LX Group cruises toward stable growth in 5th year of independence

LX Group Chairman Koo Bon-joon / Courtesy of LX Group

LX Group marked its fifth year as a standalone conglomerate on May 1, following its separation from LG Group in 2021.

Defying initial worries over its viability as an independent business group amid the prolonged global economic slowdown, the group has steadily expanded its business portfolio and stabilized its earnings, creating a rosy outlook for its long-term growth.

According to the group, the combined assets of its affiliates stood at 12.67 trillion won ($9.04 billion), up 33.37 percent from 9.5 trillion won in 2021. The number of affiliates also increased to 17 as of April, up from 11 when it split from LG Group.

After its separation, LX Group launched with LX Holdings as its holding company, overseeing four key subsidiaries: trading firm LX International, housing materials company LX Hausys, semiconductor fabless firm LX Semicon and chemical company LX MMA.

Since then, the group has pursued an aggressive expansion strategy, taking over glassmaker Han Glas, now LX Glas, along with other firms in the fields of biomass and logistics to further diversify its portfolio.

As a result of these efforts, the group was first categorized as a conglomerate by the Fair Trade Commission in 2023, ranking 44th, and moved up to 43rd in this year’s list, released on May 1.

The group’s earnings saw rapid growth through 2022. In 2020, before the disaffiliation, the combined sales and operating profit of its four key subsidiaries stood at 16.02 trillion won and 402.5 billion won, respectively, but these figures soared to 25.27 trillion won and 1.35 trillion won by 2022.

Both figures declined in 2023, falling to 20.63 trillion won in sales and 656.9 billion won in operating profit, but rebounded in 2024 to 22.94 trillion won and 888.3 billion won, respectively.

The rebound last year was driven largely by LX International. The trading firm’s consolidated revenue and operating profit stood at 16.64 trillion won and 489.2 billion won respectively last year, up 14.6 percent and 13 percent from a year earlier.

LX Semicon also logged an operating profit of 167.1 billion won last year, up 29.5 percent from the previous year, while LX MMA turned profitable with an operating profit of 134.5 billion won.

For future growth, LX International will accelerate resource trading in its portfolio to explore new investment opportunities in nickel and copper mining, while developing new items and regional models for its trading businesses.

LX Hausys plans to ramp up efforts to expand overseas sales. The company will focus on launching differentiated products and secure a clear competitive edge across its core product lines, including building insulation, engineered stone, flooring, wallpaper and kitchen furniture.

LX Semicon will focus on Driver-IC for display and power management integrated circuits, as well as exploring additional growth in the fields of microcontroller units and thermal substrates.

“To ensure sustainable growth, we will focus on securing a new customer base and exploring global business opportunities,” LX Holdings Chairman Koo Bon-joon said during the company’s annual shareholders' meeting on March 31.

“At the same time, we will foster differentiated businesses that can secure a competitive edge.”