Seoul: LG Chem Ltd., South Korea's leading chemical company, announced a net loss in the second quarter, attributed to increased costs and a depreciating won. The company reported a net loss of 111.9 billion won (US$80.9 million) for the three months ending June 30, a significant shift from a net profit of 59.79 billion won during the same period last year.
According to Yonhap News Agency, the core petrochemical segment of LG Chem experienced an operating loss of 90.4 billion won. This downturn was influenced by reduced demand, which the company attributes to uncertainties stemming from changing U.S. tariff policies and unrest in the Middle East. Additionally, the depreciation of the won against the U.S. dollar resulted in increased overseas interest payments, further impacting the company's financial performance.
LG Chem's shareholding gains from major affiliates, such as LG Energy Solution Ltd., were affected by a prolonged slowdown in global electric vehicle (EV) sales. LG Chem holds an 81.84 percent stake in this leading battery maker. Despite these challenges, the company's operating profit rose by 21.5 percent to 476.8 billion won in the second quarter, up from 392.5 billion won a year ago. Nevertheless, sales fell by 6.7 percent year-on-year to 11.41 trillion won, down from 12.24 trillion won.
For the first half of 2025, LG Chem's net income decreased by 63 percent, falling to 148.5 billion won from 401.5 billion won a year earlier.