LG Chem to invest 4 trillion won a year in new businesses
The chemical company said Wednesday it would invest at least 4 trillion a year in battery material, new drugs and renewable energy material businesses every year.
Another 1 trillion won will be invested in their research and development.
"LG Chem plans to grow on the back of new growth engines, which are battery material, sustainable solutions and global new drugs," Shin said during a general shareholders meeting held Wednesday.
"Sustainable solution includes recyclable products, biodegradable materials and renewable energy materials."
LG Chem's battery material business will focus on cathode and anode materials as well as separators. It will look to diversify its clients away from its battery subsidiary LG Energy Solution.
Its medicine business will focus on developing new anti-cancer and diabetes drugs.
The company expects sales of the three new businesses to reach 30 trillion won by 2030, posting average annual growth of 30 percent.
LG Chem posted record net profit reported 3.95 trillion won in 2021, up 479.4 percent. Revenue came to 42.65 trillion won, up 42 percent.
Shin was approved to continue as an internal director position at the meeting.
The National Pension Service (NPS) has said it would vote against Shin's reappointment, claiming he holds responsibility for violating shareholder rights and destroying value because of the LG Energy Solution split-off.
The NPS owns 6.8 percent of LG Chem.
LG Corp., with 33.5 percent of the company, voted in favor of Shin's reappointment, and his term was extended for three years.
LG Chem's shares closed at 508,000 won per share Wednesday, up by 3.25 percent.
BY JIN EUN-SOO [firstname.lastname@example.org]