LG Chem says it will invest 15 trillion won (about $9.74 billion) in research and development through 2035 as it shifts toward AI-driven growth. At a company town hall meeting, CEO Kim Dong-choon outlines a plan to reorganize the business portfolio around four main future pillars: semiconductors, mobility and robotics materials, and oncology drugs. The company aims to reach a double-digit operating margin by 2030.
The company’s strategy is linked to weakening profitability in traditional petrochemical businesses. It points to global oversupply in petrochemicals and intensifying competition as factors that pressure margins, motivating a reallocation of resources toward higher-growth sectors.
Under the plan, LG Chem will direct about 70% of its R&D spending to the strategic sectors that include semiconductors and mobility and robotics materials, while working to secure leading technologies and develop new AI-enabled applications. To support faster execution, LG Chem has also set up a CEO-led new business development unit in the same timeframe as the announcement.
