Alphabiz - LG to Cancel Treasury Shares Worth KRW 350 Billion to Enhance Shareholder Value

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[Alpha Biz= Paul Lee] SEOUL, May 26 — LG Corp. announced it will cancel all treasury shares previously acquired within distributable profit limits as part of its shareholder return strategy.

The company said it will retire approximately 3.03 million common shares, representing 1.96% of total outstanding shares. Based on the latest closing price, the shares are valued at around KRW 350 billion, with cancellation scheduled for May 28.

Treasury share cancellation reduces the total number of outstanding shares, boosting earnings per share (EPS) and is considered a key shareholder return measure alongside dividends.

This follows LG’s earlier move to cancel half of its treasury shares last year, with plans to retire the remaining balance within the first half of this year.

LG also noted that it will continue to consider share buybacks using excess cash after dividends and investments, while maintaining a high dividend payout ratio. The company’s payout ratio reached 68% in 2025, with a five-year average of around 69%, underscoring its commitment to shareholder-friendly policies.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)