Industry Revenues:

• Petrochemicals: approx. 60%
• Fine Chemicals: approx. 25%
• Plastics: approx. 15%

TOP 3 Markets and their Percentage Shares:

• South Korea: approx. 35%
• China: approx. 25%
• USA: approx. 20%

Lotte Chemical Corporation generates the majority of its revenues from petrochemicals, followed by fine chemicals and plastics. The domestic market of South Korea is the largest single market, followed by China and the USA, which also have significant shares of the total revenue. These markets are crucial for the company as they represent both large production capacities and significant sales markets.

Production Sites:

• South Korea: Main production country with several large facilities, including in Yeosu, Daesan, and Ulsan.
• Malaysia: Production facilities in Pasir Gudang and Tanjung Langsat.
• USA: Facility in Lake Charles, Louisiana.
• Indonesia: Participation in a joint venture for petrochemical production.

Lotte Chemical Corporation operates a variety of production sites worldwide to manufacture its petrochemical products. The main production facilities are located in South Korea, where the company has its largest capacities. In addition, Lotte Chemical has significant production capacities in Malaysia and the USA, strategically positioned to efficiently serve the global market.

In recent years, the company has expanded its international presence through joint ventures and strategic investments in other countries, such as Indonesia. This enables Lotte Chemical to address regional market needs and optimize supply chains.

Revenue Growth: Estimated 3-5% annually (2026) Investment in Research and Development: Increase by 10% (2025)

Lotte Chemical Corporation pursues a strategy focused on diversification and innovation to secure future growth. The company plans to significantly increase its investments in research and development to develop new sustainable materials. This is intended not only to expand the product range but also to strengthen competitiveness in an increasingly environmentally conscious market.

In addition, Lotte Chemical is focusing on geographical expansion, particularly in emerging markets in Asia and Africa, to tap into new revenue sources. Through strategic partnerships and joint ventures, the company aims to expand its market presence internationally.

Another key focus is on the digitization and automation of production processes to achieve efficiency gains and reduce operating costs. These measures are intended to increase profitability and make the company more resilient to global market changes.

Main raw materials: Ethylene, Propylene, Benzene, Toluene, Xylene

Main importing countries: Saudi Arabia, United Arab Emirates, USA, Australia

Lotte Chemical Corporation imports a variety of raw materials essential for the production of its petrochemical products. Ethylene and Propylene, which serve as basic materials for many chemical processes, are mainly imported from the USA and Saudi Arabia. These countries are leading in the production of petrochemical raw materials and offer competitive prices.

Benzene, Toluene, and Xylene, which are also important raw materials for Lotte Chemical, are sourced from the United Arab Emirates and Australia. These countries have extensive resources and well-developed infrastructure for exporting these materials.

The strategic diversification of sourcing allows Lotte Chemical to increase supply security and benefit from global price advantages.

Market share in the chemical industry: 5% (estimated for 2026)
R&D expenses: 3.2% of revenue (2025)
EBITDA margin: 12.5% (2025)

Lotte Chemical Corporation has a moderate competitive advantage in the global chemical industry. The company benefits from a diversified product portfolio and a strong presence in Asia, which secures it a stable market share of about 5%.

Investments in research and development, accounting for 3.2% of revenue, enable Lotte Chemical to develop innovative products and respond to market changes. These R&D expenses are competitive in the industry comparison, allowing the company to stand out from competitors.

The EBITDA margin of 12.5% shows that Lotte Chemical operates efficiently and is able to generate solid profits. This is an indicator of good cost control and operational efficiency, helping the company to remain competitive even in a volatile market environment.

Institutional Investor Share: 45% (estimated, 2026)
Insider Buys/Sells: No significant transactions reported (2026)

The institutional investor share in Lotte Chemical Corporation is estimated to be around 45%. This figure reflects the interest of large investment funds and institutional investors who typically make long-term investments.

In 2026, no significant insider buys or sells were reported. This could indicate that the management and other insiders currently do not expect significant changes in the company's valuation. Such transactions are often seen as an indicator of executives' confidence in the company's future performance.

Market share of Lotte Chemical Corporation: 6% (estimated for 2026)

Main competitors and their market shares:

1. LG Chem: 12%
2. SK Innovation: 10%
3. Hanwha Solutions: 8%
4. Kumho Petrochemical: 7%
5. Lotte Chemical Corporation: 6%
6. OCI Company: 5%
7. Hyosung Chemical: 4%
8. KCC Corporation: 3%
9. HDC Hyundai EP: 2%
10. Kolon Industries: 2%

Lotte Chemical Corporation has a moderate market share compared to its competitors. The company's moat is characterized by its vertical integration and strong presence in Asia. These factors enable Lotte Chemical to reduce costs and produce more efficiently.

However, compared to its competitors, Lotte Chemical does not have a significant technological advantage or superior product differentiation that could be considered a strong moat. Companies like LG Chem and SK Innovation may have a stronger moat through their investments in research and development as well as their broader product range.

In summary, Lotte Chemical operates in a competitive market where some competitors have stronger competitive advantages through innovation and diversification.

Revenue Growth: 8.5% (2025) Profit Growth: 6.2% (2025) R&D Investments: 5.1% of revenue (2025)

Lotte Chemical Corporation achieved a revenue growth of 8.5% in 2025, attributed to strong demand in its main markets and successful expansion into new business areas. The 6.2% profit growth indicates the company's ability to effectively manage costs and maintain its margins.

The company continues to invest heavily in research and development, at 5.1% of revenue, to expand its product range and develop innovative solutions. These investments could lead to a stronger market position and higher margins in the long term.

Additionally, Lotte Chemical has expanded its production capacities in recent years and formed new strategic partnerships, increasing the potential for future growth. These factors suggest that the stock could be a promising investment, especially for investors focusing on long-term growth.

Dividend Yield: 3.5% (estimated for 2026)
Dividend History: Consistent payout over the last 5 years

Lotte Chemical Corporation has regularly distributed dividends to its shareholders in recent years. The dividend yield is estimated to be around 3.5% for 2026, based on the last known payouts and the current market situation.

The reliability of Lotte Chemical's dividend payments is considered high, as the company has pursued a consistent dividend policy over the past five years. This stability is supported by a solid financial foundation and a strong position in the chemical industry. Analysts believe that the company will continue to be able to pay dividends in the future, provided that no significant economic or industry-specific challenges arise.