LG Corporation has decided to retire 250 billion won worth of its own shares.
On the 28th, LG announced that it would retire 3,029,580 shares of common stock, acquired within the range of distributable income, to enhance shareholder value. The planned retirement date is September 4.
The retirement of own shares is the permanent elimination of shares acquired by a corporation. It is considered a typical shareholder return strategy alongside dividends, as it reduces the number of issued shares and increases earnings per share (EPS).
LG stated that it plans to retire the remaining 3,029,581 common shares of its own stock by the end of 2026 after this retirement. LG also retired a total of 60,249 shares, including 49,828 common shares and 10,421 preferred shares, which it acquired as fractional shares during the partitioning process with LX Holdings on April 29.
It also carried out its first interim dividends. On this day, LG decided on an interim dividend of 1,000 won per share for both common and preferred stocks. The record date for dividends is September 12, with the payment date scheduled for September 26. The total amount of interim dividends is approximately 154.2 billion won.
LG has announced and is sequentially implementing policies to enhance corporate value, including raising the dividend payout ratio and introducing interim dividends last year. Despite a decrease in net income this year, it maintained a cash dividend of 3,100 won per common share and 3,150 won per preferred share, resulting in a payout ratio of 76%.
It has also completed the purchase of subsidiary equity. From November of last year to March of this year, LG bought a total of 500 billion won worth of shares in LG Electronics and LG CHEM. As a result, the equity stake in LG CHEM increased from 30.06% to 31.52%, while the equity stake in LG Electronics rose from 30.47% to 31.76%.