[Featured Stock] LG Electronics Rises on Announcement of Shareholder Return Policy and Corporate Value Enhancement Plan

LG Electronics' stock price is on the rise. This is interpreted as a buying spree following the announcement of shareholder return policies and plans to enhance corporate value.

As of 9:26 AM on the 23rd, LG Electronics is trading at 98,500 KRW, up 2.28% from the previous day.

LG Electronics disclosed its mid- to long-term business strategy and shareholder return policies along with future plans to enhance shareholder value the day before. The specific strategic directions include ▲ platform-based services ▲ acceleration of business-to-business (B2B) transactions ▲ fostering new businesses as part of a portfolio transformation.

In particular, the company decided to allocate more than 25% of net income based on consolidated financial statements to shareholder returns. To increase predictability for investors, LG Electronics will continue the basic (minimum) dividend of 1,000 KRW set from this year and semi-annual dividends, and is also considering quarterly dividends in the future.

Ko Eui-young, a researcher at iM Securities, commented, "It is regrettable that the announcement did not confirm details such as whether to repurchase and retire treasury shares, the scale, or the period, but since the review has been formalized, positive decision-making is expected going forward."

Researcher Ko added, "Although there was no official mention regarding preferred shares, considering the company's favorable stance on shareholder return policies, interest in preferred shares is also valid."