LG Corp: Updated NAV Analysis Amid Ongoing Corporate Value Up Program in Korea

• Our NAV analysis of LG Corp suggests an implied market cap of 16.3 trillion won or 103,781 won per share which is 16% higher than current share price.

• For holdco discount, we used a 50% holdco discount. If investors perceive improvement in value (such as through corporate governance improvements), the holdco discount on LG Corp would decline.

• LG Corp's shares are up 5.9% in the past six months, outperforming all the major LG Group related companies including LG Chem, LG H&H, LG Electronics, and LG Energy Solution.

LG Corp NAV Valuation Analysis

Our NAV analysis of LG Corp suggests an implied market cap of 16.3 trillion won or 103,781 won per share which is 16% higher than current share price.The biggest portion of the NAV is LG Corp's 33.3% stake in LG Chem which is worth 10.3 trillion won. Other important value drivers include LG Corp's 33.7% stake in LG Electronics (5.3 trillion won), 34% stake in LG H&H (1.9 trillion won), and 50% stake in LG CNS (private market estimated value of 2.5 trillion won).

For holdco discount, we used a 50% holdco discount. If investors perceive improvement in value (such as through corporate governance improvements), the holdco discount on LG Corp would decline.

LG Corp Shareholding structure (Source: Company data)