NPS sells shares in KT, making Hyundai the top shareholder

Hyundai Motor Group has become the top shareholder of South Korea’s leading mobile carrier KT Corp., after the country’s National Pension Service (NPS) sold shares in the telecom services provider.

The auto giant might sell some of its stake in KT and remain the second-largest shareholder, as it needs to complete lengthy procedures to officially become the company's top shareholder in line with domestic laws, industry insiders said.

NPS cut its holdings in KT from 8.54% to 7.51% as of March 20, according to a regulatory filing on Tuesday by the NPS, the world’s third-largest pension fund.

Hyundai Motor Group, which was KT's second-largest shareholder, is now the top stakeholder with a combined 7.89% stake. Automaker Hyundai Motor Co. and auto parts producer Hyundai Mobis Co. hold 4.75% and 3.14% in KT, respectively. The group bought KT shares in 2022 through a strategic partnership on future mobility.

Korea’s Shinhan Bank holds KT's third-largest stake with 5.64%, followed by London-based asset manager Silchester International Investors LLP with 5.07%.

Hyundai Motor Group might divest some of its shares in KT to remain the second-largest shareholder, market insiders said.

Under Korea’s Telecommunications Business Act, an investor, with its affiliated persons or entities, needs to receive government approval to become the top stakeholder, or own more than 15% of outstanding shares in a local facilities-based telecom services provider such as KT, SK Telecom Co. or LG Uplus Corp. The approval involves a complex process, industry sources said.

Hyundai Motor Group will continue to cooperate with KT to advance in the future mobility market and does not plan to sell KT shares, a group official said.

Write to Seung-Woo Lee and Jin-Won Kim at leeswoo@hankyung.com
Jihyun Kim edited this article.