Focus

9 Non-core Businesses

Below is the list of 9 non-core businesses (industry / KT&G’s ownership % / 2021 net income).

Yungjin Pharm (listed): Pharmaceutical / 52% / loss of KRW12 billion
Cosmocos (private): Cosmetics / 98.6% / KRW0.5 billion
Sang Sang Stay (private) Hotel / 100% / loss of KRW7.3 billion
LSK Global PS (private): Pharmaceutical / 23.3% / KRW2.5 billion
Lite Pharm Tech (private): Pharmaceutical / 16.8% / KRW0.1 billion
Innodis (private): IT / 19.6% / KRW0.2 billion
SJ Bio Med (private): Pharmaceutical / 14.4%
Starfield Suwon (private): Shopping mall / 50% / loss of KRW0.7 billion
Real Estate Business (Business Unit): Real Estate Development / Investment Real Estate asset worth KRW2.2 trillion

9 Businesses Worth KRW2 trillion

To be conservative, we are counting the value of only one subsidiary, Yungjin Pharmaceutical. If we use the current stock price (avg August 2022) with no control premium, the value of 52% stake is KRW0.3 trillion.

Value of Real Estate: according to KT&G annual report (2021), Investment RE asset is estimated to be KRW2.2 trillion.

Value of these two is KRW2.5 trillion.

We have assumed zero value for all other non-core subsidiaries.

It’s KRW2.5 trillion to be exact, but we are calling it KRW2 trillion for simplicity.