LG Uplus Corp. unveiled plans to boost profitability and shareholder returns through an artificial intelligence-driven transformation of its business model.
The South Korean telecom carrier targets return on equity of up to 9% and aims to increase its shareholder payout ratio to 60%, according to its new “Value-Up Plan.” The company’s ROE stood at 7.5% last year, with investor returns at 43.2%.
To achieve these goals, LG Uplus will restructure around high-margin segments and deploy AI across operations. The B2B division will emphasize data center growth, targeting annual revenue expansion of up to 9% in that segment.
The carrier plans to reduce its debt ratio to 100% from 130% before the rollout of 6G technology. As an initial step toward higher shareholder returns, it will cancel about 100 billion won ($77 million) of treasury shares acquired in 2021.
CFO Yeom Myung-hee said the company would monitor market indicators while implementing its transition to an AI-focused operation.
The strategic overhaul comes as South Korean telecom operators face pressure to improve returns amid saturated mobile markets and rising network costs.
