U.S.-based asset management giant Capital Group has increased its stake in KT&G to more than 7%, signaling growing confidence in the Korean tobacco company's long-term growth prospects.
According to a regulatory filing disclosed on June 9, Capital Group now holds approximately 7.49 million shares of KT&G, representing a 7.21% ownership stake in the company.
The investment firm had previously disclosed a 5.61% stake in KT&G in May and has since continued to purchase additional shares, further strengthening its position as one of the company's major shareholders.
Market observers are closely watching Capital Group's move. The global asset manager, which oversees roughly $3.3 trillion in assets, is widely known for its long-term investment approach, focusing on companies with strong fundamentals and sustainable growth potential rather than short-term market gains.
KT&G has recently attracted attention from both domestic and international investors through the expansion of its overseas tobacco business, development of next-generation products, and shareholder-friendly policies. The company's stable cash flow generation and attractive dividend profile are also viewed as key investment strengths.
Analysts note that Capital Group's increased investment follows similar moves by other global institutional investors, including BlackRock, suggesting rising confidence in KT&G's business competitiveness and future earnings potential. The company's overseas growth strategy and improving profitability are considered major factors behind the growing investor interest.
KT&G has been strengthening shareholder returns through initiatives such as share buybacks, share cancellations, and dividend increases while continuing to expand its global business footprint. Market participants believe these efforts could further attract long-term institutional capital in the future.
