Seoul: LG Chem Ltd., South Korea's leading chemical company, announced on Thursday that its fourth-quarter net losses have increased significantly compared to the previous year due to a slowdown in its key sectors: petrochemicals and battery materials. The company's net losses for the quarter ending in December rose to 1.57 trillion won (US$1.1 billion), up from 899.2 billion won during the same period in 2024, as per the regulatory filing.
According to Yonhap News Agency, the company's Chief Financial Officer (CFO), Cha Dong-seok, commented on the challenging business environment, highlighting that rapidly changing conditions and rising uncertainties have affected the core petrochemical and battery materials sectors, which in turn impacted the company's bottom line. In response, LG Chem has undertaken measures to address these challenges by reorganizing its business portfolio, investing in planned facilities, and selling assets to secure liquidity.
The decreased gains from equity stakes in affiliates, including LG Energy Solution Ltd., the country's largest battery maker, also contributed to the weaker quarterly results. LG Energy Solution reported a net loss of 772.5 billion won in the fourth quarter.
LG Chem's operating losses widened to 413.3 billion won in the fourth quarter, compared to 261 billion won a year earlier. Additionally, sales experienced a downturn, falling 8.8 percent to 11.19 trillion won from 12.28 trillion won.
For the entire year of 2025, LG Chem swung to a net loss of 977.1 billion won from a net profit of 515 billion won in the previous year. However, the company's full-year operating profit saw a 35 percent increase, reaching 1.18 trillion won from 874.9 billion won, despite a 5.7 percent decline in sales to 45.93 trillion won.