230 Million Won Scale Insider Buying... Full Effort to Diversify Business Portfolio
Jo Joo-wan, CEO of LG Electronics, made a large purchase of the company's shares ahead of the first-quarter earnings announcement next month. Marking his second year as CEO, this move appears to demonstrate his commitment to responsible management as well as a strong determination to enhance corporate and shareholder value.
According to the Financial Supervisory Service's electronic disclosure system on the 30th, Jo purchased 2,000 common shares on the 29th, the settlement date. The purchase price per share was 113,600 KRW, totaling 227.2 million KRW. As a result, Jo's total holdings of company shares increased to 4,373 shares, including the previously held 2,373 shares.
Jo initially acquired 372 shares through the employee stock ownership plan in 2011 while serving as head of the Australian branch. During his tenure as North America regional head in 2017 and 2018, he additionally purchased 550 and 590 shares respectively. In 2019, he also bought 861 shares on the market.
This recent purchase is particularly significant as it was made during a period when the stock price had risen more than 30% compared to the beginning of the year. LG Electronics' stock price, which closed at 86,400 KRW on January 2, has steadily increased and recently maintained levels in the 110,000 KRW range. The return rate during this period exceeds three times the KOSPI index's rise.
According to financial information provider FnGuide, LG Electronics' first-quarter consolidated operating profit consensus forecast has been revised upward by 15.2% from the estimate at the time of the fourth-quarter earnings announcement last year, reaching 1.0683 trillion KRW. This is attributed to the easing of burdens such as logistics and raw material costs, which had significantly impacted profitability.
Since his appointment, Jo has been focusing all efforts on advancing the business portfolio and securing a future-oriented business structure. At the company-wide War Room, which has been operating since the end of last year, he repeatedly emphasized the need to achieve an appropriate level of performance despite prolonged recession, from the perspective of business advancement beyond short-term cost reduction and efficiency.
Following visits to North America and Europe earlier this year, he visited subsidiaries in Latin America, including Brazil and Mexico, this month to urge improvements in operational resilience on the ground.
It is reported that Jo spent over 130 hours on flights for global on-site management during the first quarter of this year. Assuming the statutory working hours of 52 hours per week, this accounts for nearly 20% of the total working hours of 676 hours for the entire first quarter.
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