Capital Group raises KT&G stake to 7.21 percent

U.S.-based asset manager Capital Research and Management Company — better known as Capital Group — increased its stake in Korean tobacco company KT&G to 7.21 percent for investment purposes.

KT&G’s regulatory filing on Tuesday showed that the asset manager holds approximately 7.49 million shares, equivalent to 7.21 percent of the tobacco company's total issued shares.

Capital Group had previously disclosed on May 8 that it held a 5.61 percent stake in KT&G and has since increased its ownership. The firm manages approximately $3.3 trillion in assets and is known for its long-term investment approach.

KT&G also reported higher first-quarter earnings. The company posted consolidated revenue of 1.7 trillion won ($1.22 billion) and operating profit of 364.5 billion won, up 14.3 percent and 27.6 percent on year, respectively.

Its overseas cigarette business posted quarterly revenue of 559.6 billion won, up 24.6 percent from a year earlier. Operating profit rose 56.1 percent from the first quarter of 2025, while sales volume increased 15 percent.

The tobacco company said it plans to announce a new shareholder return policy in the second half of the year, focused on strengthening dividend payouts.

“Following BlackRock, Capital Research and Management Company and other investors with long-term investment tendencies have acquired stakes in KT&G, moves that recognize KT&G’s fundamental competitiveness," said a KT&G spokesperson. "In the future, the company will continue to improve shareholder value by constructing a virtuous cycle of global business’s profit growth and shareholder return.”

BY KIM MIN-YOUNG [[email protected]]