LG Chem has formalised a shift into an AI-based, high value-added materials company, using slowing profitability in its traditional chemical business as a breakthrough point. LG Chem CEO Kim Dong-choon (김동춘) said on June 23 that the company will nurture semiconductor, mobility and robot materials and new cancer drugs as future core businesses and achieve a double-digit operating margin in 2030.

LG Chem will invest a total of 15 trillion won in research and development through 2035. About 70 percent of that will be allocated to growth businesses such as semiconductor, mobility and robot materials. It will focus on securing new AI-based application areas and leading technologies, while also pursuing external growth strategies such as mergers and acquisitions within the scope of funds it can raise. To support execution, it set up a new business development organisation under the CEO starting this June.

In semiconductors and infrastructure, it will focus on securing competitiveness in advanced packaging materials. It plans to expand development of high value-added products such as packaging adhesives, low-dielectric materials, thermal management materials and glass substrates, and grow its electronic materials business to 2 trillion won by 2030. In mobility and robots, it will broaden its business beyond electric vehicle materials into robot structural materials and precision drive and bonding materials.

In new cancer drugs, it will strengthen pipeline competitiveness centred on global clinical trials and partnerships. It plans to raise the likelihood of commercialisation through technology transfers and M&A and develop it into a medium- to long-term growth engine. LG Chem also plans to shift to an integrated solution business model that goes beyond supplying materials to jointly design customer product performance and manufacturing processes.

Kim said, "While strengthening the competitiveness of existing businesses, we will focus our capabilities on future growth axes centred on semiconductor, mobility and robot materials and new cancer drugs, and make a leap into a converting company strong in technology."