[CES 2024] LG Electronics to Invest 10 Trillion Won This Year... Jo Joo-wan Promises "M&A Results as Well"

LG Electronics Holds Press Conference During CES
CEO Jo Joo-wan Reveals Business Plans for This Year
"This Year Will Be the Year to Fully Step on the Accelerator"

LG Electronics will double its new investments this year compared to last year, expanding the total investment scale to 10 trillion won. This is to increase various investments to prepare future growth engines. Among them, 2 trillion won has been allocated for strategic investments. The goal is to achieve one or two mergers and acquisitions (M&A) successes during the external infusion process.

On the 10th (local time), LG Electronics held a press conference at the Conrad Hotel in Resort World, Las Vegas, USA. The event was attended by CEO Jo Joo-wan, Chief Strategy Officer (CSO) Lee Sam-su, Chief Technology Officer (CTO) Kim Byung-hoon, and heads of each business division, who concretized the business goals and vision for the new year.

On the 10th (local time), at a press conference held in Las Vegas, USA, LG Electronics CEO Jo Joo-wan is explaining this year's business plan. / Photo by LG Electronics

CEO Jo said, "Market and supply chain uncertainties are expected to continue for the time being, but inflection points such as Electrification, Servitization, and Digitalization are also becoming clear," adding, "It is a situation where opportunities and crises coexist."

He continued, "We will break through business limits and accelerate qualitative growth," and predicted, "If last year was a year to set the direction for new changes and leaps, this year will be a year to fully step on the accelerator." He also explained, "The 2030 future vision is not just a slogan but a promise to the market and customers, so we will definitely achieve it."

LG Electronics announced 'Breaking Limits' as the management policy keyword for this year. Last year, the company set three focus areas: B2B, Non-HW (non-hardware), and new business development, aiming to achieve Triple 7 (Compound Annual Growth Rate (CAGR) and operating profit margin of 7%, and enterprise value (EV/EBITDA multiple) of 7 times). This year, they will begin full-scale execution. The company plans to refine its portfolio and maximize business potential with full effort.

In this process, the company will invest a total of 10 trillion won this year, including new investments and research and development costs, to nurture future growth engines. The investments will mainly focus on high-growth and high-profit B2B businesses such as automotive components and heating, ventilation, and air conditioning (HVAC), as well as promising areas like electric vehicle charging and robotics. Especially this year, M&A and partnerships will be actively pursued to secure external growth engines.

CEO Jo said, "The M&A target areas are B2B and new businesses," adding, "We need to acquire capabilities that we do not yet have in those areas." He further explained, "Various methods are possible, such as acquiring the entire target company organization or a significant part of it to manage it," and said, "We expect to be able to announce one or two M&A achievements to the market this year."

LG Electronics is conducting M&A negotiations not only in new businesses such as artificial intelligence (AI) and mixed reality (MR) but also in promising industrial-related fields that can create synergy with existing businesses. CEO Jo is personally involved in driving these efforts. The company announced last July a goal to expand sales to 100 trillion won by 2030.

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