Key Points
- KT&G overseas sales hit record;
- Foreign investors buy for 22 days;
- Capital Group and BlackRock increase stakes;
- Overseas profit rises 56.1%.
2Firsts
May 17, 2026
According to The Korea Times, South Korean tobacco company KT&G continues drawing global investor attention following record growth in its overseas tobacco business.
Financial results showed KT&G’s total first-quarter sales rose 14.3% year-on-year to 1.7 trillion won (approximately $1.24 billion), while operating profit increased 27.6% to 365 billion won (approximately $266 million).
Among the key drivers, overseas tobacco sales climbed 24.6% to 560 billion won (approximately $410 million), marking the company’s highest quarterly overseas tobacco revenue on record.
Meanwhile, overseas operating profit increased 56.1% year-on-year.
The report said overseas operations have become a major growth engine for KT&G.
In capital markets, global asset manager Capital Group recently disclosed a 5.61% stake in KT&G through Capital Research and Management Company.
BlackRock had also acquired more than a 5% stake in KT&G earlier this year.
The Korea Times reported that foreign investors recorded net purchases of KT&G shares for 22 consecutive trading days from April 9 through Tuesday.
During the period, foreign investors purchased more than 1.03 million shares, increasing foreign ownership by 0.96 percentage points.
As of Tuesday, foreign holdings had increased approximately 3% compared with the beginning of the year.
Supported by overseas growth and continued foreign buying, KT&G’s stock price rose from the 140,000 won range (approximately $102) in January to around 180,000 won (approximately $131).
The report also noted that KT&G has already achieved its shareholder return target of 3.7 trillion won (approximately $2.7 billion) set for 2024–2027.
The company plans to announce a new shareholder return policy later this year and pledged to retire all treasury shares.
At the same time, KT&G continues expanding its international next-generation tobacco business, including heated tobacco products, to reduce dependence on the domestic Korean market.
Analysts said that as growth in the global tobacco industry increasingly shifts toward overseas markets and reduced-risk products, international investors are reassessing KT&G’s long-term value.
（Cover Image source: The Korea Times）
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