Shin Hak-cheol, vice chairman of LG CHEM, said on the 24th, "We have set our business plan for capital expenditure (CAPEX) at around 2.5 trillion to 2.7 trillion won, but we are considering several priorities and try to reduce it by more than 1 trillion won."
Vice Chairman Shin noted after attending the 24th annual shareholders' meeting of LG CHEM held at the LG Twin Tower in Yeouido, Seoul, "Cash flow is important." Earlier, LG CHEM announced during last month’s earnings conference call that it plans to adjust its CAPEX this year from the previously proposed 4 trillion won down to the 2 trillion to 3 trillion won range.
Vice Chairman Shin revealed regarding the sale of the naphtha cracker facilities as part of the petrochemical restructuring, "We are still reviewing specific details and are considering several options." When asked if related discussions had been canceled or suspended, he denied, saying, "No."
Regarding the speculation of selling equity in LG Energy Solution, he said, "It is being considered as one of several options, and you don't need to worry about that part."
Vice Chairman Shin expressed "very high expectations" for the government's policy measures to strengthen the competitiveness of the petrochemical industry, saying, "The government and industry will work together, and I understand that the government is preparing follow-up measures." He also conveyed that "various discussions are taking place regarding government support through research and development (R&D) tax benefits and national projects for technology development."
At the shareholders' meeting that day, Vice Chairman Shin said, "We will enhance our portfolio through qualitative growth in our three major new growth engines" and added, "We will prioritize within the three major new growth engines and increase competitiveness through selection and focus." He outlined plans to strengthen competitive advantages in the battery materials institutional sector based on technological capabilities, to identify and nurture growth areas in the sustainability sector, and to pursue securing late-stage oncology assets in the new drug sector.
He also introduced plans to transition in research and development (R&D). Vice Chairman Shin explained, "To achieve efficient R&D, we will not only optimize internal resources but also accelerate external collaborations and activities in artificial intelligence (AI) and digital transformation (DX)," adding, "We will systematize this to lead to tangible business results." He stated that, "After closely analyzing all expenses from a zero base, we will improve internal efficiency and ensure financial soundness through priority adjustments for efficient investments and optimal resource allocation."
Vice Chairman Shin, who has led LG CHEM as CEO since 2019, was reappointed as CEO for another two-year term at the shareholders' meeting that day.