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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 2022 KRWUSD
Gross Profit9,460.31B7,321.64M
Operating income2,995.69B2,318.46M
Income before tax2,858.76B2,212.49M
Net income1,820.91B1,409.26M
Diluted EPS23,675.2418.32
Dividends Per Share10,0007.73
Total Assets67,973.82B53,755.49M
Total liabilities30,492.69B24,114.42M
Total equity31,450.57B24,871.94M
Operating cash flow569,880M441.04M
Currency in KRWCurrency in USD

Historical Data

 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 28,183.01B 27,353.07B 30,058.87B 42,599.28B 51,864.88B
Gross Profit 5,144.42B 4,425.92B 5,988.58B 10,801.78B 9,460.31B
Operating income 2,246.07B 825,415M 1,803.10B 5,026.37B 2,995.69B
Income before tax 1,940.04B 552,232M 942,254M 4,898.63B 2,858.76B
Net income 1,472.60B 342,523M 413,984M 3,372.13B 1,820.91B
EBITDA 3,733.33B 2,620.33B 4,075.37B 7,861.76B 6,391.70B
Diluted EPS 19,061.98 4,022.80 6,670.61 47,113.25 23,675.24
Dividends Per Share 6,000 2,000 10,000 12,000 10,000
Total Assets 28,944.13B 34,024.42B 41,388.89B 51,135.30B 67,973.82B
Total liabilities 11,622.00B 16,640.63B 22,598.45B 27,925.31B 30,492.69B
Total equity 17,083.04B 17,004.97B 18,039.12B 21,693.78B 31,450.57B
Operating cash flow 2,124.96B 3,121.10B 5,840.83B 5,509.81B 569,880M
 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 25,608.86M 23,455.19M 25,476.04M 37,199.43M 40,139.94M
Gross Profit 4,674.54M 3,795.22M 5,075.55M 9,432.55M 7,321.64M
Operating income 2,040.92M 707.79M 1,528.20M 4,389.23M 2,318.46M
Income before tax 1,762.84M 473.53M 798.59M 4,277.69M 2,212.49M
Net income 1,338.10M 293.71M 350.86M 2,944.68M 1,409.26M
EBITDA 3,392.34M 2,246.92M 3,454.03M 6,865.21M 4,946.75M
Diluted EPS 17.32 3.44 5.65 41.14 18.32
Dividends Per Share 5.45 1.71 8.47 10.47 7.73
Total Assets 25,940.25M 29,421.44M 38,100.79M 43,016.02M 53,755.49M
Total liabilities 10,415.85M 14,389.41M 20,803.14M 23,491.32M 24,114.42M
Total equity 15,310.13M 14,704.46M 16,606.02M 18,249.24M 24,871.94M
Operating cash flow 1,930.88M 2,676.33M 4,950.32M 4,811.39M 441.04M

Valuation Measures

Dec 2022
Operating margin5.77%
Profit margin3.51%


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


  • LG Corp. (33.3%)
  • National Pension Service of Korea (7.3%)
  • The Vanguard Group, Inc. (2.2%)
  • Invesco Advisers, Inc. (1.9%)
  • BlackRock Fund Advisors (1.5%)
  • Norges Bank Investment Management (1.3%)
  • Mirae Asset Global Investments Co., Ltd. (1.0%)
  • BlackRock Investment Management (UK) Ltd. (0.9%)
  • Schroder Investment Management (Hong Kong) Ltd. (0.9%)
  • BlackRock Advisors (UK) Ltd. (0.7%)

Contact Details

  • Website:
  • Address: LG Twin Tower, 128 Yeoui-daero, Seoul, 07336, South Korea
  • Phone: +82.2.3777.1114

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Last Updated on 25 Sep, 2023

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