LG Chem plans to invest 15 trillion won ($9.74 billion) in R&D until 2035 as the company shifts focus to AI-driven growth sectors such as semiconductors, mobility, and robotics.
At the company’s town hall meeting, CEO Kim Dong-choon detailed the plan to refine its portfolio based on four key future pillars: semiconductor, mobility and robotics materials, and oncology drugs, targeting a double-digit operating margin by 2030.
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The shift occurs as profits in conventional petrochemical sectors decline due to worldwide oversupply and rising competition.
According to the plan, approximately 70 percent of the investment will be directed towards strategic sectors like semiconductor, mobility, and robotics materials, while also intensifying efforts to obtain cutting-edge technologies and novel AI-driven applications.
This month, the company has already set up a new business development unit led by the CEO to enhance execution speed.
“LG Chem will strengthen the competitiveness of its existing businesses while concentrating resources on future growth pillars centered on semiconductor, mobility and robotics materials and oncology drugs, transforming itself into a tech-driven converting company,” Kim says, referring to a company that creates high-value, differentiated business models.
The firm stated it will also aim for growth through mergers and acquisitions to hasten expansion and enhance its global competitiveness.
In semiconductors and infrastructure, LG Chem seeks to solidify its position in advanced packaging materials through the enhancement of adhesives, low-dielectric substances, thermal management solutions, and glass substrates. The firm plans to expand its electronic materials division to 2 trillion won by the year 2030.
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In the fields of mobility and robotics, the firm intends to expand its offerings beyond electric vehicles to include materials for robotic structures and high-precision motion and adhesion materials. Leveraging the technological barriers created through collaboration with clients, the company aims to create a sustainable and stable earnings foundation.
LG Chem aims to enhance its oncology drug pipeline by engaging in global clinical trials and forming partnerships. It aims to enhance commercialization opportunities via licensing agreements and acquisitions, while establishing the business as a long-term growth driver.
The firm announced it aims to shift from being a commodity supplier to becoming an integrated solutions provider, creating not just materials but also customer products and production methods.
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The change aims to lessen dependence on price rivalry and create a more stable, sustainable, and high-margin earnings framework.