Shin Hak-cheol: "Supply Chain Issues Controlled by Dual Sourcing"

Interview with the President of Korea Society
Activation of Emergency Management System, Securing Supply

Vice Chairman Shin Hak-cheol of LG Chem (left in the photo) is interviewing Thomas Byrne, Chairman of the Korea Society.

[Asia Economy Reporter Choi Dae-yeol] Shin Hak-cheol, Vice Chairman of LG Chem, stated that the company is responding by securing dual and triple supply sources to resolve supply chain issues.

In an interview released on the 9th with Thomas Byrne, Chairman of the Korea Society, Vice Chairman Shin said, "Supply chain issues related to raw materials or parts sourced from other countries can be controlled through dual supply plans rather than relying on a single supplier." LG Chem has been operating an emergency management system called ‘Project A Plus,’ proactively securing inventory of raw materials and parts while thoroughly inspecting potential weak points within the tightly woven supply chain.

Since early last year, logistics and transportation problems have emerged worldwide due to the COVID-19 pandemic, making supply chain security a critical management issue across the chemical industry and manufacturing sectors. Vice Chairman Shin said, "We mobilized the entire team for over six months to develop a systematic plan to respond when key raw materials and parts are in short supply," adding, "We examined where these (raw materials and parts) are sourced from, whether there are alternative options, and the potential risks of one component causing disruption compared to others."

According to the U.S. chemical industry media C&EN, LG Chem ranked 7th among global chemical companies, climbing five places compared to a year earlier. Among the top 10 global chemical companies, LG Chem was the only one to increase its performance year-over-year. The UK’s Financial Times also included LG Chem among the top 100 global companies that grew during the pandemic. Vice Chairman Shin previously worked at 3M and has served as LG Chem’s CEO since 2019.

Vice Chairman Shin emphasized that challenges such as supply chain issues or carbon neutrality, which may seem disadvantageous, should be viewed not as crises but as new opportunities. He said, "Although we talk about decarbonization and supply chain issues, since we face the same constraints, there is a tremendous opportunity to differentiate ourselves from competitors," adding, "We should not blame external circumstances but rather use them as opportunities to overcome challenges."