[Alpha Biz= Reporter Kim Jisun] LG Electronics has announced a new value-up program aiming to achieve a return on equity (ROE) of over 10% by 2027. The company is also considering stock buybacks and the cancellation of treasury shares as part of its strategy to enhance shareholder value.

On October 22, LG Electronics disclosed its mid- to long-term business strategy and shareholder return policies. The company aims to achieve its “7·7·7” targets by 2030: a 7% average annual growth rate, 7% operating profit margin, and a market value multiplier of 7 times. The company also set a goal of reaching KRW 100 trillion in revenue by 2030, excluding LG Innotek. The portfolio is expected to shift towards platform-based services, B2B, and new business ventures, with these areas anticipated to account for 52% of total sales and 76% of operating profits by 2030.

The value-up program includes a shareholder return policy that will be applied for the next three years, up to 2026. LG Electronics plans to allocate more than 25% of its consolidated net profit for shareholder returns. 

 

To increase predictability for investors, the company will continue its minimum annual dividend of KRW 1,000 and semi-annual dividends, with plans to also explore quarterly dividends. Notably, LG Electronics is considering the cancellation and additional purchase of treasury shares to further enhance shareholder value.

 

 

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