Yun Byeong-tae, Mayor of Naju, Visits LG Chem Headquarters... Proposes 'Attracting New Businesses'

Yoon Byung-tae, Mayor of Naju City, Jeollanam-do, has attracted attention by delivering a letter to LG Group proposing mutual development through attracting new businesses to the LG Chem Naju Plant.

According to Naju City on the 4th, Mayor Yoon visited the LG Chem headquarters building (LG Twin Towers East Building) located on Yeouidaero, Yeongdeungpo-gu, Seoul, in the morning and personally handed over the letter to Jung Jong-eun, Executive Director in charge of domestic and external cooperation at LG Chem, and Noh Geon-gyo, the plant manager of the Naju Plant.

Yoon Byung-tae, Mayor of Naju, visited LG Chem headquarters and delivered a proposal letter to attract new businesses.
[Photo by Naju City]

The headquarters visit was accompanied by Lee Jae-nam, Chairman of the City Council, representatives of residents from Songwol-dong, Naju, where the LG Chem Naju Plant is located, the head of the Job and Economy Division, and staff members.

According to Naju City, Mayor Yoon’s letter conveyed the concerns of local residents following the reduction of the production lines at the Naju Plant at the end of last year, and proposed LG Group-level investment and attraction of new businesses utilizing Naju’s industrial strengths, excellent transportation and logistics hub conditions, and corporate-friendly city infrastructure.

According to LG Chem Naju Plant, as of December 31 last year, the number of production plants was reduced from four (octanol, plasticizer, acrylic acid, adhesive) to three.

The reduction in production plants was explained as part of management efficiency measures in response to intensified global chemical industry competition, including China, and rising raw material prices.

In particular, due to the unique characteristic of the Naju Plant being the only inland facility, it faces limitations in transporting raw materials and finished products by rail, which has been cited as a main reason for reduced price competitiveness compared to other plants due to logistics costs.

Mayor Yoon Byung-tae said, “I empathize with the difficult management conditions of companies due to rapidly changing industrial trends at home and abroad,” and added, “I hope Naju City can overcome these difficult conditions together and gather wise insights for mutual development with LG Chem Naju Plant and, further, LG Group.”

Mayor Yoon actively appealed to LG management Naju’s large-scale visionary projects aimed at becoming a future advanced industry hub, including the creation of an innovation city following the relocation of 16 public institutions, the industry-academia-research cluster linked with Korea Energy University and KEPCO Energy New Technology Research Institute, the establishment of a national energy industrial complex, and plans to attract national large-scale research facilities such as artificial sun and ultra-high-power lasers.

In particular, he introduced the ‘EV·ESS Used Battery Recycling Industrialization Center,’ completed in 2022 in the Naju Innovation Industrial Complex, which performs performance diagnosis and evaluation of 1,000 electric vehicle batteries annually, and the ‘Battery Full Life Cycle Carbon Neutral Environmental Information Center,’ scheduled for completion in 2027, highlighting the future competitiveness of the battery industry market.

Mayor Yoon said, “Due to global carbon neutrality and energy transition, continuous growth in the electric vehicle market is expected,” and proposed, “I hope we can consider ways to combine Naju’s industrial base strengths with LG Group’s experience and technology to revitalize the used battery industry.”

He also emphasized, “This year, the city is fully committed to creating a corporate-friendly city to raise the pride of local companies, institutions, and workers, and to promote virtuous circulation of the local economy through additional investment and stable settlement,” and stressed, “We will support LG Chem Naju Plant in every possible way to become a representative company of the corporate-friendly city of Naju.”

Lee Jae-nam, Chairman of the City Council, said, “The news of partial reduction of the plant facilities was a great shock to the region at a time when Naju is developing day by day,” and added, “The Naju City Council expresses its regret and sorrow. We sincerely hope to open a bright future for Naju together and will actively cooperate and support so that Naju and LG Chem can grow together at the council level.”

Jeon, a resident representative of Songwol-dong who attended, said, “LG Chem is the only large corporation plant in Naju and has been a symbol of regional modernization,” and introduced the connection with the Naju Plant by saying, “For over 40 years, students born and raised in Naju have dreamed of joining a large corporation, and the plant employees have been warm neighbors through annual volunteer work for those in need.”

He continued, “There is great concern among residents due to the partial reduction of the plant’s production lines last year,” and requested, “We hope it remains as a strong partner of the local economy and a hometown company of Naju City until the end.”

Jung Jong-eun, Executive Director of LG Chem, said, “We are grateful to the citizens of Naju who support the LG Chem Naju Plant,” and added, “Although the petrochemical industry is facing difficult conditions, we will strive to find ways to coexist with the local community.”

Naju = Kim Yuk-bong, Honam Reporting Headquarters, Asia Economy baekok@asiae.co.kr