LG Uplus announced on July 29 that it will buy back an additional ₩90 billion (approximately $62.1 million) worth of its own shares to strengthen its shareholder return policy, while simultaneously investing ₩1.3 trillion (approximately $896.4 million) in the second phase of its Paju Artificial Intelligence Data Center (AIDC). The decision, approved by the board of directors, represents a strategic move aimed at achieving two objectives: enhancing shareholder value and expanding its AI infrastructure business.
Through a regulatory filing, LG Uplus disclosed that it resolved to enter into a trust agreement for the acquisition of ₩90 billion (approximately $62.1 million) in treasury shares. The contract period runs from August 14 to February 13 of next year, with approximately 6.15 million shares to be acquired based on the previous day’s closing price of ₩14,620 (approximately $10.08). The company stated it plans to actively utilize the repurchased shares to enhance shareholder value, including through future cancellation.
This share buyback extends the corporate value enhancement initiative, known as the “Value-up Plan,” announced in November 2024. Since unveiling the plan, LG Uplus has consistently pursued share buyback and cancellation policies. In August last year, the company canceled approximately ₩100 billion (approximately $69.0 million) in treasury shares based on book value, and in May this year, it canceled all ₩80 billion (approximately $55.2 million) worth of shares that had been additionally acquired since last year. Including this latest ₩90 billion buyback, LG Uplus will have repurchased a total of ₩270 billion (approximately $186.2 million) in shares since the Value-up Plan was announced, with ₩180 billion (approximately $124.1 million) of that amount slated for cancellation.
As part of its shareholder return policy, the interim dividend was also increased. LG Uplus set this year’s interim dividend at ₩270 (approximately $0.19) per share, an increase of approximately 8% compared to the previous year, bringing the total dividend payout to approximately ₩114.6 billion (approximately $79.0 million). The dividend yield stands at 1.8%. The record date is August 13, with payment scheduled for August 28.
The large-scale investment in AI infrastructure also stands out. LG Uplus decided to invest approximately ₩1.3 trillion (approximately $896.4 million) for the second phase of the Paju AIDC. The investment period runs from August 1 to November 30, 2028.
Currently under construction in Paju, Gyeonggi Province, the Paju AIDC is a 200MW (megawatt)-class data center, the largest in the Seoul metropolitan area. It is regarded as the core hub of “One LG” AI infrastructure, bringing together LG Electronics’ liquid cooling solutions, LG Energy Solution’s high-performance UPS (uninterruptible power supply) batteries, and LG Uplus’s 27 years of data center operational expertise.
Notably, the first server building, scheduled for completion in June next year, is already fully contracted, validating the explosive market demand for AI infrastructure. LG Uplus plans to use the additional investment to construct the second and third server buildings and proceed with related facility investments, while also commencing design work for a fourth server building. “The purpose of the investment is to build new AIDC capacity in response to growing customer demand,” the company stated, adding that it “plans to proactively respond to expanding AI infrastructure demand and accelerate business expansion.”
Meanwhile, LG Uplus also participated as a member of the steering committee of the “AIDC Alliance,” a public-private partnership officially launched on the same day. The alliance is a consultative body involving relevant government ministries, including South Korea’s Ministry of Science and ICT, and approximately 400 industry, academic, and research institutions, aimed at strengthening the competitiveness of the AI data center industry and promoting it as a national strategic industry. LG Uplus is expected to play an active role in fostering the AI infrastructure ecosystem as a representative of the private sector.