LG화학의 LG에너지솔루션 분할설립과 ESG경영에 대한 회계적 고찰

Abstract

[Purpose]This study analyzes the accounting treatment for the corporate spin-off through a case analysis, and examines the relationship between the corporate spin-off and ESG management. Specifically, we study the accounting treatment for the establishment of LG Energy Solutions by LG Chem in December 2020, and examine the impact of the spin-off decision on the ESG management of LG Chem and LG Energy Solutions.
 [Methodology]We examine the accounting treatment on the spin-off in accordance with the K-IFRS and analyze the detailed accounting process through the audit report of LG Chem and LG Energy Solutions. In addition, by comparing the ESG ratings of LG Chem and LG Energy Solutions with companies in the same industry, we review the relationship between spin-off and ESG management.
 [Findings]LG Chem operates the petrochemical business, battery business, advanced materials business, and life science business. Among them, the petrochemical business and battery business account for more than 80% of total revenue and net assets. LG Chem has received relatively lower grades than its competitors in the environment sector of ESG rating. This implies the possibility of suffering losses in the ESG rating due to the petrochemical business, despite the possibility of receiving better rating in the battery business. In order to improve the ESG rating, LG Chem needs to increase the year-on-year improvement rate of each indicator.
 [Implications]The case analysis of this study is expected to contribute to accounting education by examining the accounting treatment of the corporate spin-off and analyzing the case of LG Chem in detail. In addition, it is meaningful that it has expanded previous research by anlyzing the relation between the corporate spin-off and ESG management which is a non-financial factor.