LG Chem announced that its 2023 consolidated performance achieved revenue of KRW 55.25 trillion and operating profit of KRW 2.53 trillion. Revenue increased by 8.4% YoY, while operating profit decreased by 15.1% YoY.

Commenting on the performance, Dong Seok Cha, CFO, LG Chem, said: “It was a challenging year marked by extreme volatility due to external factors, including a global slowdown in demand. This led to a continued downturn in the petrochemical industry, coupled with market concerns over electric vehicle demand and a sharp decline in metal prices such as lithium, impacting our sales and profitability.”

Excluding LG Energy Solution, LG Chem’s revenue last year was approximately KRW 26.6 trillion. The company has set a target of KRW 27.8 trillion for this year’s revenue, a 5% increase YoY.

On business outlook, Dong Seok Cha mentioned that despite the difficult management environment continuing due to geopolitical risks in the Middle East, a global economic downturn, and a slowdown in the growth rate of electric vehicle demand, the year is anticipated to be a turning point for substantial growth and profitability improvement with the aim of fostering three new growth engines.

This expectation is based on intensifying the regional diversification strategy and accelerating the development of sustainability business in the Petrochemicals Company, increasing the shipment volume of cathode materials through diversification of customer projects in the Advanced Materials Company, and focusing on global clinical development led by AVEO in the Life Sciences Company.

Meanwhile, LG Chem reported consolidated revenue of KRW 13.13 trillion and operating profit of KRW 247.4 billion for the fourth quarter of the previous year. Compared to the same quarter of the previous year, this represents a 3.8% decrease in revenue, but an 18.2% increase in operating profit.