Myeong Nohyun Presents Plans to Enhance Shareholder Value at General Meeting
Explains It Is an "Investment Golden Time," Not a Dilution of Corporate Value
Myeong Nohyun, Vice Chairman of LS, stated, "When pursuing an initial public offering (IPO), we will carefully ensure that shareholder value is not compromised and will enhance corporate value to return benefits to shareholders." This is interpreted as an effort to address concerns following the recent simultaneous decline in affiliate stock prices amid worries about dual listings.
At the 56th regular shareholders' meeting held on the 27th at LS Tower in Yongsan, Seoul, Vice Chairman Myeong said, "I would like to take this opportunity to listen to the voices of our shareholders," acknowledging that communication regarding financial strategies and shareholder return policies, including affiliate listings, had been insufficient. He introduced ▲ cases of LS Group's listing efforts and the necessity of attracting external funds ▲ plans to increase net profit to maximize shareholder value ▲ and plans to enhance communication.
Myung Nohyun, Vice Chairman of LS, is giving a greeting at the 56th Annual General Meeting of Shareholders held on the 27th at LS Tower in Yongsan, Seoul. Photo by LS
Within LS Group, affiliates such as Essex Solutions, LS Power Solution (formerly KOC Electric), and LS E-Link are considering fundraising to respond to the boom in the power industry. Vice Chairman Myeong emphasized that they are currently in the "investment golden time" to secure market leadership in high-growth businesses. He also explained that LS E-Link is entering new business by establishing a newly created corporation that did not previously exist, while Essex Solutions and LS Power Solution have acquired businesses not previously held through mergers and acquisitions (M&A).
Expectations that unlisted affiliates within the group would pursue listings recently led to a simultaneous decline in affiliate stocks. From an investor's perspective, dual listings of parent and subsidiary companies could potentially dilute the value of the existing listed companies. Vice Chairman Myeong repeatedly explained that this concern would be alleviated by enhancing market competitiveness through strategic growth rather than diluting the value of the parent company, stating, "We will ensure that shareholder value is not compromised when pursuing IPOs of affiliates."
Myung Nohyun, Vice Chairman of LS, is giving a greeting at the 56th Annual General Meeting of Shareholders held on the 27th at LS Tower in Yongsan, Seoul. Photo by LS
LS plans to maximize shareholder value by raising the return on equity (ROE) on controlling shareholders' net profit from 5.1% as of the end of 2024 to 8%. To achieve this, the company intends to secure competitive advantages in its core electric and power businesses and strengthen its leading position in the global market. Additionally, it aims to increase business attractiveness and achieve high evaluations in the stock market through technology development and investment in new growth businesses such as secondary battery materials, submarine cable investments, and overseas expansion of electric vehicle charging solutions.
Furthermore, as part of its shareholder return strategy, LS plans to increase dividends by more than 5% annually to enhance long-term shareholder value. It aims to increase dividends by more than 30% by 2030 to provide direct benefits and will consider interim dividends within company resources in addition to regular dividends to realize additional returns.
To strengthen shareholder communication, LS will institutionalize corporate briefings at least twice a year and actively engage with institutions, media, and analysts to reflect shareholders' voices in corporate policies.
Vice Chairman Myeong Nohyun said, "We will continue to respect shareholders more and pursue co-growth with many stakeholders, which is the most fundamental value of a company," adding, "Starting with this shareholders' meeting, we will do our best to improve the company's profitability and grow corporate value to return that value to shareholders."
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