KT&G is attracting renewed global investor interest after reporting record first-quarter overseas tobacco sales and continued strength in shareholder returns, according to The Korea Times. Earlier this month, Capital Group acquired a 5.61% stake in the company through its subsidiary, following a similar move in January by BlackRock, which built a position of more than 5%. Foreign investors have posted net purchases of KT&G shares for 22 consecutive trading days since April 9, lifting foreign ownership by nearly one percentage point, as investors increasingly view the stock as a value play supported by solid fundamentals and dividend policy rather than Korea’s semiconductor-heavy market trends.
KT&G’s share price climbed from the ₩140,000 ($92.40) range in January to around ₩180,000 ($118.80), supported by first-quarter sales of ₩1.7 trillion ($1.1 billion) and operating profit of ₩365 billion ($241 million), up 14.3% and 27.6% year-on-year, respectively. Overseas tobacco sales reached a record ₩560 billion ($370 million), with operating profit from global operations rising 56.1%. Having already met its ₩3.7 trillion ($2.4 billion) shareholder return target for 2024–2027, KT&G plans to announce a new return policy later this year and has pledged to cancel all treasury shares following revisions to Korea’s Commercial Act, moves that analysts say are reinforcing its appeal among long-term institutional investors.