LG Chem will introduce an companywide artificial intelligence (AI) transformation and adopt a new goal management method. In a New Year address on Monday, LG Chem CEO Kim Dong-choon set out innovative approaches, focus and selection, and changes in how people work as key tasks.

Kim mentioned AI-driven changes in the semiconductor, robot and autonomous driving markets, an oversupply structure and geopolitical uncertainty. He said new competitors are emerging and corporate rankings are shifting in this environment.

LG Chem will reorganise its business portfolio from the perspective of competitive advantage 10 and 20 years from now. It will judge based on long-term competitiveness regardless of whether market conditions improve in 2 to 3 years, and aim for high-profit businesses with high technology barriers and close customer ties.

The company will concentrate capabilities that are dispersed in the process of pursuing new businesses. It will clarify strategic priorities and keep early-stage investment, while adjusting parts that do not fit the strategy and putting limited resources into core competitive-advantage technologies and key new business areas.

It will also introduce AX (AI Transformation) and OKR (Objectives & Key Results) companywide as part of changes in how people work. It will adopt agentic AI across sales, production and development to seek short-term performance, and use OKR to push challenging goals across the organisation and run inter-departmental collaboration teams.

Kim said, "If all employees commit with a determination to make a breakthrough, we can overcome big changes through innovative methods." He added, "If innovative DNA builds up, we will change into the strongest company that can break through any crisis."