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Palliser Seeks to Establish Minority Shareholder Voice at LG Chem as Company Continues to Ignore Deep Valuation Discount

  • Palliser Publishes “Recharge LG Chem” Presentation Ahead of March 31 General Meeting of Shareholders
  • Outlines Governance Mechanisms to Amplify Minority Shareholder Voices and Address 71% NAV Discount
  • Palliser Urges Shareholders to Support Reform Proposals at LG Chem’s Upcoming General Meeting

LONDON--(BUSINESS WIRE)--Palliser Capital (“Palliser”), a top 10 shareholder of LG Chem, Ltd (“LG Chem” or the “Company”) today published a comprehensive presentation to “Recharge LG Chem” in advance of the Company’s Ordinary General Meeting of Shareholders (“AGM”) on March 31, 2026 with important information for shareholders about how Palliser’s shareholder proposals will help LG Chem unlock its deep discount and lead South Korea’s corporate and economic reforms.

James Smith, Founder and CIO of Palliser, said: “Minority shareholders deserve best-in-class governance structures that align management and shareholder interests and promote genuine shareholder engagement. While we were reassured to see the Company take some initial steps in the right direction following the submission of our proposals, those actions remain limited and lack the structural safeguards necessary to deliver meaningful reform. We encourage shareholders to support our proposals at the upcoming AGM and believe constructive engagement can help position LG Chem for stronger governance and sustained long-term value creation.”

The presentation highlights LG Chem’s unprecedented 71% discount to NAV, an urgent situation the Company has failed to wholly acknowledge, never mind decisively address. Contrary to the stated goals of the heavily criticized 2020 split-off of LG Chem Energy Solutions (“LGES”), the Company’s shares have underperformed for the past decade. Shareholder value has suffered for long enough and meaningful change is now needed. Palliser therefore urges shareholders to review its proposals, which include:

  • Article #2.7 (Advisory Shareholder Proposals): Amending LG Chem’s Articles of Incorporation to enable shareholders who meet minimum size and length of holding thresholds to submit non-binding advisory shareholder proposals at shareholders meetings—promoting shareholder engagement and transparency on long-term, sustainable, core value-up principles.
    • Article #3.1 – 3.3 (Sub-Advisory Proposals): Disclosure of discount to NAV as a major financial indicator in LG Chem’s corporate value-up plan; a review of existing executive compensation structures; and updates to the Shareholder Return Policy to further increase the monetization of LG Chem’s LGES stake.
  • Article #2.8 (Appointment of a Lead Independent Director): Amending LG Chem’s Articles of Incorporation to appoint a Lead Independent Director (“LID”) with specific responsibilities to serve as a representative of the independent directors and act as a bridge between the Board and minority shareholders. The LID would be selected from among the separately elected members of the Audit Committee, highlighting the LID’s enhanced mandate from (and responsibilities to protect) minority shareholders.

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

About Palliser Capital
Palliser is an alternative investment manager that applies a value-oriented, event-driven philosophy to investing across a range of distinct yet complementary strategies on a global basis 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.

Contacts

Prosek Partners
Kiki Tarkhan / Forrest Gitlin
Pro-Palliser@Prosek.com

Palliser Capital


Release Versions

Contacts

Prosek Partners
Kiki Tarkhan / Forrest Gitlin
Pro-Palliser@Prosek.com

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