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Flashlight Capital Partners Thanks Shareholders for its Victory
[March 28, 2024]

Flashlight Capital Partners Thanks Shareholders for its Victory

Flashlight Capital Partners Pte. Ltd ("Flashlight Capital"), a significant shareholder of KT&G Corporation (KRX: 033780) ("KT&G" or the "Company"), today announced the successful appointment of an independent board director to KT&G, a move aimed at enhancing governance and shareholder value.

"We view this appointment as a victory for all shareholders, irrespective of size or nationality," remarked Sanghyun Lee, Managing Partner of Flashlight Capital. "With the addition of a truly independent director committed to advancing shareholder interests, KT&G has taken a crucial step towards governance normalization," Lee commented.

In a letter addressed to KT&G's new board of directors, Lee outlined five top-priority action steps aimed at driving positive change, asking for a concrete action in the next three months:

  • Link Compensation to Performance: Link the compensation of CEO and other board members to the stock price to align incentives with shareholder value creation.
  • Enhance Accounting Transparency: Disclose overseas profitability and launch immediate investigtions into illicit tobacco risks, as well as the underperformance of KT&G's HNB product, lil, in the Japanese market.
  • Prevent Illegal Treasury Share Giveaway: Prevent former CEOs from exerting undue influence as large shareholders behind the scenes.
  • Globalize Ginseng Business: Recruit a proven global marketing expert as the new CEO to drive the global expansion of ginseng business.
  • Stop Asset Management Business: Cease the practice of investing excess cash in real estate and private equity funds; KT&G is not an asset management company.

"With the appointment of the new board of directors, especially Mr. Shon," Lee remarked, "we are optimistic that KT&G's future will be characterized by increased transparency and improved governance standards. We hope that Mr. Shon will set a precedent for governance improvement in Korea."

Flashlight Capital remains committed to working collaboratively with KT&G's management and board of directors to drive sustainable value creation and enhance shareholder returns.

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

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