Dividend Policy (As of December 15, 2023)

Along with the rapid growth of our subsidiary, LG Energy Solution, our investments have been focused on growing our three future growth engines: Battery materials, Sustainability business, and New drugs development. These investments are aimed at increasing our revenue from KRW 31 trillion in 2022 to KRW 70 trillion by 2030 (excluding LG Energy Solution).

(Source : May 2023, CEO presentation)

However, timely investments are needed to lay the foundation for not only the battery business but also the three future growth engines to achieve this.
The scale of our investments on a consolidated basis, which includes LG Energy Solution, continues to increase every year, and an annual CAPEX of more than 10 trillion KRW is needed for the foreseeable future, including FY2023 (consolidated-basis).

Accordingly, we would like to announce the following dividend policy for the next three years (FY2023~ FY2025), a period of concentrated investments.

[Dividend Policy]

  • Dividends are determined by comprehensively considering investment for growth, cash flow, financial structure, and dividend stability.
  • For the next three years (FY2023~FY2025), intensive investments are needed in the three future growth engines (battery materials, sustainability business, and new drugs), thus, we aim to set the dividend payout ratio at 20% or higher based on consolidated net income (excluding one-time non-recurring income).
  • Once growth from these investments is realized in earnest, we will strive to maximize shareholder return by delivering greater performance.

Dividends for each fiscal year shall be finalized through the resolution by the Board of Directors and approval at the Annual General Shareholders Meeting, and we look forward to keeping you updated on our progress.

Dividend Summary for Last 10 Fiscal Years
(Face Value Per Share: 5,000 Won, Unit : KRW bn)
Dividend Summary for Last 10 Fiscal Years : 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, Consolidated Net income, Total dividends, Dividend Payout Ratio (%), DPR at face (%), : Common, : Preferred, Dividend per share (won), : Common, : Preferred, Dividend Yield Ratio (%), : Common, : Preferred
Division 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Consolidated Net income 313 1,473 1,945 1,281 1,153 868 1,266 1,495 2,138 2,158
Total dividends 154 460 460 368 331 295 295 295 295 295
Dividend Payout Ratio (%) 42.44 25.48 151.84 49.02 31.24 23.65 28.73 28.73 33.93 23.26
DPR at face (%) Common 200 240 200 40 120 120 100 90 80 80
Preferred 201 241 201 41 121 121 101 91 81 81
Dividend per share (won) Common 10,000 12,000 10,000 2,000 6,000 6,000 5,000 4,500 4,000 4,000
Preferred 10,050 12,050 10,050 2,050 6,050 6,050 5,050 4,550 4,050 4,050
Dividend Yield Ratio (%) Common 1.6 1.9 1.2 0.6 1.7 1.5 1.9 1.3 2.1 1.4
Preferred 3.4 4.0 2.7 1.2 3.1 2.5 2.8 1.8 2.8 2.6
*Net Profit attributable to Owners of the Parent Company