'Home Appliances → Semiconductors & Electric Vehicles'... Samsung & LG Blueprint Revealed

Became No.1 Product Company as Planned in the 90s
Struggled to Discover New Businesses like Solar Power in the 2000s
System Semiconductors and Electric Vehicles 'Battle' in the 2030s

Samsung Electronics and LG Electronics have presented their '10-year visions' multiple times since the 1990s. With LG Electronics unveiling its 2030 vision on the 12th, interest is growing in whether the two companies achieved their past visions and the feasibility of their current visions.

Samsung Electronics Chairman Lee Jae-yong speaking at the 'System Semiconductor Vision 2030 Declaration Ceremony' on April 30, 2019. [Photo by Samsung Electronics]

Both companies achieved the plans they announced in the 1990s. In July 1993, the late Chairman Lee Kun-hee of Samsung Electronics declared the 'New Management Declaration.' He aimed to secure talent through quality-focused management, open personnel policies, and expanding female workforce. In 1993, Samsung created the first public recruitment process for female college graduates in Korea. For a long time, they adhered to principles of hiring 35% of new employees from regional universities, about 30% women, and 5% from marginalized groups. Since then, Samsung became the world's number one seller of TVs and smartphones. LG Electronics’ late Chairman Koo Bon-moo announced the 'Leap 2005' vision in July 1996. They pursued a 'Top 3 Strategy' focusing on businesses that could rank within the top three globally, such as monitors, cathode ray tubes, CD-ROM drives, and air conditioners. The strategy paid off, with LG Air Conditioner's Whisen becoming the world’s number one in 2000.

Both companies experienced some failures in achieving the plans announced in the 2010s. Samsung Electronics failed to meet the goals of 'Vision 2020' announced in October 2009 on its 40th anniversary. They aimed to reach annual sales of $400 billion (approximately 473 trillion KRW at the time), become the world’s number one IT company, and rank among the top 10 companies globally by 2020, but did not succeed. The highest annual sales record was 302 trillion KRW last year. They also failed to develop LED, solar cells, automotive batteries, medical devices, and biopharmaceuticals into Samsung Group’s representative businesses by 2020, eventually withdrawing from the solar cell and LED businesses. LG Electronics’ late Chairman Koo Bon-moo announced 'Green 2020' in 2010, aiming to revitalize the solar cell business. They invested 46 billion KRW in 2007 to launch LG Solar Energy and began mass-producing 120 MW-class solar cells in 2010. However, they exited the business in 2021 due to competition with China.

Cho Ju-wan, CEO of LG Electronics, presenting the vision of a 'Mart Life Solution Company' on the 12th.
[Photo by LG Electronics]

For the 2030s, Samsung Electronics is expected to achieve groundbreaking results in semiconductors, and LG Electronics in electric vehicles. Samsung Electronics announced the 'System Semiconductor Vision 2030' in April 2019, pledging to invest 133 trillion KRW to become the world’s number one company in foundry (semiconductor contract manufacturing) and other areas. Four years later, they have risen to second place. Their challenge is to increase yield rates and secure orders from major clients such as Apple, Nvidia, and Qualcomm in the U.S. Former Deloitte Consulting Vice Chairman Kim Kyung-joon said, "It will be difficult for Samsung Electronics to sustain itself for decades solely on its memory semiconductor business, such as DRAM, which is currently number one globally. They need to achieve results in foundry."

LG Electronics presented a vision as a 'Smart Life Solution Company' aiming to achieve 100 trillion KRW in sales by 2030. They plan not only to increase product sales but also to use popular home appliances as platforms to provide content and subscription services. They aim to become a top 10 global company in automotive electronic components and actively explore new businesses such as electric vehicle charging. Vice Chairman Kim said, "From LG Electronics’ standpoint, which is losing price competitiveness to China, it was necessary to reduce the proportion of product (device) performance. Pioneering new platform markets like 'UP (UP) Appliances,' which enhance quality through the ThinQ app even after purchase, is positive."

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