LG Electronics to Achieve 100 Trillion KRW in Sales by 2030: "Creating New Value by Connecting Customer Experiences"

Jo Joo-wan Declares Future Vision and Major Business Portfolio Transformation
Secures 3 Key Growth Engines... Targets 100 Trillion KRW Revenue by 2030

LG Electronics has declared its vision to transform into a 'Smart Life Solution Company' that connects and expands customers' diverse experiences. It also expressed its ambition to become a 100 trillion KRW revenue company by 2030.

On the 12th, Jo Joo-wan, President of LG Electronics, held a press conference at LG Science Park in Magok, Seoul, introducing strategies to discover new opportunities for creating customer value amid changing market trends and business environments, and to translate these into results.

LG Electronics will focus on three main pillars to expand customer touchpoints and experiences: ▲ Innovation of Non-HW business models ▲ Growth in the B2B sector ▲ Securing new business engines. By 2030, it aims to raise the share of these three pillars to over 50% of sales and operating profit. For qualitative business growth, it plans to invest more than 50 trillion KRW in total by 2030, including over 25 trillion KRW in R&D, 17 trillion KRW in facility investments, and 7 trillion KRW in strategic investments.

First, the company will innovate from a product (HW)-centered business, where sales and profits occurred at the point of sale, to a cyclical model that continuously generates revenue by adding intangible (Non-HW) businesses such as content, services, subscriptions, and solutions. The TV business will transition its portfolio into a 'Media & Entertainment Platform Company' by combining differentiated product competitiveness like LG OLED and LG QNED with content, services, and advertising sectors. The home appliance business will expand into a 'Home Solution Business' that encompasses the entire home by adding services customers need in the home area to product competitiveness.

The automotive components business plans to more than double its sales by 2030, evolving into a global top 10 automotive components company with a scale of 20 trillion KRW. The residential and commercial HVAC (Heating, Ventilation, and Air Conditioning) business also aims to grow sales more than twofold by 2030 to become a global top-tier comprehensive air conditioning company. For built-in appliances, LG Electronics will actively target North America and Europe, which account for over 70% of the global market.

Additionally, the company plans to discover growth momentum in new businesses with high potential such as digital healthcare, electric vehicle charging, and the metaverse.

President Jo said, "Going forward, LG Electronics will not just remain the top home appliance brand that makes great products, but will continue bold challenges to transform and leap forward into a 'Smart Life Solution Company' that connects and expands customers' diverse spaces and experiences through innovation in business models and methods." He added, "We will reinvent even the ways we work and communicate to create a new LG Electronics."

He further emphasized financially, "By 2030, we will achieve the 'Triple 7' (annual growth rate and operating profit margin of 7% or more, and enterprise value (EV/EBITDA multiple) of 7 times or more), and raise our revenue scale from last year's approximately 65 trillion KRW (excluding LG Innotek) to 100 trillion KRW, establishing ourselves as a company properly recognized by the market and customers."

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