[Special Stock] LG Electronics Hits '100,000 Won' in a Month on News of LG Corporation's Share Buyback

Parent Company’s Share Buyback Drives Stock Price
Record-Breaking Q2 Earnings
Accelerating Future Growth Through Business Structure Transformation

LG Electronics has reclaimed the 100,000 KRW mark in about a month. The holding company's announcement of share buybacks appears to have influenced the stock price.

As of 9:15 AM on the 30th, LG Electronics is trading at 100,700 KRW, up 3.49% (3,400 KRW) from the previous day. This is the first time LG Electronics' stock price has exceeded 100,000 KRW since August 2. August 2 was the day when the sharp decline began just before the 'Black Monday' in domestic and international markets.

LG Corporation announced after market close the previous day that it will purchase LG Electronics and LG Chem shares worth 200 billion KRW and 300 billion KRW respectively. Based on the closing price on the 29th, this amounts to approximately 2,034,587 shares of LG Electronics. The acquisition method is open market purchases. The buyback will be conducted in two phases and is planned to be completed by the end of March next year. After the buyback, LG Corporation's stake in LG Electronics is expected to increase from the current 30.47% to 31.59%. Additionally, a plan to enhance corporate value, including the utilization of the repurchased shares, will be announced in the fourth quarter. LG Chem is trading at 322,000 KRW, up 0.47% (1,500 KRW).

LG Electronics is entering a period of major transformation. Recently, LG Electronics CEO Cho Ju-wan, who marked his 1,000th day in office, declared a 'business structure transformation.' The plan is to leap forward focusing on subscriptions, platforms, and B2B (business-to-business) in addition to the existing core device business.

LG Electronics recorded its highest quarterly performance ever in the second quarter of this year. Operating profit increased by 61.2% year-on-year to 1.196 trillion KRW. Seasonal demand growth and expansion of premium products in home appliances and air conditioning positively impacted the results.