SEOUL, May 30 (AJU PRESS) - Foreign ownership of LG Electronics has exceeded 31 percent for the first time in two years and eight months with the Korean conglomerate expanding into artificial intelligence markets.
As of Tuesday, foreign holdings in LG Electronics stood at 31.18 percent, according to Korean financial information provider FnGuide. Foreign investors made net purchases of about 200 billion won ($146.4 million) in May alone. Institutional investors also net purchased more than 190 billion won this month.
Previously, the highest foreign ownership of the company was 31.26 percent on Sept. 3, 2021. Until April 2024, LG Electronics experienced a negative net purchase trend from foreign investors. However, this month has seen a reversal, with foreign investors starting to acquire LG Electronics shares.
On Tuesday, a media outlet reported that LG Electronics would supply its heating, ventilation and air conditioning (HVAC) systems to large data centers in the United States, leading to a 13.4 percent surge in the stock price.
"As the spread of generative AI expands, the function of data centers is rapidly shifting from simple information storage to application and generation trends, consuming a huge amount of power to cool," Kim Dong-won, a researcher at KB Securities, said. He projected LG Electronics' HVAC sales are projected to grow at an annual average of 30 to 40 percent.
