[News Space=Reporter seungwon lee] The world's largest asset management company, BlackRock, acquired a 5.01% stake (5,914,169 shares) in KT&G, causing the company's stock price to hit an all-time high.

BlackRock Fund Advisors, which purchased an additional 68,646 shares on January 27, is required to report to financial authorities within five business days if it exceeds 5% under Korean securities law, and KT&G disclosed that it was for "simple investment purposes."

Stock price hits record high, BlackRock becomes one of the top five shareholders

Immediately following the announcement, KT&G's stock price hit a record high of 153,900 won, setting a new closing price. According to FnGuide data, BlackRock emerged as one of the third to fifth largest shareholders, following IBK Industrial Bank of Korea (8.06%) and the National Pension Service (7.74%). The increased foreign ownership is believed to have stimulated investor sentiment.

KT&G's major shareholders

As of the end of January 2026, KT&G's largest shareholder (over 5%) was the Industrial Bank of Korea (IBK), with an 8.06% stake, followed by the National Pension Service (8.40%) and First Eagle Investment Management (8.29%). BlackRock Fund Advisors joined the top five shareholders.

Consensus outlook positive ahead of February 5th earnings release

KT&G is scheduled to release its 2025 annual earnings on February 5th. Market consensus forecasts project sales of KRW 6.5319 trillion (up 10.6% year-on-year) and operating profit of KRW 1.3742 trillion (up 13.3% year-on-year). The continued growth of its overseas tobacco business is expected to drive this performance, while operating rates exceeding 70% at its Kazakhstan plant and full-scale production expansion at its Indonesian plant are expected to support improved profitability.

Altria Partnership Leads Nicotine Pouch Market

In September 2025, KT&G signed a memorandum of understanding with Altria Group to jointly acquire Another Snus Factory Stockholm AB (ASF), a Swedish nicotine pouch company, marking its foray into the next-generation tobacco market. This partnership aims to leverage ASF's LOOP and Lynx brands to expand its global smokeless nicotine offerings, while also creating synergy by helping KT&G subsidiary Korea Ginseng Corporation launch red ginseng-based energy and wellness products in the US market.

IBK Securities maintains "Buy" rating, emphasizing potential for overseas expansion

Earlier this month, IBK Investment & Securities maintained a "Buy" rating on KT&G with a target price of KRW170,000, projecting consolidated sales of KRW7.015 trillion (+6.5%) and operating profit of KRW1.4581 trillion (+8.4%) in 2026. The full-scale launch of the nicotine pouch business and expansion of overseas production are expected to drive continued growth, and BlackRock's acquisition of a large stake is expected to further strengthen global investor confidence.