WEBULL

LG Chem, Ltd.'s (KRX:051910) biggest owners are retail investors who got richer after stock soared 8.5% last week

Simply Wall St · 07/02 03:39

Key Insights

  • The considerable ownership by retail investors in LG Chem indicates that they collectively have a greater say in management and business strategy
  • 50% of the business is held by the top 10 shareholders
  • Institutions own 28% of LG Chem

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To get a sense of who is truly in control of LG Chem, Ltd. (KRX:051910), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 41% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, retail investors benefitted the most after the company's market cap rose by ₩1.4t last week.

Let's take a closer look to see what the different types of shareholders can tell us about LG Chem.

See our latest analysis for LG Chem

ownership-breakdown
KOSE:A051910 Ownership Breakdown July 2nd 2025

What Does The Institutional Ownership Tell Us About LG Chem?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

LG Chem already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at LG Chem's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
KOSE:A051910 Earnings and Revenue Growth July 2nd 2025

LG Chem is not owned by hedge funds. The company's largest shareholder is LG Corp., with ownership of 32%. For context, the second largest shareholder holds about 7.8% of the shares outstanding, followed by an ownership of 2.8% by the third-largest shareholder.

We also observed that the top 10 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of LG Chem

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data suggests that insiders own under 1% of LG Chem, Ltd. in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own ₩174m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 41% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 32% of LG Chem. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for LG Chem you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.