KT&G stock draws focus after record Q3 and KRW 5 trillion plan

KT&G reported record third-quarter revenue and operating profit on November 5, 2026, while presenting a new shareholder-return plan at its Capital Markets Day. According to PR Newswire, consolidated revenue rose 4.3 percent year over year to KRW 1.9052 trillion, while operating profit increased 13.9 percent to KRW 530.1 billion.

Record quarter supports new targets

The cigarette business delivered quarterly revenue of KRW 1.3065 trillion and operating profit of KRW 425.5 billion. Its operating margin reached 32.6 percent, supported by growth in the global cigarette business and a stronger product mix.

KT&G plans to raise its 2026 annual dividend to KRW 8,000 per share, an increase of KRW 2,000 from the previous year. The company also targets a dividend payout ratio of at least 75 percent by 2030 and plans KRW 1.2 trillion of share repurchases and cancellations over the four years from 2027 to 2030.

International expansion remains central

The company expects 2026 group revenue of KRW 7 trillion and operating profit of KRW 1.5 trillion. Management plans to expand overseas cigarettes, next-generation products and health functional foods, while improving pricing, premium product penetration and production efficiency.

KT&G also targets cumulative cost savings of more than KRW 550 billion over the next four years. Its 2030 goals include generating at least 70 percent of cigarette revenue globally, lifting next-generation products to at least 30 percent of cigarette revenue and raising the global share of health functional foods revenue to at least 30 percent.

KT&G business profile

KT&G operates businesses in cigarettes, next-generation nicotine products and health functional foods. Its health functional foods business includes Korea Ginseng Corporation and the JungKwanJang brand, while its overseas operations cover cigarette markets in 140 countries and next-generation products in 34 countries, according to the KT&G corporate website.

The company is increasing local operations, expanding its production network and developing brands such as ESSE and LOOP. Its strategy combines international tobacco growth with next-generation products and the expansion of red ginseng ingredients and products.

KT&G operates within the South Korean equity market, covered through South Korean market reports.

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