1. LG Uplus Announces KRW 80 Billion Share Buyback: What’s Happening?

On July 21, 2025, LG Uplus announced that it has entered into a trust agreement with NH Investment & Securities to repurchase KRW 80 billion worth of its own shares. The contract period is one year, from August 4, 2025, to August 3, 2026.

2. Why the Buyback?

Share buybacks are typically implemented to boost stock prices and enhance shareholder value. Amid concerns over slowing Q1 earnings, this buyback is likely intended to alleviate investor anxieties and restore market confidence. Furthermore, there’s potential for further value creation through share cancellation, leading to increased earnings per share (EPS).

3. What Does This Mean for the Stock Price?

The share buyback is likely to be a positive catalyst for the stock price in the short term. However, investors should also consider factors that could negatively impact LG Uplus’s stock performance, such as slowing Q1 earnings, intensifying competition in the wireless business, and increasing exchange rate volatility. A long-term perspective requires careful monitoring of post-buyback price movements and investor reactions.

4. What Should Investors Do?

  • • Review the details of the buyback plan (timing, price, method, cancellation plans)
  • • Analyze market expectations and reactions through analyst reports and other sources
  • • Analyze the strategies and market share changes of competing telecommunication companies
  • • Analyze LG Uplus’s long-term financial outlook, considering changes in the external environment

Rather than focusing solely on short-term price fluctuations, investors should make informed decisions based on a comprehensive assessment of the company’s fundamentals and the evolving external environment.