#South Korea #Seoul #Investment #KT&G #Capital Research

KT&G Sees Growth with Increased Stake Sale by Capital Research

On June 9, 2026, KT&G, the South Korean multinational and leader in the tobacco industry, unveiled that Capital Research and Management Company has escalated its investment in the firm from 5.6% to 7.21%. This move was revealed through disclosures made via South Korea's DART system, indicating that Capital Research now holds approximately 7.49 million shares of KT&G.

This significant increase in stake showcases the growing confidence investors have in KT&G's business operations. Previously, on May 8, the company had revealed a 5.61% stake held by Capital Research, marking a swift progression toward this latest acquisition. Notably, Capital Research and Management is one of the leading active fund companies globally, managing assets totaling around 3.3 trillion USD, known for its propensity for long-term investments.

Impressive Q1 Performance

KT&G's performance in the first quarter of the fiscal year has been impressive, marked by a notable revenue surplus of 1.7036 trillion KRW and a consolidated operating profit of 364.5 billion KRW. These figures represent year-on-year growth rates of 14.3% and 27.6%, respectively. The company attributes this success largely to the global cigarette business, which achieved record revenue growth, supported by strategic price hikes, reduced costs, and solid volume growth across multiple regions.

The revenue derived from global tobacco sales soared to 559.6 billion KRW, boasting a year-on-year growth of 24.6%. Additionally, the operating profits and sales volumes from international markets experienced extraordinary growth rates of 56.1% and 15.0%, respectively, thereby leading to what the company describes as a “triple growth”.

Future Plans for Shareholder Return

Looking ahead, KT&G is set to unveil a new shareholder return policy in the latter half of 2026, with an emphasis on bolstering dividends. This strategy is designed to be closely tied to the qualitative growth that comes from their expanding global operations.

A spokesperson from KT&G remarked on the latest investment surge, stating, “With the backing of prominent investors like BlackRock and Capital Research and Management, our fundamental competitiveness is gaining recognition. Moving forward, we are committed to enhancing shareholder value through a virtuous cycle of profit growth and reinvestment in our shareholder return schemes.”

In summary, KT&G's latest financial advancements and the substantial rise in stake from Capital Research indicate a positive trajectory for the company, reinforcing its position in the competitive global tobacco market. Investors and stakeholders will be closely monitoring KT&G's forthcoming announcements and strategies as the company continues to navigate an ever-evolving economic landscape.