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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 2020 KRWUSD
Revenue30,076.51B25,490.99M
Gross Profit5,985.52B5,072.96M
Operating income1,798.15B1,524.00M
Income before tax934,349M791.89M
Net income406,079M344.16M
EBITDA4,070.88B3,450.23M
Diluted EPS6,670.615.65
Dividends Per Share10,0008.47
Total Assets41,388.89B38,100.79M
Total liabilities22,598.45B20,803.14M
Total equity18,039.12B16,606.02M
Operating cash flow5,841.56B4,950.94M
Currency in KRWCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 20,659.29B 25,698.01B 28,183.01B 27,353.07B 30,076.51B
Gross Profit 3,937.73B 5,455.48B 5,144.42B 4,425.92B 5,985.52B
Operating income 1,991.92B 2,928.45B 2,246.07B 825,415M 1,798.15B
Income before tax 1,659.82B 2,563.89B 1,940.04B 552,232M 934,349M
Net income 1,281.12B 1,945.28B 1,472.60B 342,523M 406,079M
EBITDA 3,328.61B 4,334.08B 3,733.33B 2,620.33B 4,070.88B
Diluted EPS 17,422 25,391.08 19,061.98 4,022.80 6,670.61
Dividends Per Share 5,000 6,000 6,000 2,000 10,000
Total Assets 20,487.06B 25,041.22B 28,944.13B 34,024.42B 41,388.89B
Total liabilities 6,436.09B 8,702.64B 11,622.00B 16,640.63B 22,598.45B
Total equity 13,937.35B 16,168.52B 17,083.04B 17,004.97B 18,039.12B
Operating cash flow 2,518.10B 3,182.86B 2,124.96B 3,121.10B 5,841.56B
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 17,806.82M 22,731.34M 25,608.86M 23,455.19M 25,490.99M
Gross Profit 3,394.04M 4,825.68M 4,674.54M 3,795.22M 5,072.96M
Operating income 1,716.89M 2,590.38M 2,040.92M 707.79M 1,524.00M
Income before tax 1,430.65M 2,267.90M 1,762.84M 473.53M 791.89M
Net income 1,104.23M 1,720.70M 1,338.10M 293.71M 344.16M
EBITDA 2,869.02M 3,833.73M 3,392.34M 2,246.92M 3,450.23M
Diluted EPS 15.01 22.45 17.32 3.44 5.65
Dividends Per Share 4.30 5.30 5.45 1.71 8.47
Total Assets 16,962.29M 23,390.98M 25,940.25M 29,421.44M 38,100.79M
Total liabilities 5,328.77M 8,129.13M 10,415.85M 14,389.41M 20,803.14M
Total equity 11,539.45M 15,103.00M 15,310.13M 14,704.46M 16,606.02M
Operating cash flow 2,170.42M 2,815.42M 1,930.88M 2,676.33M 4,950.94M

Valuation Measures

Dec 2020
PER123.52
ROA1.07%
ROE2.31%
Operating margin5.97%
Profit margin1.35%

Key executives

  • Vice 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 (7.8%)
  • LG Chem Ltd. (1.6%)
  • The Vanguard Group, Inc. (1.5%)
  • BlackRock Fund Advisors (1.5%)
  • Mirae Asset Global Investments Co., Ltd. (0.9%)
  • Samsung Asset Management Co., Ltd. (0.8%)
  • JPMorgan Asset Management (UK) Ltd. (0.7%)
  • BlackRock Advisors LLC (0.6%)
  • Fidelity Management & Research Co. LLC (0.6%)

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 Energy Solution Ltd.
  • LG Chem Ltd. /LCD Polarizer Bus/
  • LG Chem Wroclaw Energy Sp zoo
  • LG Chem Ltd. /Photoresist Business/
  • 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.
  • Ugimag Korea Co., Ltd.
  • Tianjin LG BOTIAN Chemical Co. Ltd.
  • LG Polycarbonate Ltd.
  • LG Chem Display Materials (Beijing) Co. Ltd.
  • Wuxi LG Chemical Co. Ltd.
  • LG Chem Ltd. (Japan)
  • LG Chemical (Guangzhou) Engineering Plastics Co. Ltd
  • LG Chem (Tianjin) Engineering Plastics Co. Ltd.
  • LG Chem HK Ltd.
  • Tianjin LG Bohai Chemical Co. Ltd.
  • LG Chem (Taiwan) Ltd.
  • LG Chem Poland SP zoo
  • LG-Dow Polycarbonate Ltd.
  • Ningbo LG Yongxing Chemical Co. Ltd.
  • LG Solar Energy, Inc.
  • LG Chem Trading Shanghai Co. Ltd.
  • LG Polymers India Pvt Ltd.
  • LG Energy Solution Michigan, Inc.
  • Kolon Industries, Inc. /Super Absorbent Polymer Ops/
  • LG Chem America, Inc.
  • Uniseal, Inc.

Competitors

  • BASF SE
  • Mitsubishi Chemical Holdings Corporation
  • Saudi Basic Industries Corp.
  • Dow, Inc.
  • DuPont de Nemours, Inc.
  • Asahi Kasei Corporation
  • LyondellBasell Industries NV
  • Linde plc
  • Air Liquide SA
  • Sumitomo Chemical Co., Ltd.
  • Eastman Chemical Company
  • AK Holdings, Inc.
  • Lotte Chemical Corp.
  • Benq Materials Corporation
  • Formosa Chemicals & Fibre Corporation
  • Trinseo SA
  • Aekyung Petrochemical Co., Ltd.
  • Hansol Chemical Co., Ltd
  • Oil Refineries Ltd.
  • Samyang Corporation
  • OCI Co., Ltd
  • Lotte Corp
  • CBAK Energy Technology, Inc.
  • Celxpert Energy Corporation
  • Enphase Energy, Inc.
  • Lumos Pharma, Inc.
  • USI Corporation
  • CHENG MEI MATERIALS TECHNOLOGY CORPORATION
  • Electrovaya Inc.
  • Kolon Plastics, Inc.
Last Updated on 2 Aug, 2021

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