LG Chem CEO installs 'sense of crisis'

By Kim Yoo-chul

LG Chem CEO Park Jin-soo downplayed a quarterly report that criticized its new businesses for failing to live up market expectations.

Park said in a message to workers during a trip to a factory in Naju, Monday: “Today’s achievements don’t guarantee the next. If you get lazy, then you will fail.”

LG Chem, the nation’s biggest chemical company, earned 563 billion won in operating profit during the second quarter on sales of 5.07 trillion won. This is the first time in seven quarters that the LG Group’s chemical affiliate earned over 500 billion won.

LG Chem operates massive chemical plants in Korea and battery lines in Ochang, Nanjing in China and Michigan, the United States. LG Chem is the world’s biggest supplier of large-sized batteries with the company supplying more than 20 global carmakers.

The main reason CEO Park is installing a “sense of crisis” is due the continued troubles of LG Electronics, the group’s most-critical affiliate, said officials.

Analysts say LG Chem’s second quarter performance is inspiring. But they added such brighter performance was diluted by the struggling LG Electronics led by Koo Bon-joon, the younger brother of LG Chairman Koo Bon-moo.

In a statement, Park said it was urgent to address challenging issues such as currency volatility for corporate sustainability.

He rarely admitted that a part of its second quarter performance comes from a tight supply of ethylene, one of key components used in chemical products.

“All LG Chem employees should be pro-active and respond to market trends. This is the winning formula to beat today’s market uncertainties,” Park said in the statement, stressing LG Chem has to watch out for low economic growth in China, the single biggest market for the Korean company.

Park also urged its employees to pay more attention to “value creation” for the company’s key customers.