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 | KRW | USD |
| Revenue | 51,864.88B | 40,139.94M |
| Gross Profit | 9,460.31B | 7,321.64M |
| Operating income | 2,995.69B | 2,318.46M |
| Income before tax | 2,858.76B | 2,212.49M |
| Net income | 1,820.91B | 1,409.26M |
| EBITDA | 6,391.70B | 4,946.75M |
| Diluted EPS | 23,675.24 | 18.32 |
| Dividends Per Share | 10,000 | 7.73 |
| Total Assets | 67,973.82B | 53,755.49M |
| Total liabilities | 30,492.69B | 24,114.42M |
| Total equity | 31,450.57B | 24,871.94M |
| Operating cash flow | 569,880M | 441.04M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 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 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 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 | |
| PER | 25.34 |
| ROA | 3.05% |
| ROE | 6.85% |
| Operating margin | 5.77% |
| Profit margin | 3.51% |
Management
- 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
Shareholders
- 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:http://www.lgchem.com
- Address: LG Twin Tower, 128 Yeoui-daero, Seoul, 07336, South Korea
- Phone: +82.2.3777.1114
Related Companies
- Lg Chem Ltd. /Diagnostics Unit/
- 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.
Competitors
- DuPont de Nemours, Inc.
- Mitsubishi Chemical Group Corporation
- BASF SE
- Merck & Co., Inc.
- Dow, Inc.
- Saudi Basic Industries Corp.
- Asahi Kasei Corporation
- LyondellBasell Industries NV
- Linde plc
- L'Air Liquide S.A.
- Huons Global Co., Ltd.
- Celltrion, Inc.
- HUMEDIX Co.LTD.
- Covestro AG
- Eastman Chemical Company
- UNION KOREA PHARM CO.,Ltd
- Lotte Chemical Corp.
- Anhui Wanwei Updated High-Tech Material Industry Company Limited Class A
- AEKYUNG CHEMICAL CO., LTD
- Trinseo PLC
- Formosa Chemicals & Fibre Corporation
- GL Pharm Tech Corp.
- OCI Holdings Company Ltd.
- Lotte Corp
- Celxpert Energy Corporation
- Paik Kwang Industrial Co., Ltd.
- Hansol Chemical Co., Ltd
- CT property Co., Ltd.
- Shinpoong Pharmaceutical Co., Ltd.
- Blivex Energy Technology Co., Ltd Class A
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