[People人] Gu Bon-jun, LX Group Chairman, the 'Quiet Bulldozer' Restarted After 2 Years

[Asia Economy Reporter Hwang Yoon-joo] ‘Quiet Bulldozer, Fierce Competitor, Pizza CEO.’

The epithets surrounding Koo Bon-joon, Chairman of LX Group, reflect his management style. He is a leader with strong driving force who values communication. He is making his presence felt again after two years. This comes as he embarks on a new start under the name LX Group this year, leaving behind LG Group, whose succession structure became clear after the passing of Chairman Koo Bon-moo.

Koo Bon-joon, the Savior of LG Electronics

When describing ‘businessman’ Koo Bon-joon, his career at LG Group cannot be overlooked. After becoming a director at LG Electronics in 1989, he served as CEO of key affiliates such as LG Semiconductors, LG Philips LCD (now LG Display), and LG Corporation, growing them into global companies. During this process, he earned the nickname ‘Fierce Competitor.’

During the Asian financial crisis, when government-led corporate restructuring made it difficult to maintain the semiconductor business, Koo played a major role in laying the foundation for the display business. He separated the TFT-LCD business, which LG Electronics and LG Semiconductors had each operated, to establish LG LCD and attracted $1.6 billion in investment from Philips. The LCD cluster is like a masterpiece showcasing Koo Bon-joon’s ‘Quiet Bulldozer’ leadership. He invested 5.3 trillion won to build an LCD panel factory in Paju, just 10 km from the Demilitarized Zone, and saw results within two years. The LCD business’s sales, which were only 1.5 billion won in its first year (1995), surpassed 8 trillion won in less than ten years, writing a high-speed growth drama.

Koo also played a major role in the leap forward of LG Corporation. After moving from LG Philips LCD to LG Corporation in 2007, he focused on resource development and investment in key industries. During his tenure, operating profit more than tripled. He turned around the bankrupt Philippine mining business to profitability in just one year and six months. This was a moment when the nickname ‘Fierce Competitor’ was once again echoed in the business world.

In 2010, Koo was called upon as a savior for LG Electronics, which was in crisis due to the emergence of Apple. He sought internal innovation by increasing investment in research and development (R&D) and marketing and introducing a performance-based culture. However, it is regrettable that these efforts did not overcome the sluggish smartphone business at LG Electronics.

In February 2016, Koo stepped down as CEO of LG Electronics and moved to become a registered director at LG Chem. It is known that he had a significant influence in laying the foundation for LG Chem’s materials and components business, including electric vehicle batteries.

New Start as LX Group Engaged in Fabless, Chemical Materials, Forwarding, and Building Materials Businesses

He stepped down from LG Group management in May 2018 following the passing of Chairman Koo Bon-moo. The LG family strictly adheres to the ‘primogeniture succession’ principle. LS, LIG, and LF all have roots in LG Group. Following tradition, Chairman Koo Bon-joon also became independent as LX Group.

At the LX Group launch ceremony in May this year, Chairman Koo emphasized, “Within us lies the No. 1 DNA and a pioneering spirit on the global stage,” adding, “Let us not fear change and root the No. 1 DNA throughout LX.”

LX Holdings oversees five affiliates: LX International, LX Hausys, LX Semicon, LX Pantos, and LXMMA. Leading with its core affiliate LX International, the group is expanding its footprint in new businesses. LX International’s board added eco-friendly waste, healthcare, telecommunications, lodging, and e-commerce to its new business purposes. LX International’s subsidiary LX Pantos has also stepped into the e-commerce market.

LX Group plans to establish independent business models in future industries such as core minerals for secondary batteries like nickel, renewable energy, carbon emissions trading, healthcare, and digital sectors. Industry insiders expect that the group’s operating profit could exceed 1 trillion won as early as next year, driven by Chairman Koo’s aggressive management moves.

Active Communicator with a ‘Boss’ Style

If Chairman Koo’s style were to be summed up in one word, the answer would be ‘Boss.’ He is known for speaking frankly and directly without hesitation. A famous anecdote dates back to November 2002 on a flight. On a plane from Amsterdam to Korea, he happened to meet reporters and, out of friendliness, suggested, “Let’s have a glass of wine.” He then moved to the business class cabin and spent six hours discussing LCD strategies and competitor analysis with the reporters.

Sometimes his quirky and bold personality makes employees sweat, but he is also an owner who cares deeply about internal communication. As a wine enthusiast, he often gifted wine sets to executives with the message to ‘communicate while sharing a drink.’ Since April 2011, Chairman Koo has also been known as the CEO who sends ‘pizza’ gifts. Over five years, more than 50,000 LG Electronics employees at over 80 locations worldwide received pizzas sent by him. This story became famous when President Moon Jae-in mentioned it during a meeting with major corporate heads in 2017.

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