On the First Day of Listing, Kwon Young-soo, Vice Chairman of LG Energy Solution, Mentioned Gu Bon-mu

Koo Bon-moo Proposed Secondary Battery Research in 1992
Management Suggested Abandoning Business in 2001 and 2005 Due to Continued Losses
Koo Bon-moo: "Invest More in R&D. This Is Just the Beginning"
World's No.1 Battery Market Share in First Half of 2020
President Biden Said "Thank You" in 2021
LG Energy Solution's Successful IPO in 2022

[Asia Economy Reporter Hwang Yoon-joo] Kwon Young-soo, Vice Chairman of LG Energy Solution, drew attention by expressing gratitude to the late Koo Bon-moo, former chairman of LG Group, on the first day of the company's stock listing. Vice Chairman Kwon postponed his scheduled remarks and attributed all the achievements in the secondary battery business to Chairman Koo.

On the first day of LG Energy Solution's listing on the 27th at the Korea Exchange in Yeouido, Seoul, Vice Chairman Kwon stated, "I believe Chairman Koo Bon-moo, who early on selected the battery business as the next-generation growth engine, spared no support both materially and spiritually, and emphasized bold investment and research and development, would be happier than anyone else about today's occasion."

He added, "When I was head of LG Chem's battery business division, there were high expectations but also many concerns. However, thanks to the steadfast and persistent leadership of Chairman Koo Bon-moo and the sweat and efforts of many senior executives, we are able to stand here today. I am grateful."

On the morning of the 27th, Kwon Young-soo, CEO of LG Energy Solution, delivered a commemorative speech at the ceremony celebrating LG Energy Solution's new listing on the KOSPI, held at the Korea Exchange in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

There is a reason Vice Chairman Kwon directly mentioned the late Chairman Koo. He was the one who started LG Group's secondary battery business and also the one who persevered through the battery business's losses. The beginning dates back to 1992. During a business trip to Europe, Chairman Koo first encountered secondary batteries at the UK Atomic Energy Research Establishment. Recognizing the business potential of rechargeable secondary batteries rather than disposable ones, he obtained secondary battery samples on his way back and entrusted research to Lucky Metal (LS Nikko Copper Refinery).

Subsequently, in 1997, they succeeded in producing prototypes of small secondary batteries used in laptops. However, commercialization was difficult due to quality issues. Despite continued investment in research and development, the business remained unprofitable. Eventually, in November 2001, a crisis arose. Top executives of major affiliates proposed to Chairman Koo to abandon the secondary battery business.

It is a well-known anecdote that Chairman Koo preserved the secondary battery business by saying, "Do not give up; look at the long term and focus more on investment and research and development." At the meeting, he encouraged, "Since we have accumulated know-how from pushing the battery business so far, I believe LG Chem should continue. Have confidence that we can definitely succeed and start again."

In 2005, the business faced a second crisis. The secondary battery business's losses reached 200 billion won, worsening the situation. Executives again urged Chairman Koo to give up the business. Chairman Koo responded, "Invest more money in battery business R&D. This is just the beginning." Until a few years prior, there were even complaints within LG Chem like "Make money to fund battery research."

The secondary battery business, once the underdog, recorded its first profit in 2020. The business also evolved from Lucky Metal to LG Chem's battery business division and then became independent as LG Energy Solution. In the first half of 2020, it ranked first in the global battery market share. Since then, it has been fiercely competing for the top spot with China's CATL.

At last year's Korea-US summit, President Biden mentioned Korean companies investing in the US during a joint press conference and repeated "thank you" three times, drawing attention. One of the companies present was LG Energy Solution.

This is why Vice Chairman Kwon, who led LG Chem's battery business division in 2012, directly expressed gratitude to Chairman Koo at LG Energy Solution's listing event.

Meanwhile, LG Energy Solution also set new records in Korean IPO history. It recorded the largest scale ever with subscription deposits of 114 trillion won and about 4.424 million subscription cases in the general subscription. In institutional demand forecasting, it gathered an unprecedented order amount in the 'gyeong' unit (1,520.3 trillion won). The public offering price was 300,000 won, and the opening price was set at 597,000 won, a 99% increase from the offering price.

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