Shin Hak-cheol: "This Year Is the Year of Execution... Let's Demonstrate Strong Driving Force"

"Executing Strategy in Creative Ways"
Emphasizing Goal of Becoming the World's Leading Science Company

Shin Hak-cheol, Vice Chairman of LG Chem, emphasized, "Let us declare this year as the 'Year of Execution' and demonstrate strong momentum to continuously leverage the rapidly changing business environment as an opportunity for differentiation."

In his New Year's message sent via email to employees on the 2nd, Vice Chairman Shin stated, "The difficult external environment is expected to continue in 2024, presenting a highly challenging situation for all business divisions. However, the more difficult the times, the more we must accurately face reality and execute strategies creatively to overcome these challenges."

Vice Chairman Shin evaluated, "The new growth engine businesses announced three years ago have firmly taken root as the company's future, and visible results are being produced based on concrete execution plans." He then proposed key tasks that must be prepared and achieved to strengthen fundamental capabilities to win in the market and maximize corporate value.

He said, "Improvements have been made in many areas such as manufacturing efficiency and costs related to quality failures, and we are pushing to expand these activities into non-manufacturing areas as well." He added, "Let us continue to expand the emergency management system to non-manufacturing sectors and all global business sites, and focus on innovation activities based on digital transformation (DX) to maximize internal efficiency."

He continued, "While maintaining financial soundness, investments to foster new growth engines must be continuously pursued," and suggested, "Prioritize all areas requiring input of tangible and intangible resources such as investments and customers and improve cash flow by increasing working capital efficiency."

Vice Chairman Shin also said, "Let us shift to a sustainable portfolio centered on high growth, high profitability, and low carbon," adding, "Promote high value-added business in all sectors, expand high value-added applications, and secure business competitiveness by improving the profitability of low-profit businesses through strengthening marketing capabilities."

He also emphasized the continuous promotion of the three major new growth engines: sustainability materials, battery materials, and new drugs.

Vice Chairman Shin said, "For sustainability materials, based on marketing strategies, we must discover high value-added markets and customers, and prioritize the business feasibility of individual projects to focus and select." He added, "For battery materials, pursue market leadership with differentiated materials, continuously expand customers, and strengthen metal competitiveness based on a refined global supply chain strategy."

He continued, "For new drugs, we need to advance portfolio management capabilities and strengthen local execution of overseas businesses," further explaining, "From the perspective of resource optimization, continue to strengthen our own cancer research and development (R&D) competitiveness."

Vice Chairman Shin stated, "To become the world's best science company, we must establish an operating system befitting that status," and said, "In marketing, let us enhance IT infrastructure for data-driven strategy formulation and execution, and strengthen digital marketing communication."

He reminded employees, "Even during the pandemic, we successfully overcame the crisis through differentiation, such as being ranked the 3rd globally in brand value among chemical companies and being selected as one of the top 100 companies with increased corporate value," and expressed confidence, "If we can get even a few percentage points ahead of competitors, we will be able to overcome the current crisis and maximize our company's value."

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