LG Electronics announces first-ever treasury share cancellation

(Han Joo-hyung)

LG Electronics Inc. will retire treasury shares for the first time in its history as part of measures to enhance shareholder value.

The company said Thursday that its board of directors approved the cancellation of 761,427 treasury shares, which will be completed by the end of July 2025. The shares, valued at approximately 60.2 billion won ($44 million) based on the previous day’s closing price, account for about 0.5 percent of the company’s total outstanding common shares. The retirement will be carried out without reducing capital, using treasury stock acquired from distributable profits under board authorization.

LG Electronics also announced an interim dividend policy on the same day. The company will pay 500 won per share for both common and preferred shares, with August 8th, 2025, set as the record date and August 22nd as the payment date. The total dividend payout will amount to 90 billion won.

These measures are part of the “value-up” program introduced in December 2023, which aims to boost shareholder returns. LG Electronics has increased its dividend payout ratio from 20 percent to 25 percent of consolidated net profit since 2024 and has maintained a minimum base dividend of 1,000 won per share.

An LG Electronics spokesperson said the interim dividend is designed to provide shareholders with stable cash flows while enhancing shareholder value.

The LG Group has been stepping up shareholder-friendly initiatives across its affiliates. LG Uplus Corp. retired treasury shares worth 100 billion won earlier in 2025 and other listed group companies, including LG Chem Ltd., LG Energy Solution Ltd., and LG Display Co., are expected to follow suit with similar value-up measures.