LG to Acquire Treasury Shares Worth 500 Billion KRW by 2024

[Asia Economy Reporter Moon Hyewon] LG has decided to acquire treasury shares worth a total of 500 billion KRW by the end of 2024.

On the 27th, LG held a board meeting and announced this decision to enhance shareholder value. To this end, LG plans to enter into a trust contract with KB Securities to acquire treasury shares worth 500 billion KRW from the 30th of this month until December 31, 2024.

Previously, in 2020, reflecting its characteristics as a holding company, LG announced a dividend policy to return more than 50% of net income based on separate financial statements (excluding one-time non-recurring gains) to shareholders, limited by dividend income.

LG has decided to remove the phrase "limited by dividend income" from this dividend policy. This is to secure the stability and flexibility of dividend resources even if temporary fluctuations in subsidiary profits occur. Over the past three years, LG has paid dividends amounting to more than 60% of net income based on separate financial statements (excluding one-time gains). Earlier this year, it paid approximately 448.9 billion KRW in dividends, about 65% of net income.

An LG official stated, “While striving to enhance shareholder value through active shareholder returns, we will also actively invest in new businesses to prepare for the future and build a sustainable growth foundation.”

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