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Process Industries

LG Chem Ltd.

Company Background

LG Chem is a leading chemical company in South Korea. Its origins can be traced back to Lucky Chemical Industrial, founded in 1947, of the LG group. LG Chem started as a producer of materials for cosmetics and has grown to become the pillar of the LG group, surpassing LG Electronics in terms of both market capitalization and earnings.

The LG group has shifted to a holding company system and LG Chem's biggest shareholder is LG Corp. While LG Chem is managed by a top executive who has risen within the company, key decisions such as changes in the top management and large acquisition deals are considered by LG Corp. Chairman Koo Bon-moo, owner and manager of the group.

LG Chem chalks up the majority of its sales from the petrochemical division, which has ethylene plants and produces products such as superabsorbent polymers used to make paper diapers and sanitary goods.

The lithium-ion battery business is also drawing attention as a locomotive of LG Chem's growth. The company supplies batteries for electric cars and hybrids to many automakers in the U.S., Europe and China, including Daimler of Germany and Great Wall Motor. It also engages in joint battery development. In addition, LG Chem handles electronic components such as polarizers for liquid crystal display panels.

Business Summary

LG Chem Ltd. manufactures petrochemicals, IT & electronic materials and energy solution materials. It operates through through the following business segments: Petrochemicals, IT & Electronic Materials, Batteries. The Petrochemical division offers naphtha cracking centers and polyolefins, synthetic rubbers and specialty polymers, polyvinyl chloride, acrylonitrile-butadiene-styrene and engineering plastics, acrylates and plasticizers. The IT & Electronic Material division provides optical and display materials namely polarizers, phosphors, organic light emitting diode, photosensitive materials for liquid crystal display; printed circuit materials such as flexible materials, halogen free materials, integrated circuit packaging materials, epoxy resin system materials, high speed materials and build-up materials; toners such as color toners, black laser printer toners and black copier toners. The Battery division provides lithium-ion cylindrical batteries, lithium-ion polymer batteries, lithium-ion prismatic batteries, medium and large batteries. The company was founded in January 1947 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2021 KRWUSD
Revenue42,654.72B37,247.84M
Gross Profit10,804.16B9,434.63M
Operating income5,024.44B4,387.54M
Income before tax4,897.26B4,276.48M
Net income3,370.74B2,943.47M
EBITDA7,861.79B6,865.24M
Diluted EPS47,113.2541.14
Dividends Per Share12,00010.47
Total Assets51,135.30B43,016.02M
Total liabilities27,925.31B23,491.32M
Total equity21,693.78B18,249.24M
Operating cash flow5,509.81B4,811.39M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 25,698.01B 28,183.01B 27,353.07B 30,058.87B 42,654.72B
Gross Profit 5,455.48B 5,144.42B 4,425.92B 5,988.58B 10,804.16B
Operating income 2,928.45B 2,246.07B 825,415M 1,803.10B 5,024.44B
Income before tax 2,563.89B 1,940.04B 552,232M 942,254M 4,897.26B
Net income 1,945.28B 1,472.60B 342,523M 413,984M 3,370.74B
EBITDA 4,334.08B 3,733.33B 2,620.33B 4,075.37B 7,861.79B
Diluted EPS 25,391.08 19,061.98 4,022.80 6,670.61 47,113.25
Dividends Per Share 6,000 6,000 2,000 10,000 12,000
Total Assets 25,041.22B 28,944.13B 34,024.42B 41,388.89B 51,135.30B
Total liabilities 8,702.64B 11,622.00B 16,640.63B 22,598.45B 27,925.31B
Total equity 16,168.52B 17,083.04B 17,004.97B 18,039.12B 21,693.78B
Operating cash flow 3,182.86B 2,124.96B 3,121.10B 5,840.83B 5,509.81B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 22,731.34M 25,608.86M 23,455.19M 25,476.04M 37,247.84M
Gross Profit 4,825.68M 4,674.54M 3,795.22M 5,075.55M 9,434.63M
Operating income 2,590.38M 2,040.92M 707.79M 1,528.20M 4,387.54M
Income before tax 2,267.90M 1,762.84M 473.53M 798.59M 4,276.48M
Net income 1,720.70M 1,338.10M 293.71M 350.86M 2,943.47M
EBITDA 3,833.73M 3,392.34M 2,246.92M 3,454.03M 6,865.24M
Diluted EPS 22.45 17.32 3.44 5.65 41.14
Dividends Per Share 5.30 5.45 1.71 8.47 10.47
Total Assets 23,390.98M 25,940.25M 29,421.44M 38,100.79M 43,016.02M
Total liabilities 8,129.13M 10,415.85M 14,389.41M 20,803.14M 23,491.32M
Total equity 15,103.00M 15,310.13M 14,704.46M 16,606.02M 18,249.24M
Operating cash flow 2,815.42M 1,930.88M 2,676.33M 4,950.32M 4,811.39M

Valuation Measures

Dec 2021
PER13.05
ROA7.28%
ROE16.96%
Operating margin11.77%
Profit margin7.90%

Key executives

  • Chairman & Chief Executive Officer: Hak Cheol Shin
  • President: Okdong Son
  • Chief Financial Officer & Director: Dong-Seok Cha
  • CTO & President-Executive Board: Ki-Soo No
  • Managing Director: Hyang-Mok Lee

Shareholders

  • LG Corp. (33.3%)
  • National Pension Service of Korea (6.7%)
  • The Vanguard Group, Inc. (1.6%)
  • Invesco Advisers, Inc. (1.6%)
  • BlackRock Fund Advisors (1.5%)
  • BlackRock Investment Management (UK) Ltd. (1.0%)
  • Schroder Investment Management (Hong Kong) Ltd. (0.9%)
  • Norges Bank Investment Management (0.8%)
  • Global X Management Co. LLC (0.7%)
  • Veritas Asset Management LLP (0.7%)

Contact Details

  • Website:http://www.lgchem.com
  • Address: LG Twin Tower, 128 Yeoui-daero, Seoul, 07336, South Korea
  • Phone: +82.2.3777.1114

Related Companies

  • LG Chem TK Kimya Sanayi ve Ticaret Ltd. Sti.
  • LG Chem Life Science Innovation Center, Inc.
  • LG Chem Nanjing Energy Solution Co., Ltd.
  • LG Chem Fund I LLC
  • LG Chem (Guangzhou) Information & Electronics Materials
  • LG Chem Hai Phong engineering Plastics LLC
  • LG Chem Mexico SA de CV
  • LG Chem Hai Phong Vietnam Co., Ltd.
  • LG Chem Life Sciences (Thailand) Ltd.
  • LG Chem Life Sciences (Beijing) Co., Ltd.
  • LG Chem (Chongqing) Engineering Plastics Co., Ltd.
  • LG NanoH2O LLC
  • LG Chem Japan Co., Ltd.
  • LGC Petrochemical India Pvt Ltd.
  • LG Energy Solution Ltd.
  • LG Chem Ltd. /LCD Polarizer Bus/
  • LG Chem Wroclaw Energy Sp zoo
  • LG Chem Ltd. /Photoresist Business/
  • LG Chem (China) Investment Co., Ltd.
  • Ningbo Zhenhai LG Yongxing Trade Co., Ltd.
  • LG Chem (HUIZHOU) Petrochemical Co., Ltd.
  • Haengboknuri Co., Ltd.
  • LG Chem Ltd. /Pesticide Bus/
  • LG Chemical Tianjin Plant
  • Daejung Em Co., Ltd. /Cathode Material Bus/
  • LG Hausys Ltd. /Adhesive Film Div/
  • Nanjing LG Chem New Energy Battery Co., Ltd.
  • Tianjin LG BOTIAN Chemical Co., Ltd.
  • LG Polycarbonate Ltd.
  • LG Chem Display Materials (Beijing) Co., Ltd.

Competitors

  • BASF SE
  • Mitsubishi Chemical Holdings Corporation
  • Merck & Co., Inc.
  • Saudi Basic Industries Corp.
  • Dow, Inc.
  • Asahi Kasei Corporation
  • DuPont de Nemours, Inc.
  • LyondellBasell Industries NV
  • Linde plc
  • Air Liquide SA
  • Sumitomo Chemical Co., Ltd.
  • HUMEDIX Co.LTD.
  • Huons Global Co., Ltd.
  • Covestro AG
  • Eastman Chemical Company
  • Lotte Chemical Corp.
  • Trinseo Public Limited Company
  • AEKYUNG CHEMICAL CO., LTD
  • Benq Materials Corporation
  • Formosa Chemicals & Fibre Corporation
  • Samyang Corporation
  • OCI Co., Ltd
  • Celxpert Energy Corporation
  • Kum Yang Co., Ltd.
  • Microvast Holdings, Inc.
  • Hansol Chemical Co., Ltd
  • Oil Refineries Ltd.
  • Paik Kwang Industrial Co., Ltd.
  • Lotte Corp
  • Optimax Technology Corporation
Last Updated on 24 Jun, 2022

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