LG Chem Extraordinary General Meeting 'No Surprises'... "Battery Spin-off IPO Schedule Undecided"

From Young Investors in Their 20s and 30s to Elderly in Wheelchairs Attend
Individual Investors Voice Complaints... LG Chem "Committed to Enhancing Shareholder Value"
"LG Energy Solution (Tentative Name) IPO Undecided"

[Asia Economy Reporter Hwang Yoon-joo] "I came directly to the general meeting of shareholders to oppose the physical division. From a shareholder's perspective, a spin-off by way of a human division is the right approach," "I opposed the physical division through electronic voting and came in person."

There was no surprise at the LG Chem extraordinary general meeting of shareholders. Despite opposition from individual investors and the National Pension Service, LG Chem's decision to spin off its battery business division was approved.

Earlier, when LG Chem's board decided to split the battery business, individual investors strongly opposed it, saying it "damages shareholder value." The National Pension Service also expressed opposition two days before the general meeting, drawing attention to the extraordinary meeting.

LG Chem had planned to start guiding shareholders from 8 a.m. for the 9 a.m. extraordinary general meeting, but moved the entry time forward by about 30 minutes because individual investors began arriving around 7:30 a.m. Due to concerns over COVID-19, attendance was limited, and about 80 investors actually attended the meeting.

In preparation for the expected influx of shareholders, a long waiting line was set up and temporary extra space was arranged, but the meeting venue was calm. Contrary to expectations, there were no disturbances such as protests by individual investors. A diverse group of investors attended, ranging from young people in their 20s and 30s to elderly people in their 70s, including a woman in her 60s who came in a wheelchair.

Individual investor Bae Gyu-seong said, "I oppose the physical division," adding, "The stock price keeps falling, so I came in person. A spin-off by way of a human division is the right thing to do." Another individual investor said, "I don't know much about management, but from an individual investor's perspective, this split is a loss. I don't know how much influence I have since I don't own many shares, but I came to exercise my voting rights."

LG Chem Vice Chairman Shin Hak-cheol entered at 9:01 a.m., marking the start of the extraordinary general meeting. The meeting was expected to last less than an hour but ended at 10:08 a.m. An LG Chem official explained, "It was delayed because there were many questions and answers from individual investors."

Investors' main interest was the timing of the initial public offering (IPO) of the newly established company. Vice Chairman Shin and other LG Chem executives reportedly said, "There has been much talk about the IPO of the new battery company, but no specific schedule has been set."

Meanwhile, at the extraordinary general meeting, LG Chem recorded an attendance rate of 77.5% and an approval rate of 82.3% (based on shares present), passing the physical division of the battery business division. With the approval of the spin-off plan, LG Energy Solution, the newly established company dedicated to the battery business, is scheduled to officially launch on December 1. This spin-off is a physical division in which LG Chem will own 100% of the shares of the unlisted new battery company created by the split.