Kim Dong-myeong, President of LG Energy Solution, "Truck Siwi Demand, Realistically Difficult"

Town Hall Meeting on the 20th

Kim Dong-myung, President of LG Energy Solution, stated that the ‘Profit Sharing system (a profit-sharing scheme that sets a certain scale of profit as the source of performance bonuses)’ demanded by some employees through anonymous truck protests is "practically difficult." He explained that "due to large-scale investments, surplus cash flow will not be generated until 2026, and dividends to shareholders cannot be paid, making the introduction of such a system difficult."

President Kim held a town hall meeting for all employees that morning and said, "We are discussing improvement plans for performance bonuses at a reasonable level that all parties including employees, shareholders, and investors can accept, and we are reviewing ways to increase transparency."

The town hall was attended by President Kim, the Chief Human Resources Officer (CHO), Chief Strategy Officer (CSO), and heads of each business division, among other key executives. This was the second town hall meeting held after the one last month, which was organized to communicate with employees on topics such as the 2023 management performance bonuses, treatment improvements, and organizational culture.

Kim Dong-myeong, President of LG Energy Solution [Photo by LG Energy Solution]

President Kim said, "While preparing for the town hall, I gave a lot of thought to the future company we will create with our employees," adding, "I hope this gathering becomes a place where the company, which is facing more difficult circumstances than ever, can unite its strength and where management and employees can trust and cooperate with each other."

He emphasized, "External growth forecasts for the electric vehicle market are declining, and some companies are expected to experience negative growth, making the short-term situation very challenging."

He continued, "To overcome this, we must go beyond minimizing unnecessary costs and efficient workforce management by boldly eliminating inefficiencies," and said, "We will enhance productivity and efficiency intensively through rapid decision-making and actions at a completely different level from the existing methods."

He also stated, "I hope management and employees will trust and cooperate with each other to unite their strength toward a better future."

LG Energy Solution has set the average wage increase rate for 2024 at 6%.

A company official said regarding this, "We comprehensively considered various internal and external management conditions, the basic salary levels of competitors, and expected increase rates," adding, "We will continue to improve compensation and treatment and maintain wage increase policies to ensure that the basic salary level remains competitive."

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