On March 15, 2024, KT&G Corporation announced that it has responded to independent proxy advisory firm Institutional Shareholder Services(ISS) recommendation to vote against Company Board of Directors' proposals, by issuing a letter to both ISS and its shareholders on March 15, 2024, stating that it has observed that ISS analysis incorporates data and assertions provided by a shareholder, Flashlight Capital Partners, the Company believes that ISS' recommendation to vote against the appointment of CEO nominee Kyung-man Bang appears to contradict its own proxy voting guideline, 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, and according to ISS' proxy voting guideline, if a shareholder who owns more than 5% of the Company's stock nominates a director, the candidate may not be considered independent. In addition, the Company started that after a meeting with ISS on March 11, 2024, where Flashlight Capital Partners provided data was cited, Company sought clarification and requested the data for review, however, the Company did not receive a response. In conclusion, the Company seeks to address these concerns constructively and is committed to engaging in transparent discussions with all stakeholders and hopes for a careful reconsideration of the recommendations and a dialogue that serves the best interests of all shareholders.