LG Chem cuts naphtha supply prices for small-business customers

LG Chem said Monday it will use a government naphtha subsidy to support small and medium-sized enterprise customers and strengthen cooperative ties with them.

The support targets customers that manufacture everyday essential materials such as vinyl and packaging. Effective for shipments from May onward, LG Chem will temporarily reduce prices by 100,000 won ($65) to 200,000 won per ton, with the exact cut determined by each product's naphtha content and pricing. Customers have already been notified, and the measure is set to take effect from June.

The move comes after the government proactively established a naphtha subsidy framework and set its direction, with LG Chem stepping up to put cooperative support for small and medium-sized enterprises into practice. The company said it aims to ease the cost burden on smaller customers and help lower the price of everyday consumer materials.

"This support decision was made as a gesture of partnership toward our small and medium-sized customers, who have continued to trust and use LG Chem products — despite many difficulties — based on confidence in our product quality and supply stability," LG Chem CEO Kim Dong-chun said. "We also extend our gratitude to the government for providing unprecedented and swift support to domestic petrochemical companies struggling with naphtha supply disruptions and price surges."