LG Uplus has announced a plan to increase its shareholder return rate to a maximum of 60%. As part of this effort, the company is considering the cancellation of treasury stocks valued at approximately 100 billion won. On the 22nd, LG Uplus disclosed its “Value Up Plan,” which includes mid- to long-term financial goals, achievement strategies, and shareholder return plans.
The plan is based on past financial indicators and an analysis of domestic and international industry peers. LG Uplus aims to raise its Return on Equity (ROE) to 8-10%, up from 7.5% last year. ROE is a key profitability indicator showing how much profit a company generates from its shareholders’ equity.
Additionally, the company targets a shareholder return rate of up to 60%, which measures how much profit is returned to shareholders through dividends and stock buybacks. Last year, LG Uplus’s shareholder return rate was 43.2%.
To achieve these goals, LG Uplus plans to accelerate its transition to an “AX (AI Transformation) Company,” restructuring its business model to focus on high-profit sectors and integrating AI across all business areas to enhance productivity and resource allocation efficiency.
In the B2B sector, LG Uplus will focus on growing AI data centers (DC) as a new growth driver, aiming for an annual IDC (Internet Data Center) revenue growth rate of over 7-9%. In the B2C sector, the company seeks to enhance profitability with a digital-based distribution strategy, aiming to improve its net profit margin from 5.4% last year to 6-6.5%.
The company’s financial health improvement plan includes reducing its debt ratio from 130% last year to 100% by the time 6G is expected to be introduced, improving cash flow and financial stability. LG Uplus also considers the flexible purchase and cancellation of treasury stocks, including the potential cancellation of previously acquired stocks worth about 100 billion won.
Youngmyung Heo, CFO and CRO of LG Uplus, stated, “We will continue to closely monitor market indicators and feedback to maximize both corporate and shareholder value.”