KT&G is drawing interest from global asset managers, with foreign ownership in the company rising above 51%. Photo credit: KT&G.
Global asset managers continue to build positions in South Korean tobacco company KT&G, reflecting growing confidence in its international business performance and shareholder-return strategy.
US-based Capital Research and Management Company, an affiliate of Capital Group, increased its stake in KT&G to 7.21% from 5.61% within about a month, according to regulatory filings. The investment firm now holds roughly 7.49 million shares in the company.
The move came just days before BlackRock Fund Advisors, the world's largest asset manager, disclosed that it had raised its KT&G stake to 6.15% from 5.01%. BlackRock acquired an additional 467,350 shares over the past four months.
The purchases have pushed foreign ownership of KT&G above 51%, underscoring strong international interest in the company. Analysts and investors have linked the growing demand to KT&G’s expanding overseas tobacco business and expectations of enhanced shareholder returns.
KT&G has signaled that it will introduce a new shareholder-return framework in the second half of 2026. Market participants expect the plan to include a stronger dividend policy, supported by reduced capital expenditure requirements following the completion of the company's overseas cigarette manufacturing facilities.
The company has already taken significant steps to boost shareholder value. Earlier this year, KT&G announced the cancellation of treasury shares worth approximately KRW1.85 trillion (US$1.3 billion), becoming one of the first Korean companies to take such action under revised commercial regulations. The company also increased its annual dividend to KRW6,000 (US$4.08) per share.
KT&G previously committed to returning KRW3.7 trillion (US$2.64 billion) to shareholders through dividends and share repurchases by 2027 as part of a broader value-enhancement initiative.
Management has also intensified engagement with international investors. According to the company, c.e.o. Bang Kyung-man and senior executives have conducted overseas non-deal roadshows and maintained active communication with global investment institutions.
A KT&G spokesperson said, “The increase in ownership by global asset managers serves as a testament to the capital market's confidence in the company's mid- to long-term vision and future growth potential. In the future, the company will continue to enhance corporate value through structural profit growth in its core businesses, including the global cigarette business, and industry-leading shareholder returns."