LG Chem CEO and Vice Chairman Shin Hak-cheol speaks at the firm's general shareholders' meeting at LG Twin Towers on Yeouido, Seoul, Wednesday. Courtesy of LG Chem

By Lee Kyung-min

LG Chem CEO and Vice Chairman Shin Hak-cheol has been reappointed as an inside director, underpinned by overwhelming support of LG Corp., its largest shareholder with a 33.5 percent stake, the firm said Wednesday.

The retention of the highly controversial figure overrides fierce opposition from LG Chem's minor shareholders. They are furious over the stock price losing half of its value over the past year, due in large part to the firm having spun off its key battery business into LG Energy Solution in 2020 under Shin's leadership.

Also sharing the need to hold LG Chem accountable was the National Pension Service (NPS), the firm's second-largest shareholder with a 6.8 percent stake. The state-run pension fund voted against the reappointment, saying that LG Chem's spinoff has led to a significant deterioration in corporate value and infringement of shareholders' rights.

However, a slew of agenda items proposed including the reappointment of Shin passed without any complications at a regular shareholders meeting.

Shin reiterated his growth vision after the reappointment was approved.

"Our growth plan will prioritize the development of battery input materials, global new drugs, biodegradable and renewable energy materials, all future growth drivers of the company," he said.

LG Chem will, he added, invest over 4 trillion won ($3.2 billion) annually, coupled with an annual investment of at least 1 trillion won in research and development to develop core technologies.

The expected sales of the three new businesses will amount to 30 trillion won by 2030, following year-on-year growth of 30 percent over the next nine years.

"We will achieve growth, propped up by the full implementation of our core strategies with agile adjustments to the rapidly changing business landscape," he said.

LG Chem's share price closed at 508,000 won, Wednesday, up 3.25 percent from the previous session. It has lost about half of its value from Jan. 15, 2021, when it hit 1.05 million won.