BlackRock, the World’s Largest Asset Manager, Acquires Over 6% Stake in KT&G

US Asset Management Giant "Capital Group" Raises Stake to 7%

BlackRock Fund Advisors, the world's largest asset management firm, has acquired a 6.15% stake in KT&G for investment purposes.

According to the electronic disclosure system on June 11, BlackRock secured a 5.01% stake in KT&G at the end of January this year. Over the following four months, it acquired an additional 467,350 shares, raising its stake by 1.14 percentage points to 6.15%.

Earlier, on June 9, Capital Group, a major U.S. asset manager, increased its stake in KT&G to 7.21%. With global asset managers continuing to boost their holdings in KT&G, the company’s foreign ownership ratio reached 51.24% as of June 10.

The expansion of foreign investors' stakes has been driven by strong overseas performance and enhanced shareholder returns. Additionally, KT&G’s top management has received positive reviews from global investors for its active communication with the capital markets, including regular non-deal roadshows (NDR) targeting international investors.

In the first quarter, KT&G posted consolidated sales of 1.7036 trillion won and operating profit of 364.5 billion won, up 14.3% and 27.6%, respectively, from the same period last year. Notably, the overseas cigarette business saw structural growth, with sales and operating profit rising 24.6% and 56.1%, respectively, year-on-year, driven by strategic price increases.

Buoyed by this strong performance, KT&G plans to announce a new shareholder return policy in the second half of the year, with a particular focus on strengthening dividends. The robust performance of the overseas cigarette business is translating into top-tier shareholder returns, earning high praise from both domestic and international capital markets.

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