[New Year's Message] Shin Hak-cheol, Vice Chairman of LG Chem, "Advancing Proactive and Aggressive Portfolio Enhancement"

"Let's Reevaluate All Investments from Zero Base"

Shin Hak-cheol, Vice Chairman and CEO of LG Chem, announced the goal of "continuing to designate this year as the 'Year of Execution' following last year, proactively and preemptively advancing portfolio enhancement."

Shin Hak-cheol, Vice Chairman of LG Chem. LG Chem

In his New Year's address on the 2nd, Vice Chairman Shin said, "The external environment will certainly not be easy this year either," adding, "For survival, a fundamental change in behavior based on a clear recognition of reality, rather than the previously sustained methods, is urgently needed."

He also stated, "Amid global market uncertainties and rapid changes, we are at a point where thorough transformation and bold challenges are more necessary than ever," and presented six key tasks to be achieved this year.

First, he urged efforts to secure differentiated competitiveness in business and efficient use of resources. He said, "Let us analyze all costs meticulously from a zero base, moving away from past practices," and added, "Based on customer experience-driven cost and product competitiveness, let us strive to differentiate operating profit margins compared to peers in the industry."

He continued, "Not only costs but all investments should be re-examined from a zero base considering the future 3Cs (Customer, Change, Challenge), and resources should be efficiently allocated through refining investment priorities."

He also emphasized accelerating the shift to performance-oriented research and development (R&D) for future competitiveness. Vice Chairman Shin said, "To sustain future competitive advantages, we must further strengthen R&D competitiveness," and added, "Let us clarify the missions of each organization and ensure that R&D is linked to business performance."

He mentioned solidifying the three new growth engines (battery materials, Sustainability, and new drugs) through selection and concentration. Regarding Sustainability, he said, "Focus on the aviation fuel sector business, and internalize core technologies for chemical recycling and bio-materials so that we can enter with a differentiated advantage whenever the market opens."

He added, "For battery materials, strengthen the competitive edge in cathode materials based on first-mover products and technologies, and for new drugs, actively improve the qualitative level of individual projects and secure late-stage oncology pipelines."

Furthermore, Vice Chairman Shin concluded by saying, "Thanks to the dedication and creative challenges of our employees last year, we were able to respond agilely to changes and lay the foundation for the future," and expressed hope that "our efforts this year will bear fruit, making it a year of sustainable growth and innovation."

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