'7% Growth Rate and Operating Profit Margin, 7x Corporate Value' Vision Presented
Positive Reviews on Transformation Beyond Home Appliances to Platform, B2B, and New Businesses
LG Electronics CEO Jo Joo-wan's '777 (7% annual growth rate, 7% operating profit margin, 7 times corporate value)' strategy and 2030 Future Vision, along with other value-up (corporate value enhancement) strategies, have been recognized by the capital market. The company received this year's 'Top IR Award' from the Korea IR Association. The market viewed LG Electronics' management activities positively as the company improved its business structure beyond home appliances to focus on platforms, business-to-business (B2B), and new businesses, while communicating sincerely with the market.
Jo Joo-wan, CEO of LG Electronics, is explaining the business portfolio innovation strategy at the 'Investor Forum' hosted by LG Electronics on August 21 at LG Science Park in Magok, Gangseo-gu, Seoul. [Photo by LG Electronics]
On the 17th, LG Electronics announced that it received the Financial Services Commission Chairman's Award, the highest award in the corporate category, at the '2024 Korea IR Awards' hosted by the IR Association. The award ceremony was held at the Korea Exchange Seoul Office in Yeouido, Yeongdeungpo-gu, Seoul. Kim Chang-tae, LG Electronics Chief Financial Officer (CFO, Vice President), attended the ceremony.
The Korea IR Award is given by the IR Association under the Korea Exchange since 2001 to companies and individuals who have contributed to the development of the capital market through effective IR activities. LG Electronics explained that the award is especially valuable as corporate value enhancement has recently become a key topic in the capital market. LG Electronics stated, "It is meaningful that our efforts to communicate with the market systematically and sincerely and to secure a stable investment base are being recognized by capital market regulatory bodies and experts from various fields."
Earlier, CEO Jo Joo-wan announced the company's mid- to long-term strategic direction, the 2030 Future Vision, in July last year. The vision aims to transform the business structure from home appliance-centered to platform-based services, B2B, and new businesses to achieve the 777 goals by 2030. LG Electronics has actively incorporated this vision into investor communications and consistently pursued activities to enhance corporate and shareholder value.
Over the year following the Future Vision announcement, CEO Jo Joo-wan, CFO Kim Chang-tae, and other executives engaged with the market through major events such as shareholder meetings, IR sessions for overseas investors, and investor forums. Starting this year, regular earnings conference calls have been elevated to CFO-led events. Previously, these events were led by IR officers and business division management officers.
LG Electronics emphasized that it has been more proactive and sincere than any other company in activities to enhance corporate and shareholder value. Early this year, LG Electronics announced a new three-year dividend policy, including raising the dividend payout ratio, setting a minimum annual dividend amount, and implementing semi-annual dividends. In August, it became the first among the top 10 domestic conglomerate affiliates to announce its intention to participate in value-up initiatives.
LG Electronics has continuously contributed to the development of the capital market by collaborating with the IR Association, sharing know-how on developing and operating the IR Activity Management System, a quantitative analysis tool for listed companies' IR activities, and giving lectures on IR activity directions related to Environmental, Social, and Governance (ESG). In recognition of these contributions, LG Electronics received the Korea IR Award Grand Prize in the corporate category in 2021 and the IR Association Chairman's Award (Excellence Award) last year.
CFO Kim Chang-tae said, "The company is pursuing future-oriented business structure changes and sustainable growth based on the clear goal of the 2030 Future Vision. We will continue to engage in proactive and sincere communication across all corporate activities to enhance investor trust."
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