Hyundai Motor rises to become KT's largest shareholder

Hyundai Motor and Kia headquarters in Seoul / Courtesy of Hyundai Motor Group By Lee Min-hyung Hyundai Motor Group became the largest shareholder of KT, Thursday, following a government approval. The Ministry of Science and ICT had reviewed the change in the mobile carrier’s largest shareholder since March when the National Pension Service (NPS) sold more than 2.88 million shares in KT.

This reduced the NPS’ stake in KT to 7.51 percent, which is smaller than Hyundai Motor Group's current 7.89 percent stake.



As of Thursday, Hyundai Motor and Hyundai Mobis own 4.75 percent and 3.14 percent of KT, respectively.

As KT is classified as a key telecommunication service operator, it requires government approval for any firm seeking to become its largest shareholder. The science ministry gave its approval, as the carmaker involuntarily became the largest shareholder without acquiring any additional KT shares following the NPS' sales of its shares in the mobile carrier. “Additionally, the carmaker is unlikely to exude any practical management rights on KT with the portion of the stake,” a ministry official said.

After months of screening, the ministry came to the conclusion that the change in KT’s largest shareholder does not harm public interests. Hyundai Motor Group and KT are in close ties for future mobility. In 2021, a consortium, led by Hyundai Motor, KT and Korean Air was launched for their partnership in urban air mobility (UAM).

In 2022, Hyundai Motor Group and KT exchanged shares to tighten their partnership in telecommunication and mobility. Both sides have since deepened their strategic ties in areas such as autonomous driving and UAM..