LG Chem Sells Aesthetic Unit, Spurring Portfolio Shift 
　　The Company Completes Sale of Non-Core Asset as Part of Broader Restructuring

LG Chem is continuing the sale of non-core assets by completing the sale of its aesthetic business. Following the conclusion of the sale of the Water Solutions (water treatment filter) business at the end of last year, the company put an end to the sale of the aesthetic business in the first quarter of this year.

Analysis suggests that LG Chem is speeding up the restructuring of its business portfolio centered on high-value products by continuing to sell non-core assets.

According to the industry on May 19, LG Chem completed the sale of its aesthetic business and its stake in the Chinese aesthetic subsidiary, LG Jiansheng Technology, in February.

「LG健生（LG Jiansheng）」は、LG化学（LG Chem）と、中国の杭州健生が2021年に設立した中国の合弁会社（愛尔集健生科技・LG Jiansheng Life Sciences）。主に中国市場において、LG化学が展開するヒアルロン酸フィラー（伊婉・致 / YVOIRE、Y-SOLUTION）などの医療美容・医薬品の販売・流通を担っていた。

In August last year, LG Chem decided to sell the aesthetic business to VIG Partners, a domestic private equity fund management company, for 200 billion won (approximately $153.85 million).
Subsequently, the company completed the sale process in February this year.

In June last year, LG Chem decided to sell the Water Solutions business to Glenwood Private Equity, a domestic private equity fund management company, for 1.4 trillion won, and concluded the sale in December of the same year.

Accordingly, the scale of non-core assets sold by LG Chem from the second half of last year to the first quarter of this year amounts to 1.6 trillion won.

LG Chem is restructuring its business portfolio around high-value products while maintaining financial soundness through the sale of non-core assets.

Analysis indicates that this aligns with the strategy of fostering high-value electronic materials promoted by LG Chem President Kim Dong-choon.

President Kim Dong-choon, who is leading LG Chem after being appointed as an internal director at the regular general meeting of shareholders in March this year, is fostering high-value electronic materials as a core pillar of future growth.

The strategy is to rapidly expand the high-value electronic materials business in line with the proliferation of artificial intelligence semiconductors, autonomous driving, and next-generation displays.

LG Chem plans to expand the annual sales of its electronic materials business, currently at the scale of 1 trillion won to 2 trillion won by 2030.
To this end, the company has integrated and is operating an advanced research and development organization related to semiconductors, automotive electronics, and next-generation displays under the Advanced Materials Research Institute. This concentrates LG Chem’s core competencies in precision material design, synthesis, and processing technology in one place.

An industry official said, “LG Chem is seeking to restructure its business portfolio centered on high-value products by continuing to sell non-core assets amid the prolonged slump in the petrochemical business,” and added, “The growth speed of the high-value electronic materials business emphasized by President Kim Dong-choon is expected to accelerate.”