Capital Group raises KT&G stake to 7.2% as global sales surge

Capital Research and Management Company raised its stake in KT&G to 7.21%, up from 5.61% in May, the company disclosed Tuesday.

"Following BlackRock, global financial companies that are long-term investment-oriented are consecutively acquiring stakes and recognizing our company's fundamental competitiveness," a KT&G official said.

The additional purchase of about 1.6 million shares brings Capital Group's total holdings to roughly 7.49 million shares. Capital Group, the world's largest active fund manager with $3.3 trillion in assets, first disclosed a 5.61% stake on May 8. The stake increase comes after KT&G posted record quarterly overseas sales of 559.6 billion won in the first quarter, up 24.6% from a year earlier. Consolidated revenue rose 14.3% to 1.7 trillion won, while operating profit climbed 27.6% to 364.5 billion won.

The global cigarette business drove the outperformance, achieving what the company called "triple growth" — revenue, operating profit and sales volume all rising simultaneously across every region. Operating profit from overseas operations jumped 56.1% year over year, while sales volume increased 15%.

The stake buildup by Capital Group and BlackRock signals growing international confidence in KT&G's global expansion strategy. KT&G plans to announce a new shareholder return policy in the second half, focusing on dividend enhancements tied to global business growth.

The increased ownership by long-term-oriented asset managers validates KT&G's turnaround strategy centered on overseas markets. Investors will watch for the shareholder return policy announcement in H2 2026 for details on dividend payout ratios and potential buyback programs.

This article is for informational purposes only and does not constitute investment advice.