Palliser Capital Presents Recommendations to LG Chem to Unlock its Deep Discount and Lead the Charge for South Korea’s Capital Market Reform

• Palliser releases presentation unveiled at 13D Monitor Investor Summit: Unlocking LG Chem’s Deep Discount
• Presentation outlines four-step value enhancement plan to address KRW 69 trillion (US$48 billion) value gap and unlock more than 100% upside on current share price

LONDON--(BUSINESS WIRE)--Palliser Capital (“Palliser”), a top 10 shareholder of LG Chem (“the Company”) with a long-term stake of over 1% in the Company, today unveiled a comprehensive presentation outlining actionable steps the Company’s management can take to unlock over 100% upside on LG Chem’s current share price. This presentation was delivered to attendees of 13D Monitor’s 2025 Active-Passive Investor Summit in New York.

Palliser’s presentation highlights that LG Chem trades at an extreme 74% discount to NAV, the widest among all Korean conglomerates, resulting in a value gap of KRW 69 trillion (US$48 billion). LG Chem is currently valued as a bottom-of-the-cycle petrochemical company with little credit for its 79% stake in LG Energy Solution (“LGES”) – the third most valuable company listed in Korea’s KOSPI index – worth over 3x LG Chem’s market capitalization.

Palliser’s proposed LG Chem Value Enhancement Plan intends to unlock significant value for shareholders by addressing this steep discount, restoring investor trust and positioning LG Chem at the forefront of initiatives to end the “Korean Discount.”

The LG Chem Value Enhancement Plan includes the following key steps:

1. Enhance board composition and better align management compensation with shareholder interests
2. Implement a robust and return-oriented capital allocation framework
3. Execute a highly accretive buyback-in-kind utilizing the Company’s significant stake in LGES
4. Implement an open-ended, long-term discount management program

James Smith, Palliser’s Founder and CIO, said: “We see a seismic opportunity for LG Chem to adopt bold initiatives that embody the ‘LG Way’ philosophy and take on the responsibility, as a national leader, to support South Korea’s corporate and economic reforms and in particular President Lee’s ‘KOSPI 5,000’ vision. Our team appreciates the extensive engagement with the Company and its C-suite management team, and we look forward to continuing an open dialogue as we work towards our shared goal of ensuring LG Chem reaches its full potential.”

Full details of the presentation are outlined in the accompanying attachment.

About Palliser Capital

Palliser Capital is a global multi-strategy fund. Our value-oriented investment philosophy is applied to a broad range of opportunities across the capital structure with a focus on situations where positive change and value enhancement can be achieved through thoughtful, constructive and long-term engagement with companies and across a range of different stakeholder groups.