1. What’s Happening?: Potential Sale of Yeosu NCC Plant No. 2

LG Chem officially confirmed the possibility of selling its Yeosu NCC Plant No. 2 in a regulatory filing on August 26, 2025. While not yet finalized, the sale is being considered as a strategic option to enhance the competitiveness and value of its petrochemical business.

2. Why?: Addressing Petrochemical Struggles and Securing Future Growth

LG Chem’s petrochemical business has been facing prolonged challenges due to the global economic slowdown and oversupply. The potential sale of the NCC plant is interpreted as a strategic move to streamline assets, improve financial structure, and redirect resources towards future growth engines like battery materials, life sciences, and advanced materials.

3. What’s Next?: Analyzing Potential Scenarios

  • Positive Scenario: A successful sale could improve LG Chem’s financial health, enabling increased investment in future growth areas and driving higher corporate value.
  • Negative Scenario: Delays or failure to sell the plant could prolong the struggles in the petrochemical business and hinder investment in key growth sectors.

4. What Should Investors Do?: Short-Term and Long-Term Strategies

  • Short-Term Strategy: A cautious approach is recommended until uncertainties surrounding the sale are resolved. Investors should closely monitor related news and filings, adapting their strategies to market changes.
  • Long-Term Strategy: Focus on the competitiveness of LG Chem’s high-growth sectors like LG Energy Solution, life sciences, and advanced materials, while observing the restructuring process in the petrochemical business to identify long-term investment opportunities.