Hyundai Motor Group becomes largest shareholder of KT

KT's headquarters in Gwanhwamun in central Seoul [YONHAP]

The largest shareholder of KT, one of Korea’s three major mobile carriers, has switched from the National Pension Service (NPS) to Hyundai Motor Group after the former divested shares.

Hyundai became the largest shareholder with a 7.89 percent stake, the telecom company announced through an electronic disclosure on Tuesday.

The NPS, which initially possessed an 8.53 percent stake, sold 2,884,281 shares to reduce its stake to 7.51 percent.

Hyundai Motor Group and its affiliate, Hyundai Mobis, own a combined 7.89 percent stake in KT. Shinhan Bank follows as the third-largest shareholder with a 5.64 percent stake.

In order for the automaker to wield its rights in KT’s management affairs as the largest shareholder, it still needs to be reviewed by the Ministry of Science and ICT in accordance with the Telecommunications Business Act. The process normally takes up to three months.

Analysts speculate that Hyundai Motor’s position will be temporary because the automaker did not willingly become KT’s largest shareholder.

“There’s only a 0.34 percent-stake difference in ownership between the largest shareholder, Hyundai Motor Group, and the second-largest shareholder, the NPS,” read Samsung Securities report on Wednesday. “So there is a possibility that the inspection process for changing the largest shareholder may not be necessary if the stake ratio changes before the completion of the government’s review.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]