[Alpha Biz= Reporter Kim Jisun] LG announced on the 22nd that it will cancel a total of 500 billion won worth of its own shares by 2026 to enhance shareholder value.

As part of its value-up plan, which focuses on shareholder returns, LG disclosed that it decided in May 2022 to acquire 500 billion won worth of treasury stock, completing the purchase earlier this year in June. The shares to be canceled include 6,059,161 common shares. Additionally, treasury stock previously acquired in fractional shares (49,828 common shares and 10,421 preferred shares) will also be fully canceled, pending approval at the regular shareholders meeting next year.

In line with this, LG also announced a dividend policy adjustment, raising the payout ratio from the previous 50% of net income (excluding one-time non-recurring profits) to 60% starting next year. The average dividend payout ratio from 2018 to 2023 was approximately 66%.

LG will also introduce an interim dividend policy starting next year, shifting from the previous single annual dividend to two distributions per year. The interim dividend will be determined in advance at the annual general meeting, with the dividend record date set afterward, to ensure a more predictable shareholder return policy.

 

 

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