Seoul, Nov 22 LG Corp, the holding company of LG Group, said on Friday it will cancel its own shares worth 500 billion won ($356.8 million) by 2026 as part of a corporate value enhancement programme.
The company will cancel approximately 6.1 million treasury stocks, repurchased in June under its 2022 buyback programme, by 2026, according to LG Corp.'s value-up plan.
The plan also includes a semi-annual dividend payment program starting next year, reflecting a stronger focus on shareholder returns, reports Yonhap news agency.
To drive profitability, LG Corp. plans to concentrate investments on future growth engines, such as artificial intelligence, biotechnology and clean technologies.
At the same time, four LG Group affiliates -- LG Display Co., LG Innotek Co., LG Chem and LG Energy Solution -- also announced their own value-up programmes to develop new businesses and bolster financial health.
LG Display, a flat screen supplier to Apple Inc., aims to achieve a turnaround in operating profit next year by focusing on high-end OLED technology and implementing cost-saving measures. The company posted 643.7 billion won in operating losses for the first nine months of the year.
LG Innotek, an electronic component manufacturing affiliate, targets 8 trillion won in sales from new businesses, including vehicle parts and semiconductor substrates.
Leading chemicals maker LG Chem plans to reach 50 trillion won in sales by 2030, with a focus on new sectors, including pharmaceuticals and sustainability-related businesses.
EV battery giant LG Energy Solution said it aims to double its 2022 sales of 33.7 trillion won by 2028 through customer diversification in electric vehicles (EVs) and expansion into non-EV business sectors.
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