Group 1 - Dongjin Semichem, a leading company in the semiconductor and LCD chemical materials sector in South Korea, announced a large-scale exit from the Chinese market by planning to sell its 10 subsidiaries in China [1][3] - The subsidiaries being sold include companies located in Beijing, Ordos, Sichuan, Wuhan, Qidong, Chengdu, Hefei, Chongqing, Huizhou, and Fuzhou, which primarily produce chemical materials used for cleaning glass substrates in the LCD exposure process [3] - The transaction is expected to be completed by May 31, 2026, with Dongjin Semichem anticipating to receive approximately 273.5 billion KRW (around 1.42 billion RMB) [3] Group 2 - The main reasons for this divestment include the increasing localization rate of the semiconductor and display materials industry in China and the shift of Chinese panel manufacturers from LCD to OLED, which is reducing the market share for traditional LCD chemical materials [3] - The sale will not be a simple asset transfer but will involve a complex structure through the establishment of a Special Purpose Vehicle (SPV), where Dongjin Semichem will transfer 70% of the shares to Chinese buyers while retaining 30% for continued cooperation or revenue rights [3][4] - In terms of financial recovery, Dongjin Semichem expects to gain 94 billion KRW from the sale, which includes 62.1 billion KRW from the sale price, 11.1 billion KRW from technical support fees, and 20.8 billion KRW from production technology localization support [4] Group 3 - Dongjin Semichem was established in 1973 and its main business includes electronic materials such as photoresists for semiconductor and TFT-LCD exposure processes, with major clients including Samsung Electronics, SK Hynix, and LG Display [4] - In 2004, Dongjin Semichem invested 2.9 billion KRW to establish Beijing Dongjin Semichem Technology, marking its entry into the Chinese market to supply products for JD Group's Beijing factory [5] - The latest financial report indicates that Dongjin Semichem achieved a cumulative sales revenue of 884.9 billion KRW and a quarterly net profit of 64.8 billion KRW in the third quarter of this year [5]