Shin Hak-cheol Visits Village Affected by LG Chem India Accident, Promises "Additional 20 Billion Won Support"

Humanitarian Measures Before Local Court Ruling

LG Chem has launched an additional support program worth approximately 20 billion KRW for local residents ahead of a court ruling related to the gas leak accident that occurred four years ago at LG Polymers in India.

LG Chem stated, "On the 9th, Vice Chairman Shin Hak-cheol, CFO President Cha Dong-seok, and Petrochemical Business Division Head Noh Guk-rae, along with other top executives, met with residents of villages near the accident site and Andhra Pradesh Chief Minister Chandrababu Naidu in Visakhapatnam, Andhra Pradesh, southern India." They added, "At this meeting, Vice Chairman Shin expressed deep condolences to all those affected by the LG Polymers accident and decided to expand support to approximately 5,000 households in the villages near the accident site." The amount to be supported this time is about 1.2 billion rupees (approximately 20 billion KRW). The average monthly income per person in Andhra Pradesh is about 300,000 KRW.

LG Polymers will provide living support funds to villages around the factory in consultation with the state government. They will operate a health tracking and follow-up examination center and expand the designated hospital treatment items to a total of 15. A new foundation will be established locally in India to carry out Corporate Social Responsibility (CSR) activities that enable village residents to receive continuous recovery and care. LG Chem explained that these measures reflect the demands of the village residents.

LG Chem conveyed that the reason top executives visited in person was Vice Chairman Shin’s intention to provide humanitarian support needed by the villagers even before the local court ruling.

LG Chem said, "Vice Chairman Shin heard that the villagers’ difficulties are increasing due to abnormal weather and economic hardships amid delays in the local trial," and added, "After internal discussions, he decided to visit India directly to provide prompt support." Vice Chairman Shin reportedly said regarding the announcement of this additional support plan, "Even before the trial results are out, we will do our best to provide humanitarian aid that can offer practical help to the local residents."

On the 9th, Shin Hak-cheol, Vice Chairman of LG Chem, who visited India, shook hands with Chandrababu Naidu, Chief Minister of Andhra Pradesh, India, after explaining plans to expand support.
[Photo by LG Chem]

The LG Polymers accident, which occurred during the COVID-19 pandemic lockdown in May 2020, was caused by the leakage of process raw materials that had been stored in tanks inside the factory for a long time. The state government immediately paid a total of 375 million rupees (approximately 5.83 billion KRW) in consolation money to the affected residents. LG Polymers has paid more than 20 billion KRW in deposits to date in accordance with orders from the relevant authorities. The ruling on responsibility and compensation procedures is currently underway in the local court.

The LG Polymers site was shut down and access to the factory was suspended following a local court order to close the manufacturing plant immediately after the accident. LG Polymers has maintained employment for its workers over the past four years, and employees wishing to work at the new factory have relocated to Sri City to continue their work. When additional hiring occurs at the Sri City factory, preference will be given to those from the original factory area.

LG Polymers has conducted recovery activities in the affected areas, including providing food and hygiene supplies, donating water trucks, village cleanup activities, and water and soil testing. To date, more than 5,000 people have received medical services at designated hospitals. In 2021, LG Polymers delivered 80 tons of zeolite, a key material needed for oxygen supply, to Andhra Pradesh, where COVID-19 was rapidly spreading, using three chartered planes.

LG Chem is about to complete the construction of a final process plant producing 50,000 tons per year of ABS (high value-added plastic) products in Sri City, which is approximately 780 km away from LG Polymers.

LG Chem stated that it may consider additional expansion investments if ABS demand increases in the future. They also plan to actively discuss investments in safe and eco-friendly businesses encouraged by the Andhra Pradesh state government on the existing LG Polymers site.