Koo Kwang-mo's 'New LG', Focus on Talent Acquisition: "We Recruit and Retain"

Koo Kwang-mo, Chairman of LG Group (third from the left in the front row), is attending the 'LG Tech Conference' held in 2019 at LG Science Park, where over 350 domestic R&D talents in master's and doctoral science and engineering programs participated, and is taking a commemorative photo with the participants.
[Photo by LG Group]

[Asia Economy Reporter Kim Heung-soon] LG Electronics recently launched a brand page for its VS Business Division, which is in charge of the automotive components business, on the global professional social media platform 'LinkedIn.' This move aims to showcase the advanced technologies of LG's automotive components business and facilitate communication with key clients and investors. It also serves the purpose of recruiting outstanding talent in the field. The attempt to strengthen future businesses such as automotive components, artificial intelligence (AI), and robotics, which LG Group Chairman Koo Kwang-mo has emphasized under the vision of 'New LG,' is drawing attention from related industries.

According to LG Electronics on the 21st, the newly launched VS Business Division brand page on LinkedIn also introduced recruitment for the electric vehicle powertrain sector. LinkedIn is the world's largest global business networking site, used by over 400 million people worldwide. An LG Electronics official explained, "The automotive components sector is B2B (business-to-business) oriented, and those interested in this business share the latest industry information through LinkedIn," adding, "We considered that recruitment of excellent global talent also takes place here."

LG Electronics' VS Business Division aims to return to profitability this year. To strengthen its automotive components business, it is preparing for the official launch of the electric vehicle powertrain joint venture 'LG Magna e-Powertrain' in July, in partnership with Magna International, the world's third-largest automotive parts supplier based in Canada. On the 15th, LG also launched 'Aluto,' a joint venture with Luxoft, a global software company headquartered in Switzerland, focusing on vehicle infotainment platform business. Earlier, in 2018, LG acquired ZKW, an Austrian vehicle headlamp manufacturer, laying the foundation for its automotive components business. These companies also plan to share recruitment and related news through LinkedIn. Domestically, LG Group's recruitment website actively hires experienced management strategy personnel to work in the VS Business Division.

Accelerating Digital Transformation... Focus on Strengthening Future Businesses and Attracting Top Talent

Since Chairman Koo took office in 2018, LG has accelerated its digital transformation (DX) efforts, focusing not only on automotive components but also on future growth engines such as AI and robotics. Securing talent in these fields is the first step. Aluto appointed Adam Ulwey, founder of the electric vehicle charging platform startup 'PlugSurfing,' as CEO, and ZKW appointed Udo Honpek, a technical expert in automotive parts, as CTO, bringing in proven external talent. Last year, LG incorporated the Robot Business Center, established after Chairman Koo's inauguration, into the BS (Business Solutions) division, one of LG Electronics' five core businesses (H&A, HE, MC, VS, BS), to strengthen it.

In the AI field, LG launched the 'LG AI Research Institute' earlier this year, involving 16 affiliates including LG Electronics, LG Display, and LG Chem. Chairman Koo announced plans to invest over 200 billion KRW in global talent acquisition and AI R&D over three years and to nurture 1,000 AI experts. He encouraged the researchers at the launch, saying, "Gather the best AI talent and partners and boldly tackle the world's toughest challenges."

Additionally, to recruit outstanding R&D personnel who will lead the Fourth Industrial Revolution in AI, automotive parts, and batteries, LG has held the 'LG Tech Conference' annually since 2012. This event targets domestic master's and doctoral students in science and engineering fields, where affiliate CEOs explain LG's vision and talent development plans. Until 2019, before the COVID-19 pandemic, the conference was also held for Korean graduate students studying in the United States. An LG official stated, "To stabilize core businesses and secure growth engines, recruiting outstanding talent in related fields is paramount," adding, "Therefore, intense global competition to secure proven talent is underway behind the scenes."

LG Electronics VS Business Division LinkedIn Brand Page Capture

Dedicated to 'Retaining' Internal Members
LG Electronics' Wage Increase Rate Hits Highest in 11 Years

LG Electronics is also putting effort into boosting the morale of its internal members. On the 18th, LG Electronics reached an agreement with the LG Electronics Labor Union to raise employee wages by 9% this year and enhance welfare benefits. The 9% wage increase is the highest since 2011. Over the past three years since 2018, the wage increase rate was set around 4% annually, but this year it more than doubled.

Starting salaries by rank are 46 million KRW for entry-level employees, 55 million KRW for senior employees, and 71 million KRW for managers, each rising by 3 million KRW, 5 million KRW, and 6 million KRW respectively compared to before. With welfare improvements, employees with children entering elementary, middle, or high school will receive a laptop once per child starting this year.

Not only LG Electronics but other LG affiliates are also significantly raising employee wages this year compared to previous years. For example, LG Display set the average wage increase rate for technical staff at 6.5-7% this year, up from 1.9% last year. This trend is interpreted as a measure to soothe employee dissatisfaction over performance bonuses recently raised in the business community and to prevent talent outflow. LG has also faced similar challenges.

An industry insider said, "The remarkable salaries offered by domestic and international IT companies have become a hot topic, and for young employees, salary is an important factor when considering job changes," adding, "LG's significant wage increase compared to previous years can be seen as an attempt to quickly resolve such controversies and stabilize the organization."

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