LG Electronics will buy back 100 billion won of treasury shares to boost shareholder value. It also raised the dividend on common shares by 35 percent from a year earlier. LG Electronics disclosed the 100 billion won buyback on Jan. 29 after a board resolution. The buyback is equivalent to about 905,083 common shares and 189,371 preferred shares at the Jan. 28 closing price.

The decision is part of the implementation of a 200 billion won shareholder return policy over the next 2 years that it announced late last year. LG Electronics has previously bought back its own shares mainly to pay employee bonuses. This is its first buyback aimed at boosting shareholder value.

LG Electronics said it aims to improve market value by enhancing capital efficiency and increasing per-share value through the acquisition of treasury shares. Buying back shares reduces the number of shares in circulation and can improve profitability indicators such as earnings per share and book value per share.

It plans to cancel the shares bought back under its policy. LG Electronics cancelled all 761,427 common shares it bought within distributable earnings in July last year. The remaining treasury shares it holds, 1,749 common shares and 4,693 preferred shares, are scheduled to be cancelled in full after approval at this year's shareholders meeting.

LG Electronics also disclosed its 2025 cash dividend on the day. It set the dividend per share at 1,350 won for common shares and 1,400 won for preferred shares. The amount includes an interim dividend paid in August last year. The total dividend, including the 90 billion won interim dividend, is 243.9 billion won.

In the previous year, the dividend per common share was 1,000 won and the total dividend was 180.9 billion won. From 2024, LG Electronics raised its payout ratio from 20 percent to 25 percent of net income attributable to owners of the parent, based on consolidated financial statements. It set the basic minimum dividend per share at 1,000 won.