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DEEP RESEARCH · LX INTERNATIONAL/TRADING COMPANIES

[LX International] Comparing Korean General Trading Companies

A comparison of LX International, POSCO International, and Samsung C&T by business model, new businesses, earnings, and shareholder returns

Date: 2025-02-09 · General trading-company comparison · Naver Blog

Investment decisions are your own responsibility. This material is research and is not a buy or sell recommendation.

0. Bottom line first

All three companies have different strengths, but in the post's framework POSCO International has the best balance of growth and shareholder return. LX International has dividend appeal but remains exposed to resource cycles, while Samsung C&T has stability and intrinsic value but a more dispersed direct shareholder-return appeal.

LX

Dividend and resource optionality

It is broadening into nickel, palm oil, biomass, and glass materials, but traditional resource cycles such as coal still matter.

POSCO

Growth plus dividends

The key structure combines the energy merger, gas fields, motor cores, wind power, and graphite sourcing.

Samsung C&T

Stability and equity value

Construction, trading, fashion, resorts, and holdings provide defense, but trading-segment profitability and dividends are limited.

1. Business-model comparison

CompanyCore businessNew-business directionWeakness in the source view
LX InternationalResource development, trading, new growthIndonesian nickel mines, smelting, battery recycling, eco materials, Poseung Green Power, LX GlassEarnings volatility from coal and other resource-price cycles
POSCO InternationalGlobal trading, natural-gas E&P, energyOffshore wind, hydrogen, motor cores, Tanzanian graphite, food businessSteel-trading revenue volatility, partly offset by energy profits
Samsung C&TConstruction, trading, fashion, resorts, holdings valueSolar, BESS, green hydrogen/ammonia, renewable partnershipsLower stand-alone trading profitability and lower direct dividend appeal

2. LX International: dividend appeal and resource cycles

Official fact: The post says LX International operates resource development, trading, and new growth businesses, and is pursuing coal and nickel mine development in Indonesia, Australia, and China. In 2024 it pursued an Indonesian nickel mine acquisition, battery recycling, and eco-friendly materials.

Official fact: 2023 consolidated revenue was KRW 14.5143 trillion and operating profit was KRW 433.1 billion. Operating profit rose into the KRW 900 billion range during the 2022 resource boom, then fell about 54% in 2023. Preliminary 2024 results were revenue of KRW 16.6376 trillion and operating profit of KRW 489.2 billion, up 14.6% and 13% respectively.

Interpretation: LX International is attractive for dividend-focused investors, but the key question is how much nickel, renewables, and materials can reduce resource-cycle volatility.

3. POSCO International: the most balanced candidate

Official fact: POSCO International merged with POSCO Energy in early 2023, integrating LNG terminals and power generation into the energy value chain, and became the first Korean general trading company to exceed KRW 1 trillion in operating profit. The post lists 2023 revenue of KRW 33.133 trillion and operating profit of KRW 1.1631 trillion.

Official fact: The post says the energy segment accounted for 55% of operating profit in 1H 2023, and cites a target of more than 7 million motor-core units annually by 2030 and over 10% global market share. It also references 63MW onshore wind in Shinan, 750MW-class floating offshore wind projects in Pohang and Ulsan, and 30,000 tons per year of natural graphite for 25 years from Tanzania.

Interpretation: This is a structure where energy creates cash flow and motor cores, wind, and graphite add growth options. The reason the source favors POSCO International as a long-term pick is the combination of steady earnings growth and a high dividend-payout profile.

4. Samsung C&T: high stability, different return profile

Official fact: Samsung C&T is framed as a diversified portfolio company with construction, trading, fashion, resorts, and holdings value. The post references 2024 operating profit of KRW 2.984 trillion, construction-segment profit of KRW 1.001 trillion, renewable partnerships, solar, BESS, and green-energy solutions.

Interpretation: Samsung C&T's advantages are cyclical defense and the possibility of closing the discount to intrinsic value. But looking only at the trading segment, profitability is low, and dividends are smaller than peers. The next two to three years of treasury-share cancellation are important.

5. Shareholder returns and investor fit

Investor-style matchingBased on the source's judgment
Dividend focusLX International
Growth + dividendPOSCO International
Stability + buybacksSamsung C&T
Key variablesResource cycle, energy profit, cancellation schedule
If choosing one, the source puts the most weight on POSCO International
  • LX International: High dividend yield is the attraction. If nickel and renewable power plants create stable cash flow, investors can see both dividends and growth.
  • POSCO International: The source views it as the most balanced investment case, citing possible 10-15% annual profit growth and a dividend policy around 50%.
  • Samsung C&T: Treasury-share cancellation and holdings value are positives. It suits long-term investors who prioritize stability and latent value upside.

In conclusion, the source puts relatively more weight on POSCO International as the company combining “stable growth stock + high dividend.” LX International's key task is earnings stabilization, while Samsung C&T's is direct shareholder-return intensity.

Sources