LG Chem "Dividend of Over 10,000 KRW Per Share for 3 Years" (Comprehensive)

[Asia Economy Reporter Park So-yeon] LG Chem has once again embarked on 'soothing shareholders' by promising an active dividend policy as shareholder opposition to the spin-off of its battery business division shows no signs of abating.

On the 14th, LG Chem announced, "To eliminate uncertainties caused by the spin-off and enhance shareholder value, we will pursue a cash dividend of at least 10,000 KRW per common share annually for the next three years starting this year."

They also stated, "To apply the same dividend resource standards as before the spin-off, we aim for a dividend payout ratio of over 30% based on net income in the consolidated financial statements."

The net income in the consolidated financial statements refers to the combined net income of the newly established LG Energy Solution Co., Ltd. (tentative name), which will be created following the spin-off of the battery division.

The company explained the purpose of the dividend policy as "to ensure dividend stability and enhance shareholder value following the establishment of the new corporation."

LG Chem will hold a shareholders' meeting on the 30th at 9 a.m. in the main auditorium on the basement first floor of the LG Twin Towers East Building in Yeouido, Seoul, with the agenda of approving the spin-off plan. Electronic voting will be introduced starting from this shareholders' meeting.

Ahead of the meeting, Vice Chairman Shin Hak-cheol reiterated the necessity of the battery business spin-off in a letter sent to shareholders on the same day.

Vice Chairman Shin said, "With the advent of the electric vehicle era, the battery industry is expected to grow tremendously, but competition is also becoming very fierce due to the entry of new competitors and attempts by automakers to produce batteries themselves. While our company maintains a solid position as a global leader, the challenges are significant."

He added, "We decided to spin off to establish a structural system in the battery business and secure firm competitiveness. The independent corporation will form an optimized organization suited to the business characteristics, enabling faster decision-making and improving operational efficiency."

Vice Chairman Shin emphasized, "The independent corporation will be able to secure sufficient investment resources for growth through various means in the future. The financial structure improvement through the spin-off will allow us to expand investments in petrochemicals, advanced materials, and life sciences, as well as strengthen shareholder return policies, which will contribute to the company's development and enhancement of shareholder value."

This content was produced with the assistance of AI translation services.