LG Electronics to Implement Semiannual Dividends Starting This Year... Dividend Payout Ratio Also Increased

"Dividend Payout Ratio Improved by 5%, Raised to 25%"

LG Electronics will expand its dividend payout ratio to enhance shareholder value and will implement semi-annual dividends starting this year.

Cho Joo-wan, CEO of LG Electronics, is delivering a greeting at the regular shareholders' meeting held on the 26th at the LG Twin Tower in Yeouido, Seoul. Photo by Kim Hyung-min

On the morning of the 26th, Cho Joo-wan, CEO of LG Electronics, announced the new shareholder return policy for the next three years (fiscal years 2024?2026) at the regular shareholders' meeting held at the LG Twin Towers in Yeouido, Seoul, stating, "Starting next year, we will improve the dividend payout ratio by 5 percentage points and raise it to 25%."

Accordingly, the dividend payout ratio will be increased from the current 20% or more of net income based on consolidated financial statements to 25% or more of net income based on consolidated financial statements for the next three years (fiscal years 2024?2026). The dividend frequency will also increase from once a year to twice a year.

From next year, a minimum dividend amount will also be set. CEO Cho said, "The existing dividend policy was 100% linked to performance, and I feel that the dividend of around 800 KRW per common share over the past three years was insufficient," adding, "Starting next year, we will set the minimum dividend at 1,000 KRW."

Additionally, unlike before when the dividend amount was confirmed after the dividend record date (end of fiscal year), going forward, the dividend amount will be confirmed first, followed by setting the dividend record date.

CEO Cho stated, "Along with the shareholder return policy, we will consistently pursue business model innovation and accelerate new businesses to enhance corporate value, and all members, including the CEO, will work together to continuously increase shareholder value."