"Facility Investment to Be Reduced by 1 Trillion KRW"
Strengthening Portfolio and Execution Capabilities
Shin Hak-cheol, Vice Chairman of LG Chem, announced at the regular shareholders' meeting on the 24th that the company will secure competitiveness through selection and concentration within the three major new growth businesses.
Shin Hak-cheol, Vice Chairman of LG Chem, is delivering a greeting at the "24th Regular General Meeting of Shareholders" on the morning of the 24th at LG Twin Towers in Yeouido, Seoul. Photo by LG Chem
At the regular shareholders' meeting held at the LG Twin Towers in Yeouido, Seoul, on the morning of the same day, Vice Chairman Shin said, "We will enhance our portfolio through qualitative growth of the three major new growth engines," adding, "We will prioritize within the three major new growth engines and increase competitiveness through selection and concentration."
In the battery materials sector, the company plans to strengthen its competitive edge based on technological capabilities, while in the sustainability sector, it will select and nurture areas with growth potential. In the new drug sector, it will pursue the acquisition of late-stage oncology assets.
He also revealed plans to shift to performance-oriented research and development (R&D). Vice Chairman Shin explained, "For efficient R&D, we will not only optimize internal resources but also accelerate external collaboration, artificial intelligence (AI), and digital transformation (DX) activities," adding, "We will systematize these efforts to lead to tangible business outcomes."
He continued, "After thoroughly analyzing all costs from a zero base, we will improve internal efficiency and secure financial soundness through priority adjustments for efficient investment and optimal resource allocation."
This is interpreted as an intention to adjust the scale of capital expenditures (CAPEX) to a reasonable level amid continued downturns in both petrochemicals and secondary battery materials. Vice Chairman Shin stated that the planned facility investment scale for this year (up to 2.7 trillion KRW) will be reduced by more than 1 trillion KRW.
Furthermore, he emphasized, "Following last year, we will make this year a 'year of execution' as well, proactively advancing portfolio enhancement, focusing on strengthening execution capabilities to secure differentiated competitiveness, and turning crises into opportunities to sustain growth."
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