LG Innotek "Achieving 15% ROE and Over 8 Trillion KRW Sales in Growth Businesses by 2030"

Value-Up Plan Announcement
Focus on Profitability Enhancement and Growth of Development Projects
Expansion of Shareholder Returns
Moon Hyuk-su: "Actively Communicate to Enhance Shareholder Value"

LG Innotek announced on the 22nd through a public disclosure that it aims to increase its return on equity (ROE) to over 15% and expand the sales scale of its growth businesses to more than 8 trillion KRW by 2030 to enhance corporate value.

LG Innotek

According to the disclosure, LG Innotek has established a corporate value enhancement (value-up) plan centered on improving ROE to over 15% by 2030, achieving sales of over 8 trillion KRW in growth businesses, expanding the dividend payout ratio to 20%, and strengthening ESG management. This plan focuses on increasing corporate value through profitability enhancement and mid- to long-term growth of growth businesses, as well as expanding shareholder returns.

First, LG Innotek has prominently set the goal of raising ROE to over 15% by 2030. Last year, LG Innotek recorded an ROE of 12%, maintaining a level higher than the average in the electrical and electronics industry. Going forward, the company plans to carry out company-wide activities to improve profitability, including strategic production site restructuring, cost competitiveness enhancement through artificial intelligence (AI) and digital transformation (DX), strengthening cash generation capability and asset operation efficiency, and reinforcing profit generation capabilities by business division.

In addition, LG Innotek aims to grow the sales scale of its growth businesses to over 8 trillion KRW. It plans to accelerate core autonomous driving businesses and foster new AI and semiconductor businesses such as flip chip ball grid array (FC-BGA) to advance its business structure and secure mid- to long-term growth engines.

In particular, the company will drive its business centered on core autonomous driving components such as vehicle communication, lighting, and sensing. It will accelerate market penetration with vehicle communication modules based on radio frequency (RF) design, sensing, and control technologies; vehicle lighting modules featuring differentiated surface light source technology; and autonomous driving cameras applying unique optical core technologies as vehicle sensing solutions.

In the substrate business sector, LG Innotek plans to actively promote strengthening strategic customer partnerships and diversifying sales structures based on competitive advantages in core technologies such as stacking and patterning. High value-added substrate products like FC-BGA will expand their customer base through enhanced technological competitiveness, solidifying their market position.

LG Innotek plans to expand shareholder returns through profitability enhancement and growth of growth businesses. It intends to gradually increase dividends, raising the current dividend policy?which maintains a payout ratio of over 10% of consolidated net income?to 15% by fiscal year 2027 and 20% by 2030.

Furthermore, LG Innotek is strengthening ESG management. In particular, it prioritizes responding to climate change and has established goals such as achieving '2030 RE100' and '2040 Carbon Neutrality,' which it is actively pursuing.

CEO Moon Hyuk-soo stated, "We will enhance corporate value through profitability improvement and growth of growth businesses, and continuously increase shareholder value by actively communicating with stakeholders including shareholders and investors."