en.Wedoany.com Reported - LG Chem plans to invest 15 trillion won in research and development by 2035, driving the company's transformation into a high-value-added materials company based on artificial intelligence.
LG Chem CEO Kim Dong-chun outlined this mid- to long-term business direction at a town hall meeting held the previous day. Amid the ongoing downturn in the petrochemical industry and intensifying global competition, the company aims to restructure its earnings base around high-growth industrial materials and the bio sector.
By 2035, LG Chem's total R&D investment will reach 15 trillion won, with 70% of the funds allocated to nurturing businesses such as semiconductors, mobility, and robotics materials, focusing on securing new AI application areas and leading technologies. The company established a new business development organization directly under the CEO in June this year and has begun executing related strategies.
In the semiconductor sector, advanced packaging materials are a key focus. LG Chem will expand its high-value-added product portfolio, including adhesives for packaging, low-dielectric materials, thermal management materials, and glass substrates, aiming to increase electronic materials business sales to 2 trillion won by 2030.
In the mobility and robotics sectors, the business scope will expand from electric vehicle materials to structural materials for robots, precision drive component materials, and bonding materials. The company plans to collaborate with finished product manufacturers from the initial stage to supply customized materials, building technological barriers that latecomers will find difficult to overcome.
The new drug business will focus on the oncology field. LG Chem plans to expand global clinical trials and external partnerships, enhancing the commercialization potential of its pipeline through technology transfers or mergers and acquisitions.
The business model will also undergo transformation. Instead of simply supplying materials, the company will transition to a solution-based business model that simultaneously designs customer product performance and production processes. The goal is to reduce the proportion of general products vulnerable to price competition and increase high-margin businesses, achieving a double-digit operating profit margin by 2030.
CEO Kim stated: "While strengthening the competitiveness of existing businesses, we will concentrate our capabilities on future growth axes centered on semiconductors, mobility, robotics materials, and anticancer drugs, becoming a technology-driven transformation company."
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