LG Electronics to Retire Own Shares for the First Time Since Founding... Cancellation Worth 60.2 Billion KRW

As Part of Corporate Value Enhancement
All 761,427 Treasury Common Shares to Be Cancelled

For the first time since its founding, LG Electronics will retire its own shares in an effort to enhance corporate value (value-up).

On July 24, LG Electronics announced that it will cancel all 761,427 shares of its common stock, which were acquired within the scope of distributable profits, by the end of this month.

Seoul Yeouido LG Twin Tower view. Photo by Jinhyung Kang aymsdream@

This amount corresponds to 0.5% of the total number of issued common shares. The amount scheduled for cancellation, based on the closing price on July 23, the day before the board resolution, is 60.2 billion KRW.

This is the first time LG Electronics has decided to cancel its own shares since its establishment. This cancellation, which is based on a board resolution, targets shares acquired within the scope of distributable profits. Only the number of issued shares will decrease; there will be no reduction in capital.

On this day, LG Electronics also carried out an interim dividend of 500 KRW per share for both common and preferred stocks. The record date for the dividend is August 8, and the payment date is August 22. The total amount of the interim dividend is approximately 90 billion KRW.

Since last year, LG Electronics has raised its payout ratio, based on consolidated net income attributable to owners of the parent, from 20% to 25%. In addition, the company has set the basic dividend per share at 1,000 KRW and is conducting interim dividends to provide shareholders with stable cash flow and to enhance shareholder value.

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