LG Household & Health Care to Cancel 300 Billion KRW Worth of Treasury Shares Over 3 Years... Dividend Payout Ratio Above 30%

Announcement of Corporate Value Enhancement Plan
All Treasury Shares to Be Cancelled by 2027
Dividend Payout Ratio to Exceed 30%... Interim Dividends Also to Be Paid

LG Household & Health Care will burn all of its treasury shares worth 300 billion KRW over the next three years. Starting next year, the dividend payout ratio to shareholders will be raised from the current mid-to-high 20% range to over 30%, and interim dividends will also be implemented.

On the 22nd, LG Household & Health Care announced a corporate value enhancement plan that includes ▲strengthening shareholder returns ▲improving performance ▲further improving corporate governance.

LG Household & Health Care CI. Provided by LG Household & Health Care

To strengthen shareholder returns, LG Household & Health Care plans to burn all of its currently held treasury shares, consisting of 958,412 common shares and 3,438 preferred shares, over three years from 2025 to 2027. This corresponds to 6.1% and 0.2% of the total issued shares, respectively. The value of the shares to be burned, calculated based on the closing price on the previous day, the 21st, amounts to approximately 301.4 billion KRW. The number of shares to be burned each year has not yet been determined.

Additionally, the dividend payout ratio will be raised to over 30% starting with dividends paid in 2025. LG Household & Health Care has maintained an average dividend payout ratio in the mid-to-high 20% range over the past five years. From 2025, in addition to the annual regular dividend, interim dividends will be paid. A "dividend amount confirmed first - dividend record date set later" method will also be introduced to increase the predictability of the dividend policy.

According to LG Household & Health Care, this enhancement plan is expected to raise the compliance rate with the key corporate governance indicators based on the Korea Exchange guidelines from the current 80% to 87%.

LG Household & Health Care has set a goal to achieve sales of 10 trillion KRW by 2030 based on its existing businesses and to increase the operating profit margin from around 7% in 2023 to over 10% by 2030. In addition, it plans to seek further growth through active mergers and acquisitions (M&A).

An LG Household & Health Care official explained, "This corporate value enhancement plan is based on confidence in stable profits and continuous cash generation capabilities, leading to treasury share burn and increased dividend payout ratio. Going forward, we plan to sustain stable growth in the mid-to-long term based on our business portfolio including beauty, HDB, and beverages."

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