Muristek
LG headquarters in Seoul
South Korean conglomerate LG Corp., known as LG Group, announced on May 27 that it will buy back its own shares worth 500 billion won ($398.1 million) by end-2024. The holding company said it will entrust Korea’s KB Securities Co. with the share buyback. The conglomerate also announced its updated plan for dividends to investors. In 2020, the company decided to distribute more than 50% of net profits on the basis of separate financial statements, within the range of the dividend income the company earns from investments. On Friday, LG said it will keep the distribution policy regardless of the range of dividend income. This is in a bid to add flexibility in securing dividend sources even if there are temporary changes in its subsidiaries’ earnings, LG added. Over the past three years, LG has distributed more than 60% of net profits, except one-time revenues, on a separate financial statement basis. It also distributed 448.9 billion won early this year, 65% of the net profits of 2021, to shareholders. The company pledged to increase shareholder value by expanding distribution, as well as invest in new businesses and build a base of sustainable growth, an LG official said. This aligns with the updated dividend policy, which is to improve transparency on dividend payment as part of the company’s environmental, social and governance (ESG) performance.LG stock closed at 74,700 won on Friday with a 0.95% rise. The stock's 52-week high price was 122,500 won on May 27 of 2021.By Shin-Young Parknyusos@hankyung.comJihyun Kim edited this article.
Most Read