"Only Customers" - A Single-Minded Song by Hwang Hyun-sik, CEO of LG Uplus

LG Uplus's First CEO from Internal Ranks
Officially Appointed at the General Meeting on the 19th
"Securing True Fans" for Qualitative Growth
Improving Profitability of Wired and Wireless Communications
Finding a Beyond-Telecom Strategy Remains a Challenge

Since being appointed as CEO of LG Uplus last November, Hwang Hyun-sik, who has repeatedly emphasized the importance of customers, will be officially appointed at the regular shareholders' meeting on the 19th. The photo shows Hwang Hyun-sik delivering a New Year's message to employees through a video in January. Photo by Hwang Hyun-sik

[Asia Economy Reporter Minyoung Cha] "Our goal is solely the customer. If we secure true fans (devoted fans), there is no need to engage in reckless competition to attract new customers or prevent existing customers from leaving."

Since being appointed as CEO of LG Uplus last November, Hwang Hyun-sik, who has repeatedly emphasized the importance of customers, will be officially appointed at the regular shareholders' meeting on the 19th. The customer-centric mindset he developed while leading the Consumer Business Division serves as a core part of his management philosophy. Usually reserved in speech, CEO Hwang is focusing on building loyal customers rather than immediate performance indicators, in line with his New Year's message to "prioritize qualitative growth."

Telecom Profitability and New Business Are the First Challenges

There are many challenges due to the saturation of the mobile telecommunications market. As of the end of last year, the number of mobile telecommunications subscribers (subscription lines) in Korea was 71 million. This figure includes industrial lines, with pure mobile phone subscription lines numbering about 56 million. This means that most of the domestic population is already using mobile telecommunications. In this fiercely competitive red ocean where customers are constantly taken and lost, and with the additional challenge of building a domestic 5G network, the potential for profitability improvement is limited. Accordingly, LG Uplus is accelerating efforts to attract subscribers through partnerships with MVNOs (Mobile Virtual Network Operators). These difficulties in the core business are why CEO Hwang emphasizes the need for qualitative growth through securing true fans. Complex telecom jargon is simplified to match customer understanding, and annual customer appreciation events are held for existing mobile customers. The plan is to increase loyal customers rather than aggressively acquiring new ones.

A weakness is that the non-telecom strategies are less clear compared to competitors. SK Telecom focuses on commerce and mobility, while KT leads with a digital platform company (Digico) transformation strategy centered on media and content. CEO Hwang has established a new business promotion division and commissioned external market research to discover new business opportunities. Earlier this year, LG Uplus deployed a record number of about 600 employees to CES 2021, signaling the intention to grasp new service trends. Due to relatively weak proprietary content power, dependence on global OTT services like Netflix is high. The burden of contracts with Disney Plus is also significant. However, recently, efforts to foster proprietary content are being made through the international 5G alliance, the ‘XR Alliance.’

Spreading a Horizontal Culture... Huawei Issue Remains a Problem

Internally, CEO Hwang is leading efforts to create a horizontal meeting culture and a free organizational culture. Recently, LG Uplus confirmed renovation work to change the structure of the executive meeting room in its Yongsan headquarters in Seoul, with construction set to begin next month. Previously, the room had tiered seating with large tables for six people at different eye levels, but it will be completely changed to tables with attached chairs where individuals can sit freely, like a university lecture hall. This reflects a desire to move away from one-way meetings divided between presenters and a large audience.

How the company will respond to the use of Huawei telecommunications equipment, a fundamental cause of the stock’s undervaluation, is also attracting attention. Huawei greatly helped LG Uplus secure the LTE market lead but has faced backlash amid US-China conflicts, drawing negative views inside and outside the market. Anti-China sentiment among general consumers has also grown, preventing the stock price from escaping its undervaluation trend. The market expects that "with the upcoming standalone (SA) 5G commercialization, dependence on Huawei equipment will decrease."

CEO Hwang joined LG Telecom in 1999 as head of the Business Development Team, then served as head of the Gangnam Business Division and head of Sales Strategy. In 2010, he became head of LG’s Management Team, and in 2014, he led the Consumer Business Division at LG Uplus, responsible for mobile and individual customers. Last year, recognized for his leadership, he was appointed as LG Uplus’s first internally promoted CEO. The previous year, he was also the only executive promoted to president within the LG Group.

LG Uplus cited CEO Hwang’s business insight as the reason for his appointment as CEO. The company stated, "CEO Hwang has extensive experience overseeing LG Uplus’s mobile and smart home businesses, demonstrating excellent business insight and industry understanding," adding, "His practical experience as head of LG’s Management Team also gives him a high level of understanding of key affiliate businesses."

This content was produced with the assistance of AI translation services.