Is LG Chem (051910) Halal?

KSC Basic Materials South Korea $24.5T
✗ NOT HALAL
Confidence: 90/100
LG Chem (051910) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 107.1% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. LG Chem operates in the Basic Materials sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 107.1%
/ 30%
31.6%
/ 30%
32.0%
/ 30%
0.72%
/ 5%
✗ NOT HALAL
DJIM 107.1%
/ 33%
31.6%
/ 33%
32.0%
/ 33%
0.72%
/ 5%
✗ NOT HALAL
MSCI 29.2%
/ 33%
8.6%
/ 33%
8.7%
/ 33%
0.72%
/ 5%
✓ HALAL
S&P 107.1%
/ 33%
31.6%
/ 33%
32.0%
/ 33%
0.72%
/ 5%
✗ NOT HALAL
FTSE 29.2%
/ 33%
8.6%
/ 33%
8.7%
/ 50%
0.72%
/ 5%
✓ HALAL

Financial Highlights

Dividend Yield
64.0%
EV/EBITDA
12.9
EV: $61.7T
Revenue
$45.9T
Beta
1.2
High volatility
Current Ratio
1.1

Profitability

Gross Margin 17.0%
Operating Margin -3.7%
Net Margin -4.0%
Return on Equity (ROE) -3.8%
Return on Assets (ROA) -0.3%

Cash Flow & Balance Sheet

Operating Cash Flow$8.2T
Free Cash Flow-$5.6T
Total Debt$33.8T
Debt-to-Equity71.8
Current Ratio1.1
Total Assets$101.1T

Price & Trading

Last CloseKRW 314,000.00
50-Day MAKRW 327,130.00
200-Day MAKRW 316,577.50
Avg Volume393K
Beta1.2
52-Week Range
KRW 181,500.00
KRW 428,500.00

About LG Chem (051910)

CEO
Mr. Dong Seok Cha
Sector
Basic Materials
Industry
Chemicals
Country
South Korea
Exchange
KSC
Market Cap
$24.5T
Currency
KRW

LG Chem, Ltd., together with its subsidiaries, operates as a chemical company in Korea, China, Asia/Oceania, the United States, Europe, and internationally. It offers ethylene-based synthetic resin products, such as ethylene vinyl acetate, high density polyethylene, low density polyethylene, linear low-density polyethylene, polyolefin elastomer, polyvinyl chloride, metallocene PE, and UNIQABLE, a recyclable all-PE packaging solution; and styrene-based synthetic resin, including acrylonitrile butadiene styrene, acrylonitrile styrene acrylate, expandable polystyrene, polystyrene, styrene acrylonitrile copolymer. The company also provides polycarbonate, a benzene-based synthetic resin product; polypropylene, a propylene-based synthetic resin; superabsorbent polymer; butadiene rubber, nitrile butadiene rubber, nitrile butadiene rubber latex, styrene butadiene latex, and solution styrene butadiene rubber; caustic soda; plasticizer; and base oil. In addition, it offers bisphenol A; acrylate, alcohol, isopropyl alcohol, methacrylate butadiene styrene, neopentyl glycol, and styrene butadiene styrene; aerogel; anode binder and carbon nanotube; KEYFLEX BT, KEYFLEX TO, LUCEL, LUCON, LUMID/LUXY, LUMILOY, LUMIPLAS, LUPOL, LUPOS, LUPOX/LUMAX, LUPOY, and LUSEP high-performance plastics; display materials; adhesives for automotive bodyshop and cathode material paintshop, cathode material, dispersant for conductive agent, flame barrier material, and separators. Further, the company provides semiconductor materials and automobiles materials; life science products for arthritis, diabetes, growth hormone, fertility, anemia, anti-adhesive agent, antimicrobials, bovine somatotropin, vaccines, and crop protection agents. LG Chem, Ltd. was founded in 1947 and is headquartered in Seoul, South Korea.

Related Halal Stocks in Basic Materials

Frequently Asked Questions

Is LG Chem (051910) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), LG Chem is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is LG Chem's debt ratio?

LG Chem's debt ratio is 107.1% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 29.2%.

What are LG Chem's key financial metrics?

LG Chem has a market capitalization of $24.5T, and revenue of $45.9T. The company maintains a gross margin of 17.0% and a net margin of -4.0%. Return on equity stands at -3.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.