Jo Joo-wan's Innovation... LG Electronics Transforms into a Solution Company to Achieve '100 Trillion Won in Sales' (Comprehensive)

Declaration to Leap Beyond Home Appliances as a 'Smart Life Solution Company'
Pursuing Non-Hardware Business Models, B2B Growth, and New Business Drivers
Active Consideration of M&A
Work Style Innovation through 'Reinvent'

Jo Joo-wan, President of LG Electronics, is completely changing the business portfolio that has so far been centered on home appliances. The strategy is to break away from the framework of "Home Appliances are definitely LG" and transform into a "total solution company." He also expressed his ambition to grow into a "Triple 7" company achieving an average annual growth rate and operating profit margin of 7%, and a corporate value seven times higher, aiming to reach 100 trillion KRW in sales by 2030.

On the 12th, President Jo held a press briefing at LG Science Park in Magok, Seoul, where he announced this future vision and mid-to-long-term business strategy. In addition to President Jo, Lee Sam-su, CSO (Chief Strategy Officer), Ryu Jae-cheol, Head of H&A Business Division, Park Hyung-se, Head of HE Business Division, Eun Seok-hyun, Head of VS Business Division, and Jang Ik-hwan, Head of BS Business Division, attended.

Cho Ju-wan, President of LG Electronics, is announcing the future vision and business portfolio transformation on the 12th at LG Science Park in Magok, Seoul.
[Photo by LG Electronics]

LG Electronics identified three major growth engines: transitioning to platform-based service businesses, accelerating the B2B (business-to-business) business, and entering new businesses such as healthcare and electric vehicle charging.

Among LG Group affiliates, LG Electronics was the first to officially announce a structural transformation, reportedly driven largely by the will of Koo Kwang-mo, Chairman of LG Group. The content announced by LG Electronics on this day was also reported at the "First Half Strategy Report Meeting" held in May under Chairman Koo’s leadership. The strategy report meeting is a forum to review the mid-to-long-term strategic directions of major LG Group affiliates or business divisions and discuss future growth engines at the group level. At that time, Chairman Koo reportedly urged, "We must fundamentally enhance competitiveness through change." This declaration of LG Electronics’ vision is seen as Chairman Koo, who has been pursuing qualitative growth through "selection and concentration," externally demonstrating his commitment to innovation.

On the day, President Jo said, "A month ago, the holding company reached a consensus on LG Electronics’ mid-to-long-term strategy, and we have been continuously discussing this strategy with the holding company. I am proud of the nickname 'Home Appliances are definitely LG' given by our customers. However, we will not be satisfied with the present. We declare a new vision with the aspirations and will of all employees."

To achieve a major transformation of the business portfolio and qualitative growth, LG Electronics plans to invest more than 50 trillion KRW by 2030, including over 25 trillion KRW in research and development (R&D), more than 17 trillion KRW in facility investment, and 7 trillion KRW in strategic investments. President Jo stated, "Most of the investment funds will be concentrated on B2B, especially in electric vehicle charging, automotive components, and robotics. The core business H&A will focus on built-in products, and R&D investments will be more active to strengthen software."

LG Electronics is also actively considering establishing new businesses and capabilities through joint ventures (JV) or mergers and acquisitions (M&A). President Jo explained, "We are reviewing various options for M&A, but nothing has been finalized yet. We will not hesitate to consider inorganic methods." He also asked, "Please watch how LG Electronics makes quantum leaps."

President Jo emphasized the need for innovation in the way of working, mentioning "reinvent." He said, "I thought it would be difficult to become a sustainable company by continuing to work in the same way. We want to change the bureaucratic attitude of large corporations and even change areas that are considered unchangeable."

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