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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] KT is setting its sights on overtaking SK Telecom as the leading telecommunications provider in South Korea.
The company is expected to report strong earnings for the third quarter, and its attractiveness as a dividend stock is highlighted by a significant surge in share price, reaching its highest level in over 13 years. The market capitalization gap between KT and SK Telecom, which exceeded 2 trillion won at the end of last year, has narrowed to just over 1 trillion won.
On October 18, KT shares rose by 3.50% during trading, reaching a new high of 44,300 won—its highest price since January 2011.
The increase in KT's stock price is attributed to its proactive shareholder return policy, including the implementation of its first-ever quarterly dividend. The share price has soared by 27.5% in the past six months, significantly outperforming SK Telecom (10.9%) and LG Uplus (2.5%). As of the latest figures, KT's market capitalization stands at approximately 10.81 trillion won, compared to SK Telecom's 12.07 trillion won.
This surge has been driven by substantial foreign investment in KT, with foreign ownership increasing from 42.7% at the beginning of the year to 48.3%, nearing the 49% foreign ownership limit for telecommunications stocks. In contrast, foreign investment in SK Telecom has risen slightly from 41% to 42.5%, while LG Uplus saw a significant decline from 38.5% to 34.9%.
As both companies prepare to release their third-quarter earnings next month, attention is focused on whether KT will dethrone SK Telecom as the market leader. Analysts predict that KT will show the most significant improvement in performance among the three major telecom companies, with an anticipated operating profit of 460.8 billion won for Q3, representing a 43.15% increase year-over-year. In comparison, SK Telecom's operating profit is estimated to rise by 4.84% to 522.1 billion won.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
