LG Electronics President Jo Joo-wan Visits Automotive Subsidiary ZKW on His 'First Overseas Business Trip'

Jo Joo-wan, President of LG Electronics

[Asia Economy Reporter Jeong Hyunjin] Jo Joo-wan, the new CEO and President of LG Electronics, visited ZKW, an automotive lighting subsidiary located in Austria, on his first overseas business trip since taking office.

According to LG Electronics on the 21st, President Jo recently visited the ZKW headquarters in Austria along with Eun Seok-hyun, head of the VS Business Division. President Jo shared LG Electronics' automotive parts business and growth plans with ZKW executives and discussed cooperation.

President Jo's first overseas trip came as LG Electronics is rapidly expanding its automotive components (VS) business, which it views as a future growth engine, in line with the expansion of the electric vehicle and autonomous vehicle markets. The market expects LG Electronics' VS business to turn profitable next year.

In July, LG Electronics established a joint venture called 'LG Magna e-Powertrain' with Magna International, the world's third-largest automotive parts company based in Canada, completing the three pillars of its automotive components business: ZKW (lamps), the VS Business Division (focused on infotainment), and LG Magna e-Powertrain, aiming for full-scale growth.

LG Electronics acquired the Austrian automotive parts company ZKW in 2018, integrating the VS Business Division's automotive lamp business into ZKW and making it a key pillar of its automotive components business. As of early this year, ZKW's order backlog reached an all-time high, reportedly securing orders for the next three years. As of the end of last year, LG Electronics' total order backlog for its automotive components business was approximately 60 trillion won, with ZKW accounting for more than 20% of that.

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