On March 15, 2024, KT&G Corporation announced that it has responded to the Institutional Shareholder Services Inc recommendation to vote against Company board of directors? proposals, by issuing a letter to both ISS and its shareholders on March 15, 2024, the Company stating that it has observed that it is concerned with the ISS' reliance on the data provided by Flashlight Capital Partners, particularly regarding the company's overseas business performance, which the company believes may not entirely align with its reported financial results, Company believes that ISS' recommendation to vote against the appointment of CEO nominee Kyung-man Bang appears to contradict its own proxy voting guideline, the Company finds ISS' recommendation against Sang-wook Kwak, the Board-endorsed Outside Candidate director candidate who will also serve as an Audit Committee member, lacking a clear reasoning, according to ISS' proxy voting guideline, if a dissident shareholder who owns more than 5% of the company's stock nominates a director, the candidate may not be considered independent, the company expresses its concern over the interactions between ISS and Flashlight Capital, particularly regarding discussions about the company's export business profitability. In addition, the Company stated that it has reviewed data publicized by Flashlight Capital and considered that some discrepancies and inaccuracies are there, Flashlight Capital has claimed that Company's export cigarette business and export Next Generation Product business recorded deficits of KRW 68 billion and KRW 57 billion from 2020 to 2022, respectively, in fact, the company achieved a combined operating profit of KRW 550 billion in export cigarette business and export NGP business during the same period.

Further, the Company stated that ISS on March 14, 2024, that there were sufficient material errors and misinformation in the materials Flashlight Capital provided to ISS, but ISS proceeded to publish its Proxy Research Report, and the Company seeks to address these concerns constructively and is committed to engaging in transparent discussions with all stakeholders, hopes for a careful reconsideration of the recommendations and a dialogue that serves the best interests of all shareholders.