LG Corp. Corporate Governance Report: Active Share Buybacks and Stable Dividends Enhance Shareholder Value, Strengthened Board Independence and Internal Controls
LG Corp. completed a 500 billion won share buyback and cancelled approximately 6.06 million shares (about 3.9% of total shares) as of May 2026, significantly enhancing shareholder value. The cancellations were executed in two equal tranches in September 2025 and May 2026, preventing equity dilution and boosting earnings per share.
The dividend policy targets a payout ratio of at least 60% of standalone net profit excluding non-recurring items. For fiscal 2025, it paid 3,100 won per common share and 3,150 won per preferred share. Interim dividends were introduced in 2025, improving predictability of shareholder returns.
On corporate governance, the company complied with all 15 key indicators. It separated the roles of CEO and board chair, appointed an independent director as board chair, and composed the audit committee entirely of independent directors. Committees including the Internal Transaction Committee and ESG Committee are actively managing conflicts of interest and sustainability.
Internal controls include enterprise-wide risk management, compliance management, internal accounting controls, and disclosure management. The company has a chief compliance officer and an ESG committee overseeing core compliance risks, ensuring proactive risk management.
Shareholder communication is robust with quarterly earnings releases, analyst briefings, NDRs, and conference calls. The company provides English disclosures and maintains a comprehensive IR website to ensure fair access to information.
[AI Summary]LG Corp.'s governance report reaffirms its strong shareholder return policy through share buybacks and stable dividends, along with enhanced board independence and internal controls. These factors are positive signals for long-term value creation and a potential reduction in the conglomerate discount.