1. LF’s KRW 3 Billion Stock Repurchase: What’s Happening?

LF has decided to repurchase its own shares worth KRW 3 billion, representing 0.55% of its total market capitalization. This strategic decision aims to stabilize stock prices and enhance shareholder value.

2. Why the Buyback?: Background and Implications

LF maintains stable growth with a diversified business portfolio spanning fashion, finance, food, broadcasting, and data centers, supported by a robust financial structure (current ratio of 162% and debt-to-equity ratio of 72% as of June 2025). This buyback is interpreted as a move to reward shareholders based on stable performance and solidify market confidence. The plan to repurchase KRW 15 billion worth of shares annually from 2024 to 2026, along with a minimum dividend policy of 20% of operating profit or KRW 500 per share, demonstrates LF’s proactive commitment to shareholder return.

3. The Buyback’s Impact: Future Outlook

In the short term, the buyback announcement is expected to create positive momentum for the stock price. In the long term, considering LF’s solid fundamentals and growth potential, value investing is worth considering. The data center business, scheduled to commence operations in October 2025, has strong potential to become a new growth driver.

4. Action Plan for Investors

  • Short-term investors: Closely monitor stock price movements following the buyback announcement to identify short-term profit opportunities.
  • Long-term investors: Consider long-term investment based on LF’s stable business portfolio and growth potential. However, continuous monitoring of macroeconomic uncertainties such as interest rate hikes, exchange rate fluctuations, and weakening consumer sentiment, as well as changes in the fashion market, is necessary.