LG Uplus CI

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LG Uplus Corp. unveiled a plan on Friday to enhance its corporate value, including a mid- to long-term financial goal and shareholder return policy.

The company will aim to raise its return on equity (ROE) to 8~10 percent based on its consolidated financial statement and boost shareholder return rate to up to 60 percent.

ROE, a key profitability metric calculated by dividing net income by total equity, reflects how effectively a company generates profit from its equity.

The shareholder return ratio, which measures the portion of profits returned to shareholders through dividends and share buybacks, is calculated by dividing these returns by net income.

As of last year, LG Uplus reported an ROE of 7.5 percent and a shareholder return ratio of 43.2 percent.

As part of its mid- to long-term strategy, the company aims to accelerate its transformation into an AI transformation (AX) company by restructuring its business around high-margin areas and integrating artificial intelligence (AI) across all operations to boost productivity and optimize resource allocation.

In the business-to-business segment, LG Uplus plans to develop its AI data center business, targeting an annual revenue growth rate of 7–9 percent in data center operations.

In the business-to-consumer segment, the company aims to enhance profitability by adopting a digitalized distribution strategy, seeking to increase its net profit margin from 5.4 percent last year to 6–6.5 percent.

To strengthen its financial stability, LG Uplus announced plans to reduce its debt ratio from 130 percent as of last year to around 100 percent before the anticipated rollout of 6G technology.

The company also plans to improve cash flow to bolster financial soundness.

Additionally, LG Uplus is considering retiring approximately 100 billion won ($71.4 million) worth of treasury shares purchased in 2021 to enhance shareholder returns.

“We will continue to closely monitor market indicators and feedback to maximize value for the company and its shareholders,” said Chief Financial Officer Yeo Myung-hee.