SEOUL (ANN/THE KOREA HERALD) – Aiming to significantly boost its corporate value with a bold sales target of KRW100 trillion (approximately USD72.6 billion) by 2030, LG Electronics unveiled an ambitious mid-to-long-term strategy on Tuesday.
This strategic roadmap comes just two months after the company became the first among South Korea’s top 10 conglomerates to join the government’s Value-up Program.
In a regulatory filing, the home appliance leader reaffirmed its commitment to the “Triple 7” strategy, which outlines three key targets: achieving a seven per cent annual growth rate in sales, maintaining a seven per cent operating profit margin, and reaching a valuation that is seven times its EBITDA each year until 2030.
To meet these goals, LG plans to strengthen its platform-based services and expand its business-to-business capabilities, particularly in the heating, ventilation, and air conditioning (HVAC) sector, as well as in automotive parts.
The platform services will include enhancements to its web operating system and the development of smart home systems, with the company also exploring new business opportunities.
LG anticipates that its efforts in these three focus areas will pay off substantially, with expectations that by 2030, they will contribute to 52 per cent of total sales and 76 per cent of operating profits.
This would mark a notable increase from their current contribution of 39 per cent of revenue and 55 per cent of operating profit.
The company has also set a target of achieving a return on equity (ROE) of over 10 per cent by 2027, reflecting its commitment to financial growth and shareholder value.
To further enhance investor confidence, LG has pledged to allocate at least 25 per cent of its consolidated net profit for shareholder returns, based on the portion attributable to equity holders of the parent company, excluding one-off non-operating gains.
In a bid to offer greater predictability for investors, LG will maintain a minimum dividend of KRW1,000 per share and continue its semi-annual dividend payments.
The company also revealed it is considering additional shareholder-friendly measures, such as the cancellation of treasury shares and potential share buybacks.
With this strategic plan, LG Electronics aims to secure a stronger position in the global market, leveraging innovation and investor engagement to achieve its ambitious 2030 vision.
