KT&G has reached a historic stock valuation milestone, climbing over 50% this year to peak at ₩144,000 ($104) per share on July 14, fueled by its aggressive global expansion, strategic share buybacks, and investor-friendly dividend policies. The tobacco and e-cigarette giant’s ascent aligns with new economic policies under President Lee Jae Myung, which have improved market sentiment and promoted private-sector investment.
The company’s shareholder return program has been a major draw, boasting a dividend payout ratio exceeding 50%, which is well above industry norms, and a recent ₩360 billion buyback of 2.5% of its outstanding shares. A second round of buybacks is planned for later this year. Analysts cite this approach as a stabilizing and confidence-building move, especially in contrast to earlier volatility during the pandemic-driven investment surge of 2021.
KT&G is also poised to benefit from South Korea’s ₩13 trillion in consumer stimulus coupons, which are usable at convenience stores—a key sales channel for its e-cigarette brands. KB Securities revised its domestic e-cigarette growth forecast sharply upward from –6.6% to +6%, citing the likely consumption boost from the government program.
On the global front, KT&G continues to ramp up international output. Overseas operating profit soared by 312% in Q1 alone, supported by recent facility expansions in Kazakhstan and Turkey.
