Palliser Capital Calls on LG Chem to Accelerate Value Enhancement Efforts and Strengthen Board Ahead of 2027 AGM

• Palliser welcomes LG Chem's first-ever share buyback and calls for more decisive action to address its persistent and substantial discount to net asset value
• Palliser identifies opportunity to strengthen Board composition through new independent directors whose experience and expertise align closely with the Company’s pressing needs

LONDON--(BUSINESS WIRE)--Palliser Capital ("Palliser"), one of the largest independent shareholders of LG Chem, Ltd. ("LG Chem" or the "Company"), today published a letter to the Company's Board of Directors welcoming its recent share buyback announcement, while calling for more ambitious and sustained action to address its persistent discount to net asset value ("NAV"), strengthen corporate governance and unlock long-term shareholder value.

The letter follows almost three years of constructive engagement between Palliser and LG Chem, including the publication of Palliser's LG Chem Value Enhancement Plan in October 2025 and majority-of-minority support for its governance-focused proposals at the Company's 2026 AGM.

Palliser welcomes LG Chem's announcement on 28 October 2026 of its first-ever KRW 300 billion share buyback and cancellation programme, funded through the monetisation of part of its stake in LG Energy Solution ("LGES"), as an important milestone in the Company's value-up journey. Palliser was also encouraged by management's acknowledgement during its Q3 earnings call that LG Chem's shares are materially undervalued and that shareholder perspectives had informed its decision to undertake the buyback.

However, Palliser believes the buyback, representing less than 2% of LG Chem's outstanding shares and only approximately 15% of the after-tax proceeds from the recent LGES monetisation, falls considerably short of the action warranted by the scale of the Company's persistent discount to NAV of approximately 76%, which remains close to its widest level on record.

In its letter, Palliser urges LG Chem to seize the opportunity presented by its forthcoming value-up update to demonstrate a more ambitious and sustained commitment to value creation through the following measures:

• Acknowledging LG Chem's substantial valuation discount: Recognising the Company's discount to NAV as the appropriate measure of undervaluation, and publicly disclosing and tracking this discount as a key performance indicator, with quantified targets for narrowing the gap over the near- to medium-term.
• Establishing clear return targets for its core businesses (excluding LGES): Setting return-on-equity and return-on-invested-capital targets, alongside ongoing strategic reviews of underperforming or non-core businesses and assets.
• Strengthening capital allocation and shareholder returns: Implementing a transparent, return-oriented capital allocation framework, including greater clarity on planned investments and measurable debt reduction targets, while establishing share buybacks as a meaningful and continuing component of shareholder returns.
• Reporting in detail on the work of the Compensation Committee: Ensuring transparency on aligning executive compensation more closely with shareholder interests, the performance of LG Chem's core businesses and the Company's value-up objectives.

In addition, with the period leading up to the 2027 AGM presenting an important opportunity to strengthen governance at LG Chem, Palliser believes there is scope to add independent directors with relevant industry, capital allocation and capital markets expertise to enhance the Board's capabilities, oversight and decision-making.

As part of its ongoing engagement, Palliser has been working with a leading international executive search firm with expertise in the Korean market to identify highly qualified independent director candidates. At LG Chem’s request, Palliser is prepared to share the outcome of this process as part of its ongoing dialogue with management to support a Company-led review of Board composition and director nominations ahead of the 2027 AGM, while preserving the possibility of a more direct role for shareholders in the nomination process should that become necessary.

Palliser believes LG Chem's forthcoming value-up update represents a critical opportunity for the Company to demonstrate that its recent buyback marks the beginning of a broader and more ambitious programme of value creation, rather than an isolated initiative. Palliser calls on the Board to build on this progress with concrete commitments to address the LG Chem Value Gap, strengthen governance and restore investor confidence, and remains committed to working constructively with the Company to achieve these objectives.

The full text of Palliser's letter is attached.

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.