Top Takeaways:

• KT&G stock soared over 50% this year, peaking at ₩144,000 (US $104) on July 14, up from ₩87,300, driven by global expansion and generous shareholder returns.
• The company has committed to strong shareholder-friendly policies, including a dividend payout ratio exceeding 50% and a ₩360 billion buyback of 2.5% of shares, with plans for another round later this year.
  The Korea Times
• A major boost came from overseas tobacco operations, where Q1 overseas operating profit surged 312% year-over-year, supported by new production plants in Kazakhstan and Turkey.

South Korea’s leading tobacco and nicotine products company, KT&G, reached a record stock valuation this month, with shares peaking at ₩144,000 on July 14—an increase of over 50% from its lows earlier in the year.

KT&G attributes the surge to a mix of aggressive global expansion and shareholder-friendly financial policies. Its dividend payout ratio exceeds 50%, well above the industry norm, and earlier this year the company repurchased ₩360 billion worth of shares—approximately 2.5% of its outstanding stock. A second buyback is planned for later in 2025.

CEO Bang Kyung-man pointed to positive momentum under the recent presidential administration of Lee Jae Myung, which has promoted policies that boost investor confidence and private-sector growth.

Fueling investor enthusiasm further was an explosive performance in international markets. In Q1 2025, KT&G’s overseas cigarette division posted a staggering 312% year-over-year increase in operating profit, supported by a 54% rise in overseas revenue. The gains coincided with the opening of new facilities in Kazakhstan in April and expanded capacity in Turkey.

Domestically, e-cigarette growth is also expected to accelerate thanks to South Korea’s ₩13 trillion consumer stimulus coupon scheme, which analysts believe will lift demand at convenience stores—the primary sales channel for KT&G’s modern nicotine products. KB Securities raised its forecast for the domestic e-cigarette market from a 6.6% decline to 6% growth.

KT&G’s first-quarter financials reflect the strong performance: consolidated revenue reached ₩1.491 trillion (up 15.4% year-over-year) and operating profit totaled ₩285.6 billion (20.7% increase). Adjusted operating profit rose 45.1% after excluding one-off restructuring costs.

The company’s global cigarette business continues to drive growth. In Q1, global cigarette volume grew 23%, revenue rose 53.9%, and operating profit exploded by 312.5%.