'Guwangmoho' LG Accelerates Future Preparation and Generational Change... Prioritizing 'Top Expert' CEOs

Kwon Young-soo's Resignation Leads to 'Two Co-CEOs System' Change
Replacement of Component Subsidiary CEOs... Emphasis on Experts Who Have Been 'Number One'
Gu Kwang-mo's 'Color Strengthening' Perspective... LG Says "Focus on Business Restructuring"

The 2024 personnel changes under Koo Kwang-mo, LG Group Chairman in his sixth year in office, can be summarized as preparation for the future and generational change. Vice Chairman Kwon Young-soo of LG Energy Solution retired, resulting in a two-person vice chairman system with Kwon Bong-seok, Vice Chairman of LG Corp., and Shin Hak-cheol, Vice Chairman of LG Chem. Instead, CEOs of component affiliates such as Display (President Jung Cheol-dong) and Innotek (Vice President Moon Hyuk-soo) were replaced, earning evaluations that LG achieved 'change within stability.' This is because there were no radical vice chairman appointments beyond market expectations (stability), but CEO replacements were made from engineer backgrounds (change).

LG stated regarding next year's executive appointments that they maintained the principles of 'performance-based' and 'preparation for the future.' Since the businesses involve large-scale facility investments and advanced technology in battery cells, electric vehicles, and home appliance platforms, the focus was on strengthening the group's long-term fundamentals. Talents with abundant practical experience and expertise by affiliate and business division were given key roles.

Koo Kwang-mo, Chairman of LG Group. [Photo by Yonhap News]

The new CEOs of battery cells (Energy Solution), display, and electric vehicle/mobile phone components (Innotek) share the commonality of having delivered 'definite achievements' such as being number one globally in their fields and securing core technologies. Kim Dong-myung, the new CEO of LG Energy Solution, was a key contributor who increased orders from major automaker clients and promoted joint ventures while serving as head of the automotive battery division.

Jung Cheol-dong, CEO of LG Display, is regarded as an 'Apple expert' and a B2B (business-to-business) specialist. Formerly LG Semiconductor's Chief Production Officer (CPO), he led innovations in organic light-emitting diode (OLED) core technology and production processes. The business community interpreted the change from 'financial expert' President Jung Ho-young to 'technology expert' President Jung Cheol-dong as LG Display's intention to pursue aggressive management by increasing Apple orders and securing technological leadership.

Moon Hyuk-soo, CEO of LG Innotek, is renowned as a camera module optics expert. Former head of LG Innotek's Optical Solutions Research Institute, he developed the world's first camera module applying new technology and grew the company into the world's number one optical solutions firm. After becoming head of the Optical Solutions Division in 2020, he led LG Innotek to become a global leader in smartphone camera modules.

LG stated, "To prepare long-term for achieving number one in business, we appointed business leaders with proven performance and professional capabilities in their respective industries to accelerate the drive for change."

Notably, the CEOs are young. Kim Dong-myung, CEO of LG Energy Solution, was born in 1969 (54 years old), and Moon Hyuk-soo, CEO of LG Innotek, was born in 1970 (53 years old). LG self-assessed that appointing these two as CEOs represented generational change by selecting prepared CEOs capable of successfully leading innovation and future preparation.

LG drew a line against the view that these individuals are 'Koo Kwang-mo's people.' LG explained, "The top executives appointed through this personnel reshuffle were selected as executives during the tenure of former Chairman Koo Bon-moo and have held key roles under the Koo Kwang-mo leadership, continuously nurtured as next-generation managers. We expect them to embody LG's customer value philosophy and drive the company's growth."

Jo Joo-wan, President and CEO of LG Electronics.
Photo by Yonhap News

The highly anticipated vice chairman group changed to a two-person system following Vice Chairman Kwon Young-soo's retirement. Although there was analysis suggesting a possible chain movement of new affiliate CEOs such as Jo Joo-wan, CEO of LG Electronics, and Jung Cheol-dong, CEO of LG Display, after Kwon Young-soo's retirement, this did not materialize. There was also speculation that if Jo Joo-wan were promoted to vice chairman, the vice chairman group could be more balanced, shifting from 'one holding company (Kwon Bong-seok) - two chemical affiliates (Kwon Young-soo and Shin Hak-cheol)' to 'one holding company (Kwon Bong-seok) - one chemical affiliate (Shin Hak-cheol) - one electronics affiliate (Jo Joo-wan).' There was no external recruitment like the 2018 hiring of Shin Hak-cheol, a former 3M executive.

The total number of promotions was 139, down from 160 last year. Among the 139 promoted, 99 were newly appointed executives. The average age of new executives was 49, the same as last year. However, 97% (96 people) of the new executives were born after the 1970s (aged 53 or younger). There were also five executives born in the 1980s (aged 43 or younger). The youngest executive was Son Nam-seo, born in 1982 (41 years old), Executive Director at LG Household & Health Care.

By promoting 31 research and development (R&D) talents, LG focused on securing technological leadership. The number of R&D executives within the group reached a record high of 203, up by seven from 196 last year. Notably, 24 R&D talents in new growth areas were promoted, including 16 in ABC (AI, Bio, Clean Tech) and 8 in software (SW). To supplement new external technologies and ideas, 15 external talents were recruited, including Hong Kwan-hee, Executive Director and Head of LG Uplus Cybersecurity Center, and Jin Yo-han, Executive Director and Head of LG CNS AI Center.

Additionally, nine female talents were promoted. Eight of the newly appointed executives were women. LG now has 61 female executives. Compared to early 2019 (29), this more than doubled in five years to 61.

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