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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] LG Electronics has announced a new value-up program aiming to achieve a return on equity (ROE) of over 10% by 2027. The company is also considering stock buybacks and the cancellation of treasury shares as part of its strategy to enhance shareholder value.
On October 22, LG Electronics disclosed its mid- to long-term business strategy and shareholder return policies. The company aims to achieve its “7·7·7” targets by 2030: a 7% average annual growth rate, 7% operating profit margin, and a market value multiplier of 7 times. The company also set a goal of reaching KRW 100 trillion in revenue by 2030, excluding LG Innotek. The portfolio is expected to shift towards platform-based services, B2B, and new business ventures, with these areas anticipated to account for 52% of total sales and 76% of operating profits by 2030.
The value-up program includes a shareholder return policy that will be applied for the next three years, up to 2026. LG Electronics plans to allocate more than 25% of its consolidated net profit for shareholder returns.
To increase predictability for investors, the company will continue its minimum annual dividend of KRW 1,000 and semi-annual dividends, with plans to also explore quarterly dividends. Notably, LG Electronics is considering the cancellation and additional purchase of treasury shares to further enhance shareholder value.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
