[Edaily Reporter Shin Su-jeong] #KT&G is attracting more global investors by emphasizing the growth of its overseas business and its shareholder return policy.

KT&G announced on the 9th that Capital Research and Management Company, a subsidiary of U.S. asset manager Capital Group, holds a 7.21% stake in KT&G for pure investment purposes. The number of shares held is approximately 7.49 million.

Capital Group, which disclosed on the 8th of last month that it held a 5.61% stake in KT&G, increased its stake by 1.60 percentage points in just one month. Capital Group is a global asset management firm managing approximately $3.3 trillion in assets.

KT&G reported improved performance in the first quarter of this year, driven by growth in its overseas cigarette business. On a consolidated basis, first-quarter revenue was 1.7036 trillion won, and operating profit was 364.5 billion won, representing year-over-year increases of 14.3% and 27.6%, respectively.

Revenue from the overseas cigarette business reached 559.6 billion won, a 24.6% increase year-over-year. Operating profit rose by 56.1%, and sales volume increased by 15.0%. This growth was driven by strategic price hikes, cost reductions, and increased sales volume across global regions.

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

A KT&G official stated, “Following BlackRock, global asset management firms with a strong preference for long-term investment, such as Capital Group, have been continuously acquiring stakes in the company, demonstrating recognition of our fundamental competitiveness.” The official added, “We will continue to enhance shareholder value by establishing a virtuous cycle of profit growth centered on our global business and shareholder returns.”