LG Electronics to pay interim dividend of W89.7b, cancel all buyback shares this year

LG Electronics is pressing ahead with shareholder returns through an interim dividend and a share cancellation.

Following a board resolution Wednesday, the company disclosed its schedule for a 2026 interim dividend. The record date is Aug. 13, with a cash dividend of 500 won per share for both common and preferred shares. The total payout amounts to about 89.7 billion won ($61.2 million), with payment set for Aug. 28.

LG Electronics has paid an interim dividend each year since 2024, setting a base minimum of 1,000 won per share annually to provide shareholders with stable cash flow and enhance shareholder value.

The company also disclosed the termination of a trust agreement with NH Investment after completing the 100 billion won buyback it announced in January. The shares acquired consist of 588,589 common shares and 141,840 preferred shares.

All acquired treasury shares are set to be canceled by year-end. Share cancellations reduce the number of shares in circulation, boosting per-share value metrics such as earnings per share and book value per share — a widely used form of shareholder return.

The moves are part of LG Electronics' shareholder return policy under its corporate value enhancement plan, known as the value-up program, announced at the end of last year. The company has committed to 200 billion won in shareholder returns over two years. Following this year's 100 billion won buyback, it plans to carry out an additional 100 billion won in shareholder returns next year.