This article was published on Sept. 8, 2025, at 6:40 p.m. on the ChosunBiz MoneyMove website.
LG CHEM is in discussions with securities firms to raise between 2 trillion won and 3 trillion won by using its stake in its electric vehicle battery subsidiary LG Energy Solution as collateral. However, the scale and conditions for issuance have not yet been determined, and the company is in the early stages of reviewing proposals from the securities firms.
According to the investment banking (IB) industry on the 8th, LG CHEM is considering entering into a price-return swap (PRS) contract based on its stake in LG Energy Solution to raise up to 3 trillion won. Given that LG Energy Solution's market capitalization is about 80 trillion won, approximately 2 to 3% of the equity is expected to be the subject of the contract.
It is reported that multiple securities firms are positively reviewing participation. Major firms such as KB Securities, NH Investment & Securities, Korea Investment & Securities, and Shinhan Investment Corp. have agreed to shoulder hundreds of billions of won each and are currently negotiating the amounts.
An official from LG CHEM said, "We have been consistently receiving proposals from securities firms to secure funding through PRS," and added, "Nothing has progressed in a practical sense yet."