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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] LG Chem plans to secure capital by reducing its stake in LG Energy Solution to around 70% and use the proceeds to foster new growth engines and reinforce its financial soundness. Amid a challenging business environment, including widening losses due to weaker performance in its core businesses in the fourth quarter of last year, the company aims to strengthen operational fundamentals through asset monetization and scaled-back capital expenditures.
Cha Dong-seok, Chief Financial Officer (CFO) of LG Chem, said during the company’s fourth-quarter 2025 earnings conference call on the 29th that “LG Chem will gradually monetize its holdings in LG Energy Solution over the next five years or so, reducing its ownership to approximately 70%.” LG Chem currently holds about 79.4% of LG Energy Solution.
The funds secured through the stake reduction will be allocated to enhancing growth competitiveness, improving financial stability, and increasing shareholder returns.
The decision represents a proactive measure in response to heightened external market volatility and the need for disciplined financial structure management. In the fourth quarter of last year, LG Chem reported consolidated revenue of KRW 11.1971 trillion and an operating loss of KRW 413.3 billion. Revenue declined 8.8% year-on-year, while operating losses widened by 58%, largely due to sluggish performance in its core businesses, including petrochemicals and batteries.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
