Flashlight Capital Endorses IBK’s Candidate on the Upcoming KT&G AGM

Welcomes the initiative by KT&G’s largest shareholder… anticipates KT&G stock price will serve as the barometer for the success of “Value-Up Program”

SINGAPORE--(BUSINESS WIRE)--Flashlight Capital Partners Pte. Ltd (“Flashlight Capital”), a shareholder of KT&G Corporation (KRX: 033780) (“KT&G” or the “Company”), announced its endorsement of the director candidate proposed by Industrial Bank of Korea (“IBK”), the largest shareholder of KT&G. Flashlight Capital has withdrawn its director candidate from the 2024 AGM agenda.

“We share the same view that KT&G’s governance is in need of urgent repair,” said Sanghyun Lee, Managing Partner of Flashlight Capital. “It doesn’t matter whose candidate gets elected, as long as a truly independent director secures a seat in the boardroom,” Lee commented.

Lee also commented on IBK’s director candidate, Mr. Sohn, Dong-Hwan. “Mr. Sohn has an impeccable record as the legal professional in Korea built over 25 years. We believe Mr. Sohn will have a firm stance against KT&G’s governance issue and implement best practice.”

“We welcome the initiative of IBK as KT&G’s largest shareholder and pledge our full support for their candidate in the upcoming AGM on March 28,” Lee stated. “KT&G stands as a unique case as its largest shareholder, IBK, is a bank 65% owned by Ministry of Economy and Finance, a key force behind “Value-Up” program. Now the Korean government can demonstrate its commitment to eliminating the ‘Korea discount’ through the tangible action. KT&G’s stock price will serve as the barometer for the success of ‘Value-Up’ program.”

Lee also announced that Flashlight Capital will continue its KT&G campaign, including a shareholder webinar scheduled for next week. Further details regarding the webinar will be announced separately.

About Flashlight Capital

Flashlight Capital Partners Pte. Ltd is an investment management firm founded by the Carlyle Group’s former Head of Korea, Sanghyun Lee. Flashlight Capital is dedicated to strengthening corporate governance and enacting transformative change to its portfolio companies, and launched KT&G campaign since 2022. For more information about Flashlight Capital, please visit www.FlashlightCap.com.