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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] LG Electronics CEO Cho Joo-wan has shown his commitment to enhancing corporate value by making a significant purchase of company shares.
According to the Financial Supervisory Service's electronic disclosure system on Wednesday, CEO Cho acquired 2,500 common shares of LG Electronics through on-market transactions. The purchase price per share was KRW 80,000, bringing the total transaction value to KRW 200 million.
With this latest purchase, Cho's total holdings in company shares have increased to 7,873 shares, up from his previous holding of 5,373 shares. Since taking office as CEO in 2023, he has acquired 3,000 shares over two separate transactions.
Before his tenure as CEO, Cho had also made stock purchases. In 2011, while serving as head of LG Australia, he acquired 372 shares through the employee stock ownership plan. Later, during his tenure as North America Regional Head in 2017 and 2018, he purchased an additional 550 and 590 shares, respectively. In 2019, he further increased his holdings by acquiring 861 shares through on-market transactions.
It is commonly interpreted that a CEO's purchase of company stock signals a commitment to responsible management. Particularly during periods of stock price decline, such moves by company executives—who have deep insight into internal business conditions—serve as a signal to the market of their confidence in stabilizing the stock price and boosting corporate value.
On the same day, Park Won-jae, LG Electronics' IR Executive Director, also disclosed his purchase of 500 preferred shares. The average acquisition price was KRW 37,550 per share.
Park had previously acquired 3,005 common shares and 1,000 preferred shares last year. With this latest transaction, his total holdings now stand at 3,005 common shares and 1,500 preferred shares.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
