Signal Korean court dismisses activist fund's $49 million suit against former KT&G directors

Summary

The Daejeon District Court dismissed a shareholder derivative lawsuit on August 13, 2026. The suit had been brought by Singapore-based activist fund Flashlight Capital Partners against 18 former directors of KT&G, seeking 49 million dollars, or roughly 69.8 billion won. FCP had argued that KT&G's transfer of treasury shares to public foundations without compensation was an unlawful takeover defense and a breach of directors' duties that damaged shareholder value. The court found that the former directors had reached their decisions through a lawful process. It also ruled that the decision did not amount to a breach of trust made for the purpose of defending against a takeover. FCP said it plans to appeal the ruling.