LG Electronics Achieves Record-Breaking Performance Thanks to 'COVID-19 Boom'... Highest Dividend in 11 Years

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[Asia Economy Reporter Kim Heung-soon] LG Electronics will pay a cash dividend of 1,200 KRW per common share and 1,250 KRW per preferred share. This represents an increase of about 60% compared to last year. Achieving its highest performance ever, including surpassing 3 trillion KRW in annual operating profit for the first time since its founding, the company decided to pay the largest dividend in 11 years since 2010.

According to LG Electronics on the 29th, at the board meeting held the previous day, it was decided to pay a cash dividend about 60% higher than last year's 750 KRW for common shares and 800 KRW for preferred shares. The total dividend amount is 216.9 billion KRW for common shares and 21.5 billion KRW for preferred shares, with the dividend record date set as December 31 of last year. This will be finalized after approval at the shareholders' meeting scheduled for March.

This dividend amount is the largest since 2010, when 1,750 KRW per common share and 1,800 KRW per preferred share were paid. This reflects the outstanding performance last year. LG Electronics' consolidated sales for last year were confirmed at 63.262 trillion KRW, and operating profit at 3.195 trillion KRW. These figures represent increases of 1.5% and 31.1% respectively compared to the previous year, both being record highs. It is the first time annual operating profit has exceeded 3 trillion KRW. Net profit reached 2.0638 trillion KRW, an increase of 1,046.9% compared to the previous year.

LG Electronics will announce the performance by business division this afternoon. Industry insiders expect that the spread of the untact (non-face-to-face) culture due to COVID-19 has become widespread, leading to increased demand for home appliances and IT products, resulting in remarkable performance. In particular, the H&A Business Division, responsible for home appliances, is expected to exceed 2 trillion KRW in annual operating profit for the first time, and the HE Business Division, responsible for TV business and others, is expected to exceed 1 trillion KRW in operating profit.

An industry official said, "Although sales of home appliances and TVs were sluggish in early last year due to the unexpected spread of COVID-19, consumer sentiment revived in the second half as time spent at home increased," adding, "Annual sales volume is expected to exceed the usual level."

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