LG Chem CEO vows to preserve cash, improve efficiency to cushion virus fallout

07-Apr-2020 Intellasia | KoreaTimes | 6:02 AM Print This Post

LG Chem CEO Shin Hak-cheol urged his employees to work on preserving cash and improving work efficiency to combat the ongoing economic crisis caused by the COVID-19 pandemic, the chemical products and battery manufacturer of LG Group said Monday.

In a message sent to employees, Shin said the company has to focus on three principles ? “control what we can control,” “preserve cash” and “don’t mortgage your future.”

His remark came while the world has entered a recession as the spread of the coronavirus virtually halted countries and their economies.

Diagnosing the current circumstances surrounding the global economy, Shin said the beginning phases of the coronavirus pandemic economic fallout may have already started.

“The year 2020 just passed its first quarter but the global financial and oil markets are struggling with rapid changes sparked by the COVID-19 pandemic. Maybe this is the beginning of a crisis worse than the 2008 Financial Crisis,” he said.

While the company has faced numerous uncertainties, LG Chem also has been in a legal tussle with its domestic rival SK Innovation over the latter’s alleged theft of trade secrets related to the former’s battery-making technology.

The US International Trade Commission sided with LG Chem, issuing a default judgment against SK after finding the latter in contempt of court for spoliation of evidence. But LG is scheduled to face domestic legal struggles against SK starting next month, costing the company time and money.

Stating that increasing uncertainties have become the new normal, the CEO urged employees to take this crisis as an opportunity to leap forward.

“There’s no reason to be glum. When the world faced the 2008 crisis, many companies saw their sales and operating profits plummet but some companies took the crisis as a chance for growth,” Shin said.

Sharing the ways to escape the crisis, Shin said they need to focus on what they can do right now, which is reducing failure costs and improving productivity and work efficiency.

Boosting liquidity and carrying forward its investment plan without change are other ways to respond, he added.



Category: Korea

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