LG Group has decided to invest approximately 100 trillion won domestically over the next five years. This figure represents a slight decrease from previous investments, with half of it allocated for artificial intelligence (AI), biotechnology, and batteries.
On March 27, LG Corporation, the holding company of LG Group, held its 62nd regular shareholders’ meeting at LG Twin Towers in the Yeouido area of Seoul. All five agenda items, including the reappointment of Chairman Koo Kwang-mo as an inside director, were passed.
During the shareholders’ meeting, the company unveiled its medium to long-term investment plan. LG Group announced its intention to invest 102 trillion won in the domestic market from 2024 to 2028. The company explained that the figure accounts for 65 percent of LG Group’s global investment scale during the same period.
Half of the domestic investment amount will be allocated to future growth sectors. LG announced its plan to allocate 50 percent of the domestic investment to growth areas such as batteries, automotive components, and next-generation displays, as well as future technologies like AI, biotechnology, and clean technology. Additionally, approximately 55 percent of the announced investment funds will be injected into research and development (R&D). The company stated, “We plan to foster the domestic market as a core base for core material R&D and manufacturing, such as smart factories.”
The investment amount announced this time is slightly lower compared to the past. In 2022, LG Group held a strategy briefing where it announced plans to invest 106 trillion won domestically from 2022 to 2026. At that time, the company explained that 40 percent of this amount would be allocated to future growth sectors, while 48 trillion won would be invested in R&D. While the total investment amount has decreased from 106 trillion won to 102 trillion won this time, the concentration of investment in future growth sectors and R&D has increased.
On the other hand, LG Corporation’s dividend payout ratio has been significantly adjusted upward. According to the approved financial statements for last year at this shareholders’ meeting, the dividend per share for this year increased by 100 won for common shares, to 3,100 won, and by 100 won for preferred shares, to 3,150 won, compared to the previous year. Despite a significant decrease in net income attributable to controlling shareholders from 1.98 trillion won in 2022 to 1.26 trillion won last year, the dividends have been increased. As a result, the dividend payout ratio has jumped from 23.97 percent to 38.35 percent, which is more than double compared to 17.50 percent in 2021.