Koo Kwangmo: "Chinese Competitors Invest Three to Four Times More Capital and Manpower Than Us"

Reference to Employee Detention Incident in the US
Calls for Crisis Response and Organizational Reinforcement

Koo Kwangmo, Chairman of LG Corporation, addressed the recent detention of employees in Georgia, United States, as well as the intensifying competition from Chinese companies, and urged the management team to strengthen their crisis response.

Koo Kwangmo, Chairman of LG Corporation. Provided by LG Corporation

According to LG Corporation on September 25, Chairman Koo pointed out during a meeting of company presidents held the previous day at the LG Academy in Icheon, Gyeonggi Province, that “Chinese competitors are investing three to four times more capital and manpower than we are.” He added, “We have been discussing three key areas: selection and concentration of business, winning research and development (R&D), and structural improvement of profitability for sustainable competitive advantage and profit enhancement, but there is still much work to be done.”

In fact, LG Electronics has faced aggressive low-cost competition from Chinese companies in the home appliance sector, while LG Display has seen profitability decline due to expanded panel supply. In the battery and telecommunications sectors, competition with CATL and Huawei has increased investment burdens. Chairman Koo’s remarks are seen as targeting this mounting pressure from China. He emphasized that as global competitive pressures intensify, it is crucial to both strengthen internal capabilities and pay particular attention to the protection of employees. Referring to the recent incident in which employees of LG Energy Solution and its partner companies were detained in Georgia, he stated, “Since people spend even more time at work than at home, top management must carefully ensure the safety of all team members.” Since the incident, Chairman Koo has been in real-time communication with key executives, repeatedly calling for a close and safety-first response to protect employees.

The meeting was attended by more than 40 top executives from major affiliates, including LG Electronics, LG Display, LG Chem, LG Energy Solution, and LG Uplus, as well as Chief Digital Officers (CDOs) responsible for each company’s artificial intelligence transformation (AX) strategy. The management team shared a sense of crisis regarding the overall business environment, including intensifying competition with Chinese and other global companies and growing geopolitical uncertainties.

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