1. What Happened with the KPX Chemical Split?

KPX Chemical announced on August 28, 2025, that it will spin off its electronic materials business into a new company tentatively named ‘KPX Electronic Materials’. The existing KPX Chemical will focus on the urethane business, while KPX Electronic Materials will be responsible for the electronic materials business, including LCD cleaning agents, semiconductor etching solutions, and CMP PADs.

2. Why the Split?

KPX Chemical decided on the split to enhance expertise in each business segment, establish a responsible management system, expand growth opportunities in the electronic materials business, strengthen the competitiveness of the urethane business, and respond agilely to changes in the business environment. Ultimately, it aims to maximize corporate and shareholder value.

3. What’s the Investment Impact of the Split?

  • Positive Impacts: Enhanced business expertise and management efficiency, increased corporate/shareholder value, faster decision-making and market responsiveness, and diversification of management risks.
  • Negative Impacts: Short-term financial burden and increased operating costs, changes in market expectations and corporate value reassessment, potential decrease in business integration synergy, business environment uncertainty, and uncertainty about re-listing.

4. What Should Investors Do?

  • Short-term Investment Strategy: Make investment decisions after the split is complete and growth strategies for each business segment are announced. Monitor market conditions, raw material prices, and exchange rate fluctuations.
  • Long-term Investment Strategy: Analyze the growth potential of KPX Electronic Materials (electronic materials market outlook, new technology development, order status), evaluate the competitiveness of KPX Chemical (PPG market dominance, cost management, eco-friendly product development), and assess synergy and financial stability between the two companies.

This analysis is based on information disclosed to date, and the analysis may change depending on market conditions.