancellation of state standard AZS 941:2023, “Electronic Cigarettes. General Technical Specifications.”Under legal amendments adopted on December 30, 2025, Azerbaijan has prohibited from April 1, 2026 the import, export, manufacture, storage, wholesale and retail sale, and use of e-cigarettes and their components.
Apr.07 by 2FIRSTS.ai