Capital Group Increases Stake in KT&G from 5.6% to 7.2%

The American asset management firm Capital Group has significantly increased its stake in KT&G.

The surge in the overseas cigarette business and the anticipated strong shareholder return policy in the second half of the year are believed to have attracted the interest of global investors.

According to a disclosure on June 9 from the Financial Supervisory Service, Capital Group now holds over 7.49 million shares of KT&G, raising its ownership stake to 7.21% of the total issued shares.

With assets under management totaling $3.3 trillion, Capital Group is recognized as a leading global asset management firm with a strong inclination toward long-term investments.

The expansion of this global investor's stake is attributed to KT&G's solid performance. In the first quarter, KT&G reported consolidated revenues of 1.7036 trillion won and operating profit of 364.5 billion won, marking increases of 14.3% and 27.6%, respectively, compared to the same period last year.

The tobacco division generated revenues of 1.1559 trillion won, a 17% increase, while operating profit rose by 27.2% to 321.6 billion won.

The overseas cigarette business saw uniform growth in sales across key regions, including Asia-Pacific and Eurasia. First-quarter revenues reached 559.6 billion won, a 24.6% increase year-on-year, setting a new quarterly record.

With cost and administrative expense reductions contributing to a 56.1% surge in operating profit, KT&G achieved a "triple growth" in revenue, operating profit, and sales volume simultaneously.

KT&G plans to announce a new shareholder return policy focused on enhancing dividends in the second half of the year, driven by qualitative growth led by its global business.

A KT&G official stated, "Following BlackRock, the continued acquisition of shares by long-term investment-oriented global asset management firms like Capital Group recognizes the company's fundamental competitiveness. We aim to establish a virtuous cycle of profit growth and shareholder returns centered on our global business to enhance shareholder value."