Recently, KT&G has been drawing attention from global asset management firms as it implements an expanded shareholder return policy alongside strong overseas results.

According to the Financial Supervisory Service’s electronic disclosure system on the 11th, BlackRock Fund Advisors, the world’s largest asset management company, acquired 467,350 KT&G shares the previous day. Earlier, at the end of January, BlackRock had secured a 5.01% stake in KT&G. With the additional acquisition after about four months, its stake rose by 1.14 percentage points to 6.15%.

On the 9th, major U.S. asset manager Capital Group also increased its KT&G holding to 7.21% for simple investment purposes. U.S.-based investment fund First Eagle Global Fund newly disclosed on the 4th that it held a 5.02% stake in KT&G. First Eagle’s stake exceeded 5% as KT&G’s cancellation of treasury shares reduced the total number of shares outstanding. As of the 10th, foreign ownership in KT&G stood at 51.24%.

KT&G is currently sustaining strong performance driven mainly by overseas combustible cigarette sales. On a consolidated basis in the first quarter, it posted revenue of KRW 1,703.6 billion and operating profit of KRW 364.5 billion. In particular, the overseas combustible cigarette business saw revenue and operating profit increase by 24.6% and 56.1%, respectively, year-on-year, boosted by strategic price hikes and other factors.

Strong earnings momentum is translating into top-tier shareholder returns. KT&G is pursuing both stable cash dividends and cancellation of treasury shares. For the 2025 fiscal year, the dividend per share is KRW 6,000, up KRW 600 from KRW 5,400 in the previous year. The total dividend amount is KRW 627.4 billion, and the company plans to pay approximately KRW 2,400 billion in cash dividends over the four years from 2024 to 2027. It is also reported to be preparing to announce a new shareholder return policy in the second half of this year, with an emphasis on strengthening dividends.

In addition, ongoing active communication with capital markets, including continuous overseas non-deal roadshows (NDR) led by CEO Bang Kyung-man and the top management team, is cited as another reason for favorable evaluations from global investors.

A KT&G official stated, “The increased shareholdings by global asset management firms have served as an opportunity to confirm capital market confidence in the execution of the company’s mid- to long-term vision and its future growth potential,” adding, “Going forward, we will focus on enhancing corporate value through structural profit growth in core businesses such as overseas combustible cigarettes and shareholder returns at the highest level in Korea.”

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