BlackRock Increases Stake in KT&G to 6.15%, Foreign Ownership Exceeds 51%

BlackRock, the world's largest asset management firm, has increased its stake in KT&G. Following a recent announcement of a stake increase by Capital Group, KT&G's foreign ownership has now surpassed 51%.

On June 10, KT&G disclosed that BlackRock acquired an additional 6.15% of its shares for investment purposes. This follows BlackRock's acquisition of 5.01% of KT&G shares at the end of January, marking a 1.14 percentage point increase after purchasing an additional 467,350 shares over the past four months.

On June 9, Capital Group, a major U.S. investment firm, announced it had increased its stake in KT&G to 7.21%. With assets under management totaling $3.3 trillion, Capital Group is recognized for its strong long-term investment strategy.

As a result of the consecutive stake increases by BlackRock and Capital Group, KT&G's foreign ownership rate rose to 51.24% as of this announcement.

The surge in foreign ownership is attributed to strong overseas performance and expectations for enhanced shareholder returns.

In the first quarter, KT&G reported consolidated revenues of 1.7036 trillion won and operating profits of 364.5 billion won, representing year-on-year increases of 14.3% and 27.6%, respectively.

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

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

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

KT&G reported that President Bang Kyung-man and other executives have actively engaged with global investors through non-deal roadshows (NDRs).

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

A KT&G representative stated, "The increase in stakes by global asset management firms has reaffirmed the capital market's trust in the company's long-term vision and future growth potential. We will focus on enhancing corporate value through structural profit growth in key businesses like overseas cigarettes and maintaining a top-tier level of shareholder returns in Korea."