LG to cancel $357 million in shares by 2026

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LG to cancel $357 million in shares by 2026

Published: 24 Nov. 2024, 17:09

JIN EUN-SOO
[email protected]

LG Group's headquarters in Seoul [YONHAP]

LG Corp., the holding company of LG Group, said Friday it will cancel its own shares worth 500 billion won ($356.8 million) by 2026 as part of a corporate value enhancement program.

The company will cancel approximately 6.1 million treasury stocks, repurchased in June under its 2022 buyback program, by 2026, according to its value-up plan.

The plan also includes a semiannual dividend payment program starting next year, reflecting a stronger focus on shareholder returns.

To drive profitability, LG Corp. plans to concentrate investments on future growth engines, such as artificial intelligence, biotechnology and clean technologies.

At the same time, four LG Group affiliates — LG Display, LG Innotek, LG Chem and LG Energy Solution — also announced value-up programs to develop new businesses and bolster financial health.

LG Display, a flat screen supplier to Apple, aims to achieve a turnaround in operating profit next year by focusing on high-end organic light-emitting diode technology and implementing cost-saving measures. The company posted 643.7 billion won in operating loss for the first nine months of the year.

Yonhap