Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

RiskRisk RewardReward– LG Uplus- LGCorpUplus(032640.KS)Corp (032640.KS)

Solid earnings recovery and resulting higher shareholder returns keep us OW.

PRICE TARGET W18,000 OVERWEIGHT THESIS

Base case, sum-of-the-parts valuation. ▪Supported by management's focus on

Telecom operations: discounted cash flow (DCF). Key assumptions: WACC 7.4%, terminal profitability, and benefiting from headcount

growth rate 1%. reductions in 2025, we see a clear earnings

Hellovision stake: market value proportionate to its 50% equity stake. recovery playing out in 2026.

forecast higher growth from W18,800 ▪We

Enterprise, led by the company's new data

Consensus Price Target Distribution W15,300.00 W22,000.00 center cluster in Paju. MS PT

growth and management's moreSource: Refinitiv, Morgan Stanley Research Mean Morgan Stanley Estimates ▪Earnings

proactive stance on share buybacks pave the

way for higher shareholder returns.

▪Valuation attractive at 9x 2026e PER and

RISK REWARD CHART ~3x EV/EBITDA, while offering near 7% TSR

based on our estimates.

KRW

W21,000W21,000(+47.68%)W21,000(+47.68%)(+47.68%)

Consensus Rating Distribution

20000 74% Overweight

W18,000W18,000(+26.58%)W18,000(+26.58%)(+26.58%) 26% Equal-weight

0% Underweight

15000 W14,220W14,220W14,220 MS Rating

Source: Refinitiv, Morgan Stanley Research

W13,000W13,000(-8.58%)W13,000(-8.58%)(-8.58%)

Risk Reward Themes

5000 Secular Growth: Positive

Self-help: Positive

View descriptions of Risk Rewards Themes here

JUN '25 DEC '25 JUN '26 JUN '27

Key: Historical Stock Performance Current Stock Price Price Target

BULL CASE W21,000 BASE CASE W18,000 BEAR CASE W13,000

13x bull case 2026e EPS 11x base case 2026e EPS 8x bear case 2026e EPS