LG Chem bets 15 trillion won on AI pivot

LG Chem plans to invest 15 trillion won ($9.8 billion) in research and development to transform itself into an AI-driven materials company, the company's CEO said Monday, as the chemical giant looks to offset weakening profitability in its core business.

“We will enhance our portfolio by fostering semiconductor, mobility and robot materials, as well as new anticancer drugs, as core future businesses through 15 trillion won in research and development [R&D] investment," CEO Kim Dong-choon told employees at a town hall meeting on Monday. 

Seventy percent of the R&D budget will go toward those growth areas, with a focus on securing AI-based applications and advanced technologies. LG Chem also said it is accelerating execution through a new business development unit established this month that reports directly to the CEO, and plans to pursue mergers and acquisitions alongside organic growth to strengthen its global competitiveness.

In semiconductors and infrastructure, the company will focus on advanced packaging materials including adhesives and glass substrates. For mobility and robotics, it plans to develop structural materials and precision drive and bonding components. Its cancer drug pipeline will be advanced through global clinical trials and partnerships.

The strategy aims to shift LG Chem from a supplier of materials to an integrated solutions provider that works with customers to develop products and optimize manufacturing processes.

“Our goal is to achieve a double-digit operating profit margin by 2030,” Kim said. “While strengthening the competitiveness of our existing businesses, we will focus our capabilities on future growth drivers — particularly semiconductor, mobility and robotics materials, as well as innovative cancer therapies — and transform LG Chem into a technology-driven converting company.”

BY KO SUK-HYUN [[email protected]]