As AI technology continues to advance and convergence across industries accelerates, the environment surrounding the materials industry is changing rapidly. Accordingly, the role of materials companies is expanding beyond product performance to encompass manufacturing process efficiency, cost competitiveness, and the technological capabilities needed to respond quickly to changing markets.

In response to these changes, LG Chem will invest a total of KRW 15 trillion in research and development (R&D) by 2035 and advance its business portfolio around future growth industries. The company will foster semiconductors and AI infrastructure, mobility and robotics, and innovative oncology medicines as its future core businesses, while presenting a new vision of becoming a ‘Tech-Driven Converting Company.’ This is LG Chem’s growth strategy for delivering greater value to customers based on the technological competitiveness it has built over the years.

Technology Has Driven LG Chem’s Growth
and Technology Is Also the Starting Point for Its Transformation

For more than 70 years since its founding, LG Chem has grown through technology. Whenever new markets have emerged, the company has understood customer needs, addressed them through technology, and created new value.

What LG Chem has accumulated through this process extends beyond product technologies. Its experience in developing products with customers, combining various materials to achieve optimal performance, and improving processes to enhance productivity and quality is also an important source of competitiveness for LG Chem.

Today, the technologies customers require are becoming increasingly complex. Beyond the performance of an individual product, customers increasingly need a partner that can work alongside them from the development stage through the manufacturing process and consider the competitiveness of the final product. This is why LG Chem has presented the ‘Tech-Driven Converting Company’ as its new vision.

What Is a Tech-Driven Converting Company?

The “converting” envisioned by LG Chem does not simply refer to a one-dimensional change in business areas.

It refers to rapidly transforming the business by bringing together all the technologies and capabilities the company possesses in areas where customers, markets, and technologies are changing. In other words, it is a declaration of LG Chem’s intention to evolve beyond a simple material supplier into an ‘integrated solutions provider’ that works with customers to design both product performance and manufacturing processes.

Two key competitive strengths make this possible.

The first is LG Chem’s distinctive proprietary technologies and process know-how, accumulated over many years. The second is its integrated solution design capability: the ability to anticipate market changes ahead of customers, participate from the product planning and design stages, and propose customized technology and process solutions.

These competitive strengths provide a foundation for further strengthening collaboration by developing new products with customers from the early stages of development and for rapidly connecting accumulated technologies to new industries and markets.

In particular, to quickly implement this strategy, LG Chem established a New Business Development organization reporting directly to the CEO in June and is also actively pursuing external growth strategies, including M&A, within the scope of available financial resources.

Three Core Businesses That Will Drive Future Growth

LG Chem’s blueprint for the future begins with a concrete and bold investment plan.

LG Chem plans to invest a total of KRW 15 trillion in research and development (R&D) by 2035. Of this investment, 70% will be allocated to three core businesses: Semiconductors & AI Infrastructure, Mobility & Robotics, and Innovative Oncology Medicines.

This focused investment goes beyond simply increasing R&D spending. It reflects LG Chem’s strong commitment to fundamentally transforming its business structure from traditional chemical businesses facing difficulties due to global oversupply toward high-growth, high-value-added industries. In particular, the company plans to concentrate its capabilities on rapidly securing proprietary technologies that will lead new AI-driven applications and markets.

What strategies, then, will each of the three future growth engines driving LG Chem’s transformation pursue?

① Semiconductors & AI Infrastructure: A Leading Player in Advanced Packaging Materials

In response to the rapid growth of the AI semiconductor market, LG Chem is focusing on strengthening its competitiveness in advanced packaging materials.

• Key products: Expanding the development of high-value-added products, including packaging adhesives, low-dielectric materials, thermal management materials, and glass substrates
• Goal: Growing the electronic materials business to KRW 2 trillion by 2030 based on the competitiveness of key materials such as PID, DAF, and CCL

② Mobility & Robotics: Core Solutions for Future Mobility

LG Chem is expanding beyond electric vehicle materials into robotics, a core area of next-generation industries.

• Developing structural materials for robots as well as precision actuation and bonding materials
• Building distinctive technological barriers through joint development with customers

③ Innovative Oncology Medicines: Strengthening Global Pipeline Competitiveness

In the bio business, a mid- to long-term growth engine, LG Chem is accelerating global clinical development and partnerships.

• Maximizing commercialization potential through technology licensing (L/O) and mergers and acquisitions (M&A)

LG Chem’s Commitment to Navigating the Waves of Change

With the advancement of AI and digital transformation, the pace of industrial change is accelerating further. Amid these changes, a company’s competitiveness depends on how quickly it can connect new technologies to its business and expand them into new value.

A ‘Tech-Driven Converting Company’ represents a new approach to growth in response to these changes. Based on the technologies it has accumulated and the experience it has gained with customers, LG Chem will strengthen the competitiveness of its existing businesses while fostering future growth industries and move forward, step by step, toward becoming a company that delivers greater value to customers.