NEW YORK, Oct 21 (Reuters) - Palliser Capital is urging

LG Chem, a leading electric vehicle battery

supplier, to refresh its board and buy back shares, arguing

these and other changes could help its share price more than

double.

The South Korean chemical company currently trades at a 74%

discount to its net asset value as investors see it more as a

struggling petrochemicals company, while dismissing its strong

battery business, Palliser's founder and Chief Investment

Officer James Smith said at the 13D Monitor Active Passive

Investment Summit in New York.

Despite its strengths, LG Chem shares have lost 20% in the

last 12 months and have lagged their peers. "This thing is

crazy, crazy, crazy cheap," Smith said.

Smith blames a lack of trust in LG Chem's corporate

governance and a lack of alignment with shareholders, as well as

poor capital allocation for a steep gap between the company's

current $17 billion value and what it should be at $65 billion.

"LG Chem has a tremendous opportunity to unlock value by

closing its deep valuation discount," Smith said. "We ask the

board to formally evaluate the LG Chem Value Enhancement Plan

and lead by example in advancing President Lee's KOPSI 5,000

vision."

Investors have also criticized its 2020 decision to spin off

its battery business into a new company called LG Energy

Solutions, which some analysts said had a negative effect on the

Korean capital markets more broadly.

While Smith praised recent steps, including the sale of the

polarizer business two years ago and the sale of a non-core

water filter business this year, he said they are not enough.

The board needs to be refreshed with experts whose skills

apply to LG Chem's sectors in advanced materials, electric

vehicles and life sciences. Right now directors are academics

who lack business management expertise, as well as capital

allocation experience, he said.

Smith is also urging the company to buy back shares as well

as continue to monitor and maintain appropriate levels of net

debt.

Smith, who spent years working for Elliott Investment

Management and spent time in Asia, has previously made

investments in Japan including at real estate company Tokyo

Tatemono ( TYTMF ) and rail company Keisei Electric Railway ( KELRF )

.