1. What Happened?: LG Chem’s H1 Report and NCC Split Announcement

LG Chem’s H1 2025 report revealed strong performance from LG Energy Solution and growth in advanced materials and life sciences. However, the petrochemical division continues to struggle with losses. The announcement to consider splitting off the NCC business has added another layer of complexity.

2. Why It Matters: Petrochemical Struggles vs. Future Growth Drivers

The underperformance of the petrochemical division weighs heavily on LG Chem’s overall results. Meanwhile, LG Energy Solution, advanced materials, and life sciences are seen as key growth drivers for the future. The proposed NCC split is intended to strengthen the petrochemical business but also introduces uncertainty.

3. What To Do: Investment Strategy and Considerations

LG Chem has long-term growth potential, but short-term performance may be affected by the uncertainties surrounding the petrochemical division and macroeconomic factors. Investors should closely monitor future announcements regarding the NCC split and the petrochemical division’s turnaround efforts. The current investment recommendation is ‘Hold,’ and strategies should be reevaluated as the situation evolves.

4. Investor Action Plan: Ongoing Monitoring and Information Gathering

  • Monitor petrochemical division performance and turnaround strategy.
  • Follow announcements regarding the NCC split and market reactions.
  • Assess the continued growth of LG Energy Solution, advanced materials, and life sciences.
  • Track changes in macroeconomic factors (exchange rates, oil prices, interest rates).