Lee Gyu-lee is a business writer at The Korea Times, focusing primarily on IT & telecommunications, the Ministry of Trade, Industry and Energy and KOTRA. Prior to this, she has covered a wide range of cultural news, from film, television and K-pop to lifestyle and fashion.
LG Chem bets $9.7 bil. on semiconductors, mobility, robotics materials
LG Chem CEO Kim Dong-choon speaks during a town hall meeting in Seoul, Monday. Courtesy of LG Chem
By Lee Gyu-lee
LG Chem will be investing 15 trillion won ($9.74 billion) in research and development through 2035 as the company pivots toward artificial intelligence (AI)-driven growth areas, including semiconductors, mobility and robotics.
During the company’s town hall meeting on Monday, CEO Kim Dong-choon outlined the strategy to sharpen its portfolio around four core future pillars: semiconductor, mobility and robotics materials and oncology drugs, aiming for a double-digit operating margin by 2030.
The move comes as profitability in traditional petrochemical businesses weakens amid global oversupply and intensifying competition.
Under the plan, the company will allocate about 70 percent of the investment to strategic sectors, including semiconductor, mobility and robotics materials, while accelerating efforts to secure leading technologies and new AI-enabled applications.
To speed up execution, the company has already established a CEO-led new business development unit this month.
“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 said, referring to a company that creates high-value, differentiated business models.
The company said it also plans to pursue growth through mergers and acquisitions to accelerate expansion and bolster its global competitiveness.
In semiconductors and infrastructure, LG Chem aims to strengthen its foothold in advanced packaging materials by expanding the development of adhesives, low-dielectric materials, thermal management solutions and glass substrates. The company aims to grow its electronic materials business to 2 trillion won by 2030.
In mobility and robotics, the company plans to broaden its portfolio beyond electric vehicles into robot structural materials, as well as high-precision motion and bonding materials. Based on the technological barriers it has built up through co-development with customers, the company plans to establish a sustainable and stable earnings base.
For oncology drugs, LG Chem will strengthen its pipeline through global clinical trials and partnerships. It plans to improve commercialization prospects through licensing deals and acquisitions, while positioning the business as a long-term growth engine.
The company said it also plans to transition from a commodity supplier into an integrated solutions provider, designing not only materials but also customer products and manufacturing processes.
The shift is intended to reduce reliance on price competition and build a more stable, sustainable and high-margin earnings structure.