As 2026 begins, the global chemical industry is evolving at an unprecedented pace, where uncertainty has become a defining constant of our business environment. At this pivotal inflection point, LG Chem returns to a question that will shape our next era: What is the core competitive advantage we must restore and foster now?

Technology as the Breakthrough at a Time of Transformation

For more than 70 years, LG Chem has grown from a Korean company into a global chemical leader through sustained challenge and innovation. From a small cosmetics manufacturer in 1947 to building a diversified portfolio spanning petrochemicals, advanced materials and life sciences—driven not by scale alone, but by disciplined choices rooted in technology.

Early R&D investments in battery materials, once considered a largely unexplored frontier, laid the foundation for LG Chem’s future energy solutions. LG Chem has continued advancing next-generation technologies through the development of eco-friendly plastics, high value-added petrochemical and advanced electronic materials including semiconductor materials, alongside achieving Korea’s first FDA-approved novel drug milestone. Throughout its history, technological innovation has remained the strategic core of LG Chem’s growth and global competitiveness.

Today, however, LG Chem faces a far more complex environment. Global economic slowdown and geopolitical volatility persist, while the petrochemical industry experiences structural downturn and downstream electrification continues to be delayed. At the same time, rapid changes driven by AI are reshaping markets such as semiconductors, robotics, and autonomous driving, while structural imbalances where supply exceeds demand and rising geopolitical uncertainty are making the environment increasingly difficult to predict. In this shifting landscape, new competitors are emerging and industry dynamics are being reshaped.

In response, LG Chem’s conclusion is clear. The answer lies in technology once again. Now is the time to restore and reinvent technological expertise ensuring they translate directly into customer value, business impact and sustainable competitiveness.

Three Key Priorities for LG Chem in 2026

To accelerate this shift, LG Chem is focusing on Three key priorities.

First, Accelerating the Transition to a Technology-Driven Business Structure. Responding effectively to large-scale change requires an innovative approach. LG Chem is sharpening portfolio transformation with strategic discipline, evaluating each decision not through short-term cycles, but through the lens of sustained competitive advantage ten to twenty years ahead. Chasing temporary market trends is not an option.

Second, Securing Winning Tech through Innovation in Our R&D System. Increasing the probability of successful innovation requires clear selection and focus. LG Chem will continue future-oriented seed investments while decisively adjusting areas misaligned with strategy. By concentrating limited resources on core Winning Tech initiatives and key new business domains, LG Chem is reinforcing execution that translates directly to measurable business impact.

Third, Innovation in the Way We Work: AX and OKRs. Innovation in the way we work accelerates the speed of our technological leap. LG Chem is driving AX and OKR as enterprise-wide catalysts for scalable execution and cross-functional collaboration, ensuring innovation is delivered at the pace and with the impact the market demands. Two key approaches are embedded into the operating model:

① Work Innovation through AX (AI Transformation)
In the field, LG Chem is accelerating innovation by generating visible short-term results through quick wins. Agentic AI is being deployed across sales, production and R&D to increase the speed and scale of consumer value creation.

② Introduction of OKR (Objectives & Key Results)
LG Chem is driving ambitious, differentiated objectives across the organization.  Differentiation is not achieved by matching the industry baseline. LG Chem is operating as cross-functional teams, engaging in rigorous alignment, deep debate and shared ownership of outcomes to accelerate innovation velocity and deliver tangible results.

*OKR (Objectives & Key Results): A goal management framework that strengthens execution by setting ambitious objectives and defining measurable key results to track progress toward those objectives.

LG Chem has continually overcome challenges by returning to its fundamentals. Although 2026 is expected to be another demanding year, LG Chem is committed to turning these challenges  into new opportunities for growth—grounded in restored technology leadership and strengthened execution. LG Chem’s next steps and transformations, driven by technology, will continue to be shared here.