LG Electronics announces first-ever share buyback

(LG Electronics)

LG Electronics will repurchase 100 billion won ($70 million) worth of its own shares and raise its annual dividend by 35 percent as the company signals a more assertive shareholder return strategy.

Approved by its board on Thursday, the buyback includes 905,083 common shares and 189,371 preferred shares, based on the Jan. 28 closing price, according to a regulatory filing. LG said the repurchase is its first with an explicit shareholder value purpose and part of a previously disclosed two-year, 200 billion won return framework announced at the end of 2025.

In a separate disclosure, LG also confirmed a 2025 cash dividend of 1,350 won per common share and 1,400 won per preferred share, including the interim dividend paid in August. Total payouts for the year will rise to 243.9 billion won, up 35 percent from the previous year’s 180.9 billion won.

The company said it aims to “enhance capital efficiency and increase per-share value through treasury stock acquisition.”

In July 2025, LG had already canceled 761,427 treasury shares acquired within distributable profits. It currently holds a minimal balance of 1,749 common and 4,693 preferred treasury shares, which it plans to retire pending shareholder approval. The new repurchased shares may also be subject to future cancellation, depending on company policy.

LG last year raised its dividend payout ratio to 25 percent of net income attributable to controlling interests, up from 20 percent, and introduced a minimum annual dividend of 1,000 won per common share.