Kim Dong-choon, Chief Executive Officer (CEO) of LG Chem, announced that the company will foster materials for semiconductors, mobility and robotics, as well as anti-cancer new drugs, as its future core businesses.
On the 22nd, at LG Twin Towers in Yeouido, Seoul, CEO Kim held a town hall meeting with LG Chem executives and employees and explained this strategy. This is interpreted as a strategy to diversify the company’s profit structure toward high-growth industries at a time when profitability in its traditional chemical business is slowing. Profitability in the petrochemical industry has significantly deteriorated due to supply glut from China and intensifying competition in the sector.
Through the development of new business areas, LG Chem has set a goal of achieving a double-digit operating margin by 2030. To this end, it plans to invest a total of KRW 15 trillion in research and development (R&D) by 2035. In particular, it intends to allocate 70% of its R&D resources to materials in the semiconductor, mobility and robotics sectors, which have been designated as future core businesses, and to anti-cancer new drugs. For this purpose, it has established a new business development organization under the direct control of the CEO. Within the scope of available funding, it also plans to pursue external growth strategies such as mergers and acquisitions (M&A) in parallel.
By business segment, the company will focus on securing competitiveness in advanced packaging materials in the semiconductor field. It plans to develop high value-added products such as packaging adhesives and glass substrates, and to enhance its competitiveness in existing substrate materials to expand the scale of its electronic materials business to KRW 2 trillion by 2030. In the mobility and robotics sectors, it will expand its business domains into electric vehicle materials and structural materials for robots.
In the anti-cancer new drug segment, LG Chem plans to enhance commercialization potential through technology transfer and M&A, and to nurture this area as a mid- to long-term growth engine. Kim Dong-choon, President of LG Chem, stated, “While strengthening the competitiveness of our existing businesses, we will concentrate our capabilities on future growth pillars and leap forward as a ‘technology-strong converting company.’”
Park Jong-min 기자
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
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