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LG Electronics announces 2027 target of 10 percent ROE

Published: 22 Oct. 2024, 18:24

JIN EUN-SOO
[email protected]

The LG Electronics headquarters in Yeouido, western Seoul [NEWS1]

LG Electronics announced Tuesday it would reach a return on equity (ROE) rate of at least 10 percent by 2027 as part of its "value-up program" aimed at elevating corporate value.

This adds to the electronics company's previous announcement that it would reach 7 percent in annual growth, operating profit margin and its EBITDA (earnings before interest, taxes, depreciation, and amortization) rate by 2030.

"LG Electronics believes that setting a clear target and carrying out continuous growth to achieve that target is the best way to elevate corporate value," LG Electronics said in a release Tuesday.

"In that sense, LG Electronics is consistently pushing for a business portfolio transition into a futrure-oriented business portfolio from a consumer electronics company under our mid to long-term Future Vision 2030."

LG Electronics' transition centers on expanding platform-based services and business-to-business models as well as delving into brand-new businesses. The company expects these three areas to account for 52 percent of its entire revenue and 76 percent of its operating profit by 2030.

The value-up program also includes a 25 percent of shareholder dividend payout plan, which will be carried out twice a year.

BY JIN EUN-SOO [[email protected]]