LG Chem Sells Photosensitive Materials Business in China to Focus on New Businesses Like Batteries

[Asia Economy Reporter Hwang Yoon-joo] LG Chem is accelerating the restructuring of its business portfolio, focusing on new growth engines such as batteries. Following its withdrawal from the liquid crystal display (LCD) glass substrate business, it has sold its color photoresist business to China.

According to industry sources on the 28th, Chinese company Yoke Technology (雅克科技) announced that its subsidiary Siyang International (斯陽國際) has signed a contract to acquire LG Chem's photoresist business for 58 billion KRW. Photoresist is a material used to express colors in LCDs.

Previously, LG Chem had been pushing to sell its LCD material business due to deteriorating profitability caused by price competition among Chinese display manufacturers. While the sale of the LCD glass substrate business fell through, the company decided to completely withdraw from it.

At that time, LG Chem explained, "The market conditions in the upstream industry continued to worsen due to the rapid increase in production facilities in China. Although we sought opportunities to expand the LCD glass substrate business, we judged that it would be difficult for the business to turn to recovery due to reduced investment in major domestic LCD production facilities, and thus reluctantly decided to withdraw."

LG Chem plans to invest the proceeds from the sale of the LCD color filter photoresist business into future businesses such as batteries.

This content was produced with the assistance of AI translation services.