September 20, 2024

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Headquarters of Hyundai Motor Group (left) and KT (provided by each company)

Hyundai Motor Group has officially become the largest shareholder of KT, one of the three main mobile carriers in Korea, the government said Thursday.

After months of review, the Ministry of Science and ICT decided to approve the change in KT's largest shareholder, concluding that it does not harm the public interest.

In March this year, the National Pension Service, the former biggest shareholder of KT, sold about 2.88 million shares of KT to lower its stake to 7.51 percent from 8.53 percent. As a result, Hyundai Motor Group’s 7.89 percent stake in KT unintentionally pushed the auto conglomerate to the top spot in the shareholders’ list.

Under the Telecommunications Business Act, basic telecommunications business operators, such as KT, must go through a government review if there is a new largest shareholder.

Behind the approval decision, the ministry’s review council pointed out that KT’s business portfolio has not changed since the switch in its largest shareholder, that Hyundai Motor Group has no intention to intervene in KT’s management and that Hyundai Motor Group’s current stake makes it difficult for the auto giant to take control of KT’s management.

By Kan Hyeong-woo (hwkan@heraldcorp.com)