LG Chem is accelerating its transformation into a technology-driven company by announcing a massive investment plan centered on research and development (R&D), with a strong focus on artificial intelligence (AI), semiconductor materials, future mobility and innovative cancer therapies.
The company said Monday that President Kim Dong-chun outlined its long-term growth strategy during a town hall meeting held on Sunday, identifying semiconductor materials, mobility and robotics materials, and oncology drugs as the company's key future businesses.
The move comes as global oversupply and intensifying competition continue to pressure profitability in the traditional petrochemical sector, prompting LG Chem to reshape its business portfolio toward high-growth and high-value industries.
Under the plan, LG Chem will invest a total of KRW 15 trillion ($10.9 billion) in R&D by 2035. About 70% of the investment will be allocated to growth businesses such as semiconductor, mobility and robotics materials, while the company will also focus on securing leading technologies and developing new AI-based applications.
In June, LG Chem established a new business development organization directly under the chief executive officer to accelerate the execution of its growth strategy.
The company also plans to pursue external growth opportunities, including mergers and acquisitions (M&A), within the scope of available financial resources to strengthen its global competitiveness and expand its business portfolio more quickly.
In the semiconductor and infrastructure sectors, LG Chem plans to enhance its competitiveness in advanced packaging materials. The company will expand development of high-value products, including packaging adhesives, low-dielectric materials, thermal management materials and glass substrates.
Building on its core technologies in products such as PID, DAF and CCL, LG Chem aims to grow its electronic materials business into a KRW 2 trillion revenue business by 2030.
In the mobility and robotics sectors, the company intends to broaden its business scope beyond electric vehicle materials to include structural materials for robots and precision drive and bonding materials.
LG Chem said it will leverage the technological barriers it has built through joint development projects with customers to secure a stable and sustainable earnings base.
The company also plans to strengthen its oncology drug business by enhancing its global clinical capabilities and partnerships.
LG Chem intends to improve the commercialization potential of its drug pipeline through technology licensing, strategic alliances and acquisitions, positioning innovative medicines as a key long-term growth engine.
Industry analysts view LG Chem's latest initiative as a significant step in its transition from a traditional chemical manufacturer into an advanced materials and life sciences company.
As China's aggressive capacity expansion continues to weigh on the global petrochemical industry, companies are increasingly seeking new growth drivers in areas such as AI, semiconductors and biotechnology.
The rapid expansion of AI infrastructure and advanced computing is also creating strong demand for semiconductor materials, particularly advanced packaging and thermal management solutions, which could present significant opportunities for LG Chem.
"The competitive landscape of the chemical industry is shifting rapidly from commodity products to advanced materials and technologies," an industry official said. "LG Chem's large-scale R&D investment and portfolio transformation are strategically important for securing future growth engines and strengthening its global competitiveness."
President Kim emphasized the company's long-term vision, saying, "LG Chem will continue to strengthen the competitiveness of its existing businesses while concentrating its capabilities on future growth engines centered on semiconductor, mobility and robotics materials and oncology drugs, transforming itself into a technology-driven converting company."
Analysts believe that increasing the proportion of high-value businesses could help reduce earnings volatility and improve profitability, supporting the company's goal of achieving double-digit operating margins by 2030.
With its aggressive investment plan and strategic focus on next-generation technologies, LG Chem is positioning itself to become a leading global technology company beyond its traditional roots in petrochemicals.
