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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
Revenue51,864.88B40,139.94M
Gross Profit----
Operating income2,995.69B2,318.46M
Income before tax2,812.55B2,176.72M
Net income2,195.51B1,699.18M
EBITDA----
Diluted EPS----
Dividends Per Share12,0009.28
Total Assets67,973.82B53,755.49M
Total liabilities----
Total equity31,450.57B24,871.94M
Operating cash flow----
Currency in KRWCurrency in USD

Historical Data

 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 28,183.01B 27,353.07B 30,058.87B 42,654.72B 51,864.88B
Gross Profit 5,144.42B 4,425.92B 5,988.58B 10,804.16B --
Operating income 2,246.07B 825,415M 1,803.10B 5,024.44B 2,995.69B
Income before tax 1,940.04B 552,232M 942,254M 4,897.26B 2,812.55B
Net income 1,472.60B 342,523M 413,984M 3,370.74B 2,195.51B
EBITDA 3,733.33B 2,620.33B 4,075.37B 7,861.79B --
Diluted EPS 19,061.98 4,022.80 6,670.61 47,113.25 --
Dividends Per Share 6,000 2,000 10,000 12,000 12,000
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 --
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 --
 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 25,608.86M 23,455.19M 25,476.04M 37,247.84M 40,139.94M
Gross Profit 4,674.54M 3,795.22M 5,075.55M 9,434.63M --
Operating income 2,040.92M 707.79M 1,528.20M 4,387.54M 2,318.46M
Income before tax 1,762.84M 473.53M 798.59M 4,276.48M 2,176.72M
Net income 1,338.10M 293.71M 350.86M 2,943.47M 1,699.18M
EBITDA 3,392.34M 2,246.92M 3,454.03M 6,865.24M --
Diluted EPS 17.32 3.44 5.65 41.14 --
Dividends Per Share 5.45 1.71 8.47 10.47 9.28
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 --
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 --

Valuation Measures

Dec 2022
PER21.39
ROA3.68%
ROE8.26%
Operating margin5.77%
Profit margin4.23%

Key executives

  • 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 (6.7%)
  • Invesco Advisers, Inc. (2.1%)
  • The Vanguard Group, Inc. (1.7%)
  • BlackRock Fund Advisors (1.5%)
  • BlackRock Investment Management (UK) Ltd. (0.9%)
  • Norges Bank Investment Management (0.8%)
  • Schroder Investment Management Ltd. (0.7%)
  • BlackRock Advisors (UK) Ltd. (0.7%)
  • JPMorgan Asset Management (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 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 Group Corporation
  • Merck & Co., Inc.
  • Saudi Basic Industries Corp.
  • Dow, Inc.
  • DuPont de Nemours, Inc.
  • Asahi Kasei Corporation
  • LyondellBasell Industries NV
  • Linde plc
  • Air Liquide SA
  • HUMEDIX Co.LTD.
  • Huons Global Co., Ltd.
  • Eastman Chemical Company
  • Covestro AG
  • Lotte Chemical Corp.
  • Lotte 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
  • Paik Kwang Industrial Co., Ltd.
  • Blivex Energy Technology Co., Ltd Class A
  • Farasis Energy (Gan Zhou) Co. Ltd. Class A
  • Ningbo Changhong Polymer Scientific & Technical Inc. Class A
Last Updated on 3 Feb, 2023

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