LGI VN (IFC-48933)

Countries
  • Vietnam
Geographic location where the impacts of the investment may be experienced.
Specific Location
Hai Phong
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 3, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
LG Innotek Vietnam Haiphong Co., Ltd
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,000.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 15, 2025

Disclosed by Bank Oct 24, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed IFC investment is a Sustainability-Linked Loan (“SLL”) of up to US$200 million to LG Innotek Vietnam Haiphong Co., Ltd. (“LGI VN” or the “Company”), a wholly owned subsidiary of LG Innotek Co., Ltd. (“LGI” or the “Sponsor”).

Proceeds from the proposed SLL will be used to expand the Company’s production capacity for smartphone camera modules as part of the approximately US$1 billion capex program to build a new factory in Trang Due Industrial Park, Hai Phong, Viet Nam. The proposed SLL will help reduce Greenhouse Gas (“GHG”) emissions.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This is a Category B Project according to IFC’s Policy on Environmental and Social Sustainability (2012). Key E&S risks and issues associated with this project include the group and site-level management and monitoring systems to assess and manage E&S risks and impacts from its operations, supply chain management as well as those related to the construction of new plant covered under the project,  management of labor and working conditions and occupational health and safety (OHS) policies and practices, monitoring and management of air emissions, waste and wastewater and hazardous materials,  management of life and fire safety, and the company's stakeholder engagement activities related to E&S aspects.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total Project’s cost is estimated to be US$1 billion, a part of which will be funded by an IFC A Loan of up to US$200 million.

IFC's Investment as Approved by the Board: Loan 250.0 million (USD)

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Headquartered in Seoul, South Korea, LG Innotek Co., Ltd. - LGI is one of the leading electronic components manufacturers, focusing on optic solutions for smartphones, substrates for semiconductors, as well as automotive components. The Sponsor is listed on the Korea Exchange and is 40.79% owned by LG Electronics of South Korea as of December 31, 2023.

LG Innotek Vietnam Haiphong Co., Ltd. is a wholly owned subsidiary of LG Innotek Co., Ltd.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - LG Innotek Co., Ltd. Parent Company -
- - - - LG Innotek Vietnam Haiphong Co., Ltd. Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

LG INNOTEK VIETNAM HAIPHONG CO., LTD.
Yeungjoon Yun
Chief Financial Officer
+84 901588939
Jykim83@lginnotek.com
I3, I4, Trang Due Industrial Park within the Dinh Vu-Cat Hai Economic Zone in Hai Phong, Vietnam
https://www.lginnotek.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works