Recently, LG Chem disclosed that due to the dual impact of weak global market demand and oversupply of products, the company's net loss in the fourth quarter of 2025 expanded significantly year-on-year, reaching 1.57 trillion won, with evident pressure on performance. As one of the company's core business segments, the performance of the petrochemical business has become a key factor dragging down overall results. LG Chem stated that in the fourth quarter of 2025, its petrochemical business achieved sales of 3.95 trillion won, a significant decline from 4.89 trillion won in the same period of 2024. The operating loss further widened to 239 billion won, far exceeding the 101 billion won loss in the same period last year. It is reported that the intensified losses in this business are primarily due to two factors: one-time costs incurred from overseas operations and narrowing product price differentials caused by increased regional product shipments, with both pressures jointly undermining business profitability.

Regarding the business outlook for 2026, LG Chem provided a cautiously optimistic forecast. The company expects overall sales in 2026 to reach 16.6 trillion won, a slight decrease from 17.9 trillion won in 2025. Although the market environment for the full year is expected to remain largely similar to previous quarters, LG Chem stated that it will continue to implement cost-reduction measures to improve profitability. The company has already reduced capital expenditures and enhanced fund utilization efficiency by adjusting investment pace and optimizing existing resources.

Notably, amid overall performance pressure, the company's high-value-added products have maintained stable performance. Products such as isopropyl alcohol (IPA) for semiconductors and solution-polymerized styrene-butadiene rubber (SSBR) for tires have demonstrated strong profitability, serving as important pillars supporting the company's development. LG Chem has made it clear that it will further focus on high-value-added application areas, continuously optimize its business layout, and drive product structure upgrades.

Additionally, LG Chem's strategic initiatives in the green energy sector are steadily progressing. It is reported that the joint venture established with Italy's Enilive officially commenced construction in Daesan, South Korea, in August 2025, for the production of hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF). The plant is scheduled for completion in 2027, with an annual processing capacity of approximately 400,000 tons of renewable bio-based raw materials. The products will be applied in various fields, including electronics, automotive, and sporting goods, helping the company build a foundation for low-carbon development and cultivate new growth engines.