FCP Assesses KT&G CEO’s First-Year Performance

Releases Video on KT&G Blocking Shareholders Questions During IR Call

SINGAPORE--(BUSINESS WIRE)--Flashlight Capital Partners Pte. Ltd. (“Flashlight Capital”), a shareholder of KT&G Corporation (KRX: 033780) (“KT&G”), has sent a letter to CEO Kyung-Man Bang, evaluating his first year in office.

In the letter, Flashlight Capital assigned CEO Bang a performance score of 38 out of 100, matching the 38% approval rate he received during his election last March—excluding votes from the foundations that received treasury shares donated by KT&G and etc. The full letter to CEO Bang can be found here: (https://flashlightcap.com/wp-content/uploads/2025/03/Letter-to-CEO-Mar-2025.pdf).

“Since CEO Bang’s appointment in March 2024, the stock price of KT&G, the world’s fifth-largest tobacco company, has increased by only 5%—significantly lagging behind the 35% average increase recorded by the top four industry players during the same period,” said Sanghyun Lee, Managing Partner of Flashlight Capital. “KT&G is currently trading below 4x EBITDA, while its peers are valued at 10x EBITDA. Unsurprisingly, CEO Bang has remained completely silent on KT&G’s valuation.”

In its letter, Flashlight Capital evaluated CEO Bang using five key criteria: (a) stock performance, (b) understanding of stock valuation, (c) management entrenchment, (d) business strategy, and (e) transparency. CEO Bang failed in all five categories. Particularly concerning was KT&G’s blatant suppression of shareholder questions during the most recent quarterly IR call. Flashlight Capital has released a shocking video capturing the moment KT&G actively blocked shareholder inquiries. The video can be found (https://youtu.be/-DlzEVkVr3o).

“As the stock price continues to stagnate, CEO Bang refuses to attend quarterly IR calls, instead sending a stand-in with even less knowledge,” said Sanghyun. “While shunning shareholders in public, he privately meets with select investors, seemingly attempting a ‘divide and conquer’ strategy. A CEO who refuses to engage honestly with shareholders has no place leading a publicly listed company.”

Sanghyun predicted that, despite Flashlight Capital’s critical assessment, the KT&G Board will likely award CEO Bang a high performance rating—just as they did with former CEO Baek—using vague and ambiguous criteria such as ‘Group Infra Innovation’ and ‘ESG Sophistication’. “Shareholders are watching,” he warned in his closing remarks.

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. For more information about Flashlight Capital, please visit www.FlashlightCap.com and YouTube channel (https://www.youtube.com/@flashlightcapitalpartners7001).