LG Electronics said on Wednesday it held a board meeting and approved a capital reduction plan to cancel 1,749 common shares and 4,693 preferred shares. The decision will be carried out after approval at a regular shareholders meeting on March 23.

The cancellation will reduce capital to 904.14 billion won from 904.17 billion won. The shares to be cancelled were acquired during the 2000 merger with LG Information & Communications and the 2002 transition to a holding company system. Outstanding common shares will fall to 162,884,638 from 162,886,387, and preferred shares to 17,181,299 from 17,185,992.

LG Electronics said it will cancel only shares it holds free of charge and there will be no change in the number of shares owned by ordinary shareholders. It added there will be no procedure to submit old share certificates or receive new ones. The company also cancelled in full 761,427 treasury shares acquired within the scope of distributable profit in July last year.

The company will hold its 24th regular shareholders meeting at 9 a.m. on March 23 at LG Twin Tower in Yeouido, Seoul. Agenda items include approval of financial statements, amendments to the articles of incorporation, cancellation of treasury shares, appointment of directors, appointment of audit committee members, and approval of the cap on directors' compensation. The director appointment item includes the new appointment of CEO Ryu Jae-cheol (류재철) as an inside director and the reappointment of outside director Seo Seung-woo (서승우) as an audit committee member.

An amendment to the articles of incorporation to apply cumulative voting will also be put on the agenda. Cumulative voting allows voting rights per share to be granted equal to the number of directors to be elected when appointing 2 or more directors, enabling shareholders to concentrate votes on a single candidate. If passed as a measure to protect minority shareholders' rights, it will apply starting with shareholders meetings convened after Sept. 10 this year.

LG Electronics said it will again pursue an open shareholders meeting this year under the themes of communication, notification and sharing. It plans to open the meeting venue to stakeholders such as market participants and journalists in addition to shareholders, and have top management share business strategy. The company began the approach in 2024 and this year marks the third year.

Electronic voting will be available from 9 a.m. on March 13 to 5 p.m. on March 22 through the Korea Securities Depository's electronic voting system. LG Electronics introduced electronic voting in 2021 to strengthen shareholders' voting rights.