LG Chem "Thorough Reflection... Precise Diagnosis of 40 Global Sites"

[Asia Economy Reporter Hwang Yoon-joo] LG Chem has recently launched an urgent one-month inspection of all 40 of its global business sites as a measure in response to recent incidents.

On the 26th, LG Chem announced that it will begin an urgent inspection prioritizing high-risk processes and facilities at all 40 global business sites (17 domestic and 23 overseas) by the end of June. Any improvements identified during the urgent inspection will be immediately addressed, and if it is difficult to take action within a short period, the operation of the relevant processes and facilities will be temporarily suspended until resolved.

LG Chem emphasized, "Through thorough reflection, we will reexamine everything from the ground up and devise fundamental measures to further enhance the trust of stakeholders in our business and environmental safety." This urgent and detailed inspection focuses on identifying all possible accident scenarios and establishing multiple layers of safety measures.

LG Chem also plans to conduct a detailed inspection by forming a task force composed of in-house environmental safety and process technology experts as well as external environmental safety specialized institutions. Currently, the selection process for external specialized institutions is underway.

Additionally, LG Chem intends to redefine environmental safety standards at a global top-tier level under the CEO's leadership, managing all global business sites not only to comply with local regulations but also to meet global standards.

To this end, a special management meeting will be held twice a month, chaired by the CEO, with participation from each business division head, CFO (Chief Financial Officer), CHO (Chief Human Resources Officer), and environmental safety officers. This meeting will implement ▲ progress checks on urgent and detailed inspections ▲ comprehensive process innovations from investment review to installation and operation stages ▲ fundamental improvements in environmental safety budgets, personnel, and evaluation systems.

First, LG Chem will establish an IT system in South Korea by the end of this year that can block any investment lacking complete safety assurance from the design stage, regardless of scale. However, overseas implementation is scheduled to be completed by the first half of next year.

In particular, this year, the focus will be on securing necessary specialized personnel and reorganizing domestic and overseas environmental safety-related organizations to ensure that the management policy of prioritizing environmental safety in all business activities is firmly practiced throughout the organization. Currently, LG Chem invests approximately 200 billion KRW annually in the environmental safety sector.

Shin Hak-cheol, Vice Chairman of LG Chem, stated, "We will never pursue any business without guaranteed environmental safety, and if it is judged that securing environmental safety is difficult even in currently operating businesses, we will consider withdrawal. Through thorough reflection, we will reexamine everything from the ground up and devise fundamental measures to further enhance the trust of stakeholders in our business and environmental safety."