LG Electronics said on the 29th it will buy back its own shares. This is the first time since its founding that LG Electronics is purchasing treasury shares to enhance shareholder value. In the past, it mainly bought treasury shares to pay employee bonuses. The company also plans to increase shareholder dividends by more than 35% from a year earlier.
LG Electronics, following a board resolution that day, decided to buy back 100 billion won worth of treasury shares. It said the purpose of the purchase is to enhance shareholder value. Based on the closing price on the 28th, the day before the board meeting, the purchase volume is equivalent to 905,083 common shares and 189,371 preferred shares. The company said, "From a mid- to long-term perspective, we will continue efforts to enhance corporate value by upgrading our business portfolio, while executing the previously released shareholder return plan and accelerating short-term shareholder value enhancement at the same time."
LG Electronics said in a disclosure at the end of last year on the status of implementing its plan to enhance corporate value that "over the next two years, we will execute a 200 billion won shareholder return policy." As part of this policy, the latest treasury share buyback was carried out.
In July last year, LG Electronics retired all 761,427 common shares it had acquired within the distributable profit range. The remaining treasury shares currently held (1,749 common shares and 4,693 preferred shares) are scheduled to be fully retired after approval at this year's general shareholders meeting. The company also plans to retire the shares purchased this time in line with future policy.
Through a disclosure that day, LG Electronics said, "As part of additional shareholder return policies, we aim to improve capital efficiency and increase per-share value through the acquisition of treasury shares, thereby enhancing market value." Typically, share buybacks reduce the number of shares outstanding, improving indicators such as earnings per share (EPS) and book value per share (BPS).
LG Electronics also disclosed its 2025 cash dividends. Including the interim dividends paid in Aug. last year, the 2025 dividends per share are set at 1,350 won for common shares and 1,400 won for preferred shares. The total dividends for 2025 amount to 243.9 billion won, including 90 billion won in interim dividends. In the previous year, the dividends per common share were 1,000 won, with a total dividends amount of 180.9 billion won.
Since 2024, LG Electronics has raised its payout ratio to 25% from 20% of consolidated net income attributable to owners of the parent and set the basic (minimum) dividends per share at 1,000 won. It is also paying interim dividends to support stable cash flow for shareholders and to enhance shareholder value.