LG Uplus pledges to secure funds for fresh growth

LG Uplus holds its general shareholders' meeting at the company's headquarters in central Seoul, Friday. / Courtesy of LG Uplus

By Kim Bo-eun

Hwang Hyeon-sik, elected as LG Uplus CEO Friday, vowed to lead the telecom company's growth in new sectors by securing additional funds.

Hwang was elected a member of LG Uplus' board at the company's general shareholders' meeting held the same day. He was elected CEO at the board meeting that followed.

"The plan is to create a business structure that enables qualitative growth and secure funds for new growth," Hwang said.

"We will improve profitability in the content and solutions businesses, focusing on improving customer value, and use excess funds to secure new growth engines and return more to shareholders.”

His remarks come at a time local telecom firms are turning their eyes to new sources of profit as the local market for conventional telecom services has reached saturation.

Hwang said LG Uplus will seek out new B2C growth engines in advertising, data and subscription services. As for B2B businesses, the company is seeking to pursue smart factory and smart mobility projects.

The new CEO added that the mobile service provider will seek to secure "hardcore fans." LG has consistently ranked third among the three major telecom companies here.

Three new outside directors were appointed at the shareholders' meeting. They are Korea University professor Yoon Sung-soo, venture capital firm Yellowdog CEO Je Hyun-joo and Hanyang University professor Kim Jong-woo. The three were also appointed members of the audit committee.

Je's appointment has improved gender diversity at board level at the telecom firm, as LG Uplus previously did not have any female board members.

The company also raised its dividend payout rate to 43.4 percent from 39.2 percent last year. Dividend payout per share was set to 450 won, up 50 won from the previous year.

LG Uplus introduced a digital voting system for the first time this year. Shareholders were able to take part in the shareholders' meeting that was held both online and offline.