LG Chem hires 3M vice chair as new head

By Jun Ji-hye

LG Chem has named Shin Hak-cheol, a vice chair and executive vice president of 3M, as its new vice chairman and CEO. Shin will replace Park Jin-soo who has served in the position since 2012.

It marks the first time for LG Chem to nominate a CEO from outside the company since its foundation in 1947. Shin's appointment will be finalized at a general meeting of stockholders in March.

Shin Hak-cheol

The appointment comes as LG Chem's business area has been developing from a wide range of petrochemical products to high-tech materials, components and biotechnology such as new materials, rechargeable batteries, IT, electronic materials and life sciences.

The Korean company said there has been a need for a sophisticated and systemized global business operating system due to the globalization of the petrochemical business, the main cash cow of the company, along with the rapid expansion of overseas production and marketing of lithium-ion batteries.

The 61-year-old began as a technical service supervisor with 3M Korea in 1984 and joined 3M Philippines in 1995 to become a managing director of the branch.

In 2011, he was named as the executive vice president of 3M International Operations and became the first Korean business professional to lead the international company.

“As the vice chair and executive vice president of 3M, Shin has gained a global perspective and experience in operating a global materials and components business,” LG Chem said in a statement. “We were to recruit him as he is the right person capable of pre-emptively responding to the rapidly changing business environment while leading the change in corporate culture and structure.”

The company added Shin's appointment will help it take a further step forward in becoming a globally innovative company.

Park, after his retirement, will work to foster the younger generation and remain as an adviser for the company.

LG Chem is Korea's largest diversified chemical company. It is also one of the world's largest lithium-ion battery manufacturers with significant market share in consumer, automotive and stationary applications.