LG Electronics Announces Organizational Restructuring for Future Growth
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By News Reporter
LG NOVA InnoFest Lights the Halo of Innovation on Bold Ideas and Businesses With
Open Conference Program, Issues a Call for Startups for the Pitch Competition
SAN FRANCISCO, July 16, 2024 — LG Electronics (LG) has opened registration for the fourth annual LG NOVA InnoFest, taking place on September 25-26, at the Palace of Fine Arts in San Francisco. Hosted by LG NOVA, LG Electronics’ North America Innovation Center, the two-day event will bring together a cross-section of business leaders, innovators and investors across various industries to collaborate on solutions for a better future. This year’s event theme, “Lighting the Halo of Innovation” was designated to inspire attendees to focus on creating change and impact through co-creation and collaboration on bold ideas and businesses.
The event brings back its annual Startup Pitch Competition, where 10 selected startups will compete to win cash prizes, an audience with executive judges and recognition on stage. In this competition, LG is looking for bold startups with great potential, working on innovative ideas that can lead to transformative change in their markets.
LG Electronics’ sister company LG Chem is co-sponsoring this year’s startup pitch competition, adding a new Life Sciences category alongside CleanTech, HealthTech, AI, Smart Life and Open Innovation. The US Business Development team is seeking next-generation technologies that align with LG Chem’s sustainability mission and will sponsor a new “Innovation for Impact Award.”
For more details on each category, visit
link hidden, please login to view. Interested startups can submit their companies for consideration at . In addition to the monetary prizes and on-stage recognition, selected startups may have the opportunity to collaborate with LG to build businesses, participate in LG NOVA-sponsored marketing activities or qualify for investments from LG and its network. According to a 2023 from Boston Consulting Group, 79 percent of companies ranked innovation among their top three priorities and more than 40 percent expect to increase spending significantly. Today, innovation is being driven by a collaborative ecosystem. This interconnected approach, involving startups, corporations, academia and venture capitalists can result in groundbreaking solutions. Innofest seeks to illustrate the capabilities of this model, bringing together startups, investors and members of the innovation community to exchange ideas, encourage, support and discuss how they can all work together to spur “innovation for a better life.”
“Today the responsibility for innovation no longer sits solely with individual companies; collaboration is critical,” said Dr. Sokwoo Rhee, corporate executive vice president for Innovation at LG Electronics and head of LG NOVA. “Through InnoFest, we are bringing together the entire innovation ecosystem, from corporations to growing startups, to discuss creative and cutting-edge ideas that have the potential to shape our future.”
Last year’s gathering brought 90 industry-leading speakers together for 28 sessions focused on topics such as women in tech; balancing growth, profitability and impact; as well as diversity in tech. The event enabled people to join in the discussions on solutions to challenges in these key areas within the innovation community.
This year, according to Rhee, “InnoFest is boldly reimagining its program to be more interactive and engaging through a non-traditional conference format, emphasizing meaningful connections and inspiring conversations.” Attendees can look forward to influential speakers and keynotes, select curated panels and more dynamic discussion-based sessions.
“At LG, we believe in the power of optimism and innovation to change the world,” said Rhee, who invited startups to join LG at InnoFest 2024, “as we strive to create a brighter future together.”
Registration for InnoFest is now open at . Interested in speaking or moderating at the event? Learn more at .
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By News Reporter
Hanok, traditional Korean houses, are renowned for their aesthetic beauty construction and harmonious integration with nature. Inspired by this distinctive architectural form – prized for its energy efficiency, natural ventilation and lighting – LG Spain has constructed an AI-powered home named ‘Another Hanok.’ This innovative abode showcases LG’s latest technological and design advancements and highlights some of the ecologically-focused projects undertaken as part of LG Spain’s ‘Smart Green’ movement.
During the Another Hanok opening ceremony, LG reaffirmed its commitment to supporting the global climate response through its ongoing ESG initiatives and sustainable product solutions. The event was attended by 80 guests, including the president of LG Spain, local and Korean government officials and representatives from various partner companies. Since establishing the Smart Green movement in 2017, LG Spain has developed product solutions aimed at reducing environmental harm while encouraging and fostering community engagement.
Efficient Innovations for Sustainable Dwellings
Self-sufficient, connected and sustainably powered, Another Hanok embraces and embodies LG’s Smart Green philosophy. The house produces, stores, saves and shares clean energy, achieving 100 percent energy independence* through the use of LG’s state-of-the-art technologies as a way to reduce its environmental impact.
Leading up to the entrance of Another Hanok is a beautifully designed pathway that inspires feelings of peace and tranquility while reminding visitors of the pressing environmental issues facing our planet. As visitors approach the house, they encounter a variety of interactive displays and installations that spotlight the challenges of reducing carbon emissions and the urgent need for companies and consumers to adopt responsible practices.
Inside, visitors can explore several spaces, each focused on different aspects of sustainable living. From energy-efficient appliances to advanced HVAC systems, Another Hanok demonstrates how LG’s cutting-edge technologies and solutions can help create a net-zero-energy home. The seamless installation of the LG Therma V R290 Monobloc heat pump contributes to the house’s efficient use of power, while ensuring the reliable heating and cooling for visitor comfort. Conveniently, the solution’s energy consumption can be monitored through the ThinQ Energy Service. Additionally, surplus energy produced by the solar panels installed on the roof of Another Hanok is stored in LG’s energy storage system.
Expanding the Smart Green Movement
Launched in 2017, LG Spain’s Smart Green movement is an initiative that continues to help regenerate local environments and ecosystems. The movement’s goals include planting 48 million trees (Smart Green Trees), repopulating 48 million Iberian bees to ensure the pollination of countless endemic plant species (Smart Green Bees), and reviving the health of the Mediterranean Sea (Smart Green Seas).
The ‘Another Life’ Experience
Another Hanok is a part of LG’s ‘Another Life’ series, a collection of offline experience spaces that provide customers with unique opportunities to interact with LG’s lifestyle-enhancing products. Each of these spaces offers a welcoming atmosphere along with compelling displays and exhibits that promote sustainability and responsible technological innovation. Beginning in South Korea in 2022, the series has since expanded internationally with the addition of sites such as ‘Another Saigon’ in Vietnam.
LG views Another Hanok as a new, more-engaging kind of B2B showroom, where its European B2B clients can see first-hand the company’s strong commitment to achieving carbon neutrality. In the spirit of its Life’s Good philosophy, LG will continue to innovate and inspire, leveraging its technology leadership to help usher in a new era of sustainability.
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* Average yearly photovoltaic (PV) power generation at Another Hanok is 22,030 kWh while average monthly power consumption is 16,870kWh. Actual power generation and power usage may vary.
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By News Reporter
In business, meaningful growth can’t happen without innovation. It’s essential if your organization is to evolve and thrive, and if you’re serious about adding value to people’s daily lives.
With a thirst to drive innovation, and a wealth of knowledge in the area of IoT, I set out to establish and grow my own startup. I’m happy to say I succeeded in this endeavor. However, with the business model being rather narrow – a continuous cycle of making products and then selling them – there were limitations to what I could do.
After making the decision to sell my company, I went on to serve as the Presidential Innovation Fellow for Cyber-Physical Systems (CPS), a program run by the White House Office of Science and Technology Policy. It was a valuable and enlightening experience. There, I had the chance to work with leading tech companies to further develop and execute plans for industrial IoT and global smart cities. During my seven years in the U.S. federal government, I realized that there are limits to what governments can do with regard to building smart ecosystems. In the end, private companies are the ones bringing the ideas and concepts of smart solutions and businesses to fruition.
This was when I was first approached by LG Electronics. The company wanted to create a new organization dedicated to the discovery of future businesses. LG offered me this amazing opportunity to head up a team they were in the process of putting together.
I thought deeply about the prospect of joining LG. While the company is universally recognized as a strong player in the consumer electronics field, looking in from the outside, it seemed to lack what some might call, a certain ‘disruptive innovation.’ However, I was intrigued by its determination and desire to uncover future businesses and was confident that the company possessed the agility necessary to change and ‘disrupt.’
Personally, I believe that if there are ten great ideas on the table, seven or eight of them will fail to develop into successful businesses. While many people view this way of thinking about business creation as just plain crazy, LG CEO William Cho is, thankfully, not among them.
At LG NOVA, an initiative I am grateful to lead, our mission is to establish a community for nurturing, growing and creating new businesses in new market areas for LG. Early in the LG NOVA journey, we realized that entering new businesses – or new business areas – is difficult if you’re relying solely on your internal capabilities.
If LG wants to create new home appliances, it is in a good position to do this internally because it is already a global leader in consumer electronics, with all the necessary expertise and experience at its disposal. LG NOVA’s mandate is to explore entirely new and different concepts, not currently in LG’s wheelhouse. Although there are thousands of engineers and experts working in LG’s R&D centers, their expertise is in products and areas of business that LG is already in. This is why the LG executive team resolved to look outside of LG.
Our goal is to explore new business avenues that would, ultimately, help contribute to the advancement of LG Electronics. Startups, by the nature of their business model and ability to be at the ground-level of market needs, are leading the forefront of innovation. However, startups will not partner with just any firm that approaches them. This is why we needed to show that LG, as a company, has the commitment and capability to go far beyond home appliances and TVs. This is where LG NOVA comes in.
To establish ourselves in the market, we came up with the idea of hosting a grand challenge. In September 2021, we announced the launch of
link hidden, please login to view, an annual, global competition for startups where we could identify innovative technologies and business ideas for a better tomorrow. The participating startups were tasked with developing and presenting technology-based solutions for improving daily life, our communities and the planet. The tech areas we asked them to focus on included clean tech, healthcare and future tech/AI. To give you an idea of how it works, imagine there is a startup that creates sensors for use in healthcare devices. They might pitch a scenario or concept where their sensors are deployed in TVs to enable innovative new services. Our own business experts, or entrepreneurs in residence (EIRs), would then work with the startup to assess the feasibility of their idea. In many cases, EIRs would work closely with the startup to develop a relevant, but entirely different business idea that could be exciting to both parties. If the idea was deemed to be viable, and in alignment with LG NOVA’s goals and values, a partnership agreement might result and LG NOVA would launch a new business based on the collaboration. This is how a small, fledgling company can set its unique concept on the fast track to becoming a commercialized product.
Through this process, and by combining our capacity with the startup’s capacity, we can create a joint business where LG has as much ‘skin in the game’ as the startup. And at every step along the way, LG NOVA will be right there with them, from meeting with investors to introducing and marketing the ‘final product’ to customers. Through LG NOVA, we can create new products and services that can make a positive difference – and do it at a much larger scale than a startup could manage, if it were to go it alone.
I am proud to be a part of LG and to help guide LG NOVA into exciting new territories where boundless innovation awaits discovery. And I can say, without exaggeration, that I truly love this role. Ultimately, I’m striving for Innovation for Impact – which also happens to be the motto and the philosophy of LG NOVA. While there are many, many ways to make a profit, we have committed ourselves to achieving profitability in a meaningful way, and to leaving a lasting, positive impact on the world.
By Dr. Sokwoo Rhee, executive vice president of Innovation for LG Electronics, head of LG NOVA
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By News Reporter
With an unwavering policy of open innovation with startups around the world, LG has been fostering businesses outside its own to better prepare for the future. These big-picture efforts are centered on LG NOVA, the company’s North American Innovation Center in California’s Silicon Valley – known worldwide as the hub of startups.
Established in 2021, LG NOVA aspires to form a collaborative ecosystem that accelerates the growth of new ideas by working closely with startups on new businesses that can enhance LG’s future readiness.
LG NOVA aligns with LG CEO William Cho’s growth strategy of 3B – Build, Buy and Borrow – to strengthen the company’s future growth engine by embracing talent and technology through exchanges with various innovative companies.
Let’s look at how this essential innovation center works with its partners to bring about groundbreaking advancements. Furthermore, we’ll explore how it is establishing a community dedicated to creating and nuturing businesses that contribute positively to the future of our world.
Discovering Global Startups to Break New Ground in Healthcare
LG NOVA’s “Mission for the Future” program, now in its fourth year, is designed to discover and nurture innovative global startups seeking to improve people’s quality of life in a greener, smarter and more-connected future.
In its first three years, LG NOVA received over 4,000 submissions from innovative global startups, with more than 100 companies selected to explore joint business opportunities with LG.
This year is an especially important one, as this month, LG NOVA unveiled its first new venture, “Primefocus Health,” with Darren Sabo, previously head of commercialization of new health ventures at LG NOVA, at the helm as the CEO. Sabo has a wealth of experience in new business development, making him the perfect candidate to take this digital health venture forward.
(From left to right) Darren Sabo, CEO of Primefocus Health, and Sokwoo Rhee, Head of LG NOVA and SVP of Innovation for LG Electronics
Primefocus Health is committed to easing the journey from hospital to home for patients. It leverages cutting-edge technologies and novel healthcare treatments through a platform designed to offer patients access to a personalized care plan. This plan, curated by their healthcare provider, aids in the recovery from chronic diseases like diabetes and high blood pressure.
This healthcare platform also offers providers access to patient data and information, enabling them to assist, guide, communicate and intervene as necessary during the patient’s home recovery. The platform aims to facilitate remote patient monitoring, providing real-time biometric information that can be integrated into the provider’s electronic health record systems.
LG NOVA is collaborating with more healthcare startups through the Mission for the Future program, including
link hidden, please login to view, which integrates immersive VR/AR technology to provide comprehensive therapeutic care for remote medical treatment, and , a sensor-based technology platform that utilizes the cameras in personal devices to virtually capture health readings to enhance diagnosis and treatment effectiveness.
Another example that demonstrates LG NOVA’s focus on digital health is , a virtual care platform to treat polychronic mental and physical illness that was selected during the 2021 Mission for the Future challenge. This solution leverages AI to harness clinical, genetic, gut microbiome, food and behavioral signals to target the root cause of illness.
LG NOVA plans to continuously launch new businesses through ventures in LG’s future growth areas including digital health, clean tech and AI.
Promoting Symbiotic Growth in West Virginia
This year, LG NOVA is joining hands with West Virginia to revitalize the local economy by fostering future businesses while bringing instances of win-win cooperations to this U.S. state and the dynamic Appalachian region.
The announcement introduced the NOVA West Virginia Investment Fund, which aims to drive USD 700 million into the region over five years through investment.
The decision to invest in West Virginia, which is over 2,000 miles away from LG NOVA in Silicon Valley, stems from the REINVENT LG initiative. Under the leadership of CEO Cho, LG has been carrying out various initiatives to redefine everything from its business structure and brand to the way it works. What makes West Virginia the perfect partner is its similar desire to reinvent itself to revitalize the local economy.
Primefocus Health also plans to work closely in the Mountain State.
Increasing Funds to Foster Potential Startups
LG NOVA is also significantly expanding the scale of its investment and speeding up its investments for the future. In 2023, it signed an agreement with Clearbrook, a global venture investment company, to expand the global startup development fund – NOVA Prime Fund.
Through collaborating with external experts to identify the latest technology trends, discover more innovative companies and offer comprehensive support, the company hopes to accelerate the growth of startups and discover opportunities for collaborations across various business areas.
A Talent Acquisition Outpost that Competes with Big Tech
LG NOVA also serves as an outpost to secure the best talent in Silicon Valley, an area dominated by big tech companies. By accurately reading future industrial trends and executing effectively, LG NOVA will be able to move one step ahead of the competition. At the same time, their challenging and brave attitude toward innovation will give a boost to the overall organizational culture.
Dr. Sokwoo Rhee, head of LG NOVA, is the perfect example of this. After founding an IoT startup, Rhee went on to serve in the U.S. government, as assistant director for Cyber-Physical Systems at the U.S. National Institute of Standards and Technology and Presidential Innovation Fellow at the White House.
(From left to right) Joshua Di Frances, the leader of LG NOVA’s incubation office, and Darren Sabo, CEO of Primefocus Health
Joshua Di Frances, the leader of LG NOVA’s incubation office, is another key executive with experience across various areas including medicine, business and the public sector. Di Frances studied neuroscience at Boston University, an MBA from MIT and built an impressive career at CVS Health and the White House. Since joining LG NOVA in 2021, he is working to build new businesses in digital health, cleantech and immersive/AI future technology with his team of entrepreneurs-in-residence.
And, with the recent global boom in startups among AI engineering students, LG NOVA has been hosting the ‘Innovation Festival’ every fall to provide a space where innovative companies and investors can exchange information and expand.
LG NOVA will continue to seek out innovation from outside LG. To learn more about LG NOVA and its efforts to build, nurture and grow future-defining innovations, visit .
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By News Reporter
Company Pushes Boundaries With Innovative Business Models
While Balancing Core Operations and Future Growth to Create New Opportunities
SEOUL, April 25, 2024 — LG Electronics Inc. (LG) announced first-quarter 2024 consolidated revenue of KRW 21.09 trillion and operating profit of KRW 1.33 trillion. The company’s home appliance sector demonstrated global leadership, achieving record-breaking revenue and double-digit operating profit margins. The EV components sector, a key driver of future growth, continued its steady expansion. Both the TV and business solutions sectors experienced year-on-year sales growth and returned profits compared to the previous quarter.
Despite navigating challenging macroeconomic conditions such as high commodity prices, volatile exchange rates, rising interest rates and delayed demand recovery, LG achieved its highest-ever total revenue for a first quarter. This milestone underscores the effectiveness of implementing sustainable business models like subscription services and leveraging growth opportunities in the promising B2B sector. LG’s emphasis on differentiating features such as AI, energy efficiency and customer-centric design has strengthened its competitiveness in the premium market. Furthermore, the strategic approach of offering diverse product lineups and flexible pricing structures enabled the company to successfully navigate polarized demand trends.
Operating profit surpassed KRW 1 trillion for the fifth consecutive year, showcasing LG’s strong performance in the face of intensifying market competition. The company’s focus on content/service businesses and direct-to-consumer sales via the Online Brand Shop (OBS) has fueled qualitative growth. Efforts to stabilize raw material and logistics costs, coupled with production location flexibility, have further bolstered profitability.
The LG Home Appliance & Air Solution Company generated first-quarter revenue of KRW 8.6 trillion and an operating profit of KRW 940.3 billion. This represents a notable 7.2 percent increase in revenue compared to the same period last year, setting a new record for first-quarter performance. Operating profits reached the second-highest level in the company’s history, with an operating profit margin of 10.9 percent, underscoring the company’s exceptional global competitiveness.
Driven by its core technologies, particularly in motors and compressors, LG’s home appliance business continues to innovate within a mature market landscape. With a commitment to industry leadership, LG is pioneering transformative initiatives such as product subscription services and advancing the concept of ‘Affectionate Intelligence’ appliances. These innovations are tailored to empathize with and address customer needs effectively. Moreover, LG is strategically expanding its B2B ventures, including HVAC and built-in solutions, to capitalize on emerging growth opportunities.
The LG Vehicle component Solutions Company reported first-quarter revenue of KRW 2.66 trillion and an operating profit of KRW 52 billion, reflecting an 11.5 percent year-on-year revenue increase. The ongoing conversion of backlog orders into revenue is progressing steadily. Despite ongoing investments in overseas production sites to fulfill new orders and meet OEM demands, the company has maintained stable profitability, benefiting from economies of scale resulting from revenue expansion.
While there are expectations of a slight slowdown in the recent growth of EV demand, the demand for high-value-added EV components continues to rise steadily. LG is proactively addressing these market dynamics by developing a balanced portfolio, spanning from in-vehicle infotainment to powertrains and headlamps. The company aims to ensure sustained revenue growth and a stable profit base by actively adapting to these market shifts.
The LG Home Entertainment Company reported first-quarter revenue of KRW 3.49 trillion and an operating profit of KRW 132.2 billion. This represents a 4.2 percent increase in revenue compared to the same period last year, driven by a resurgence in TV demand in Europe and the successful launch of new 2024 models. The positive operating profit was fueled by the robust performance of the webOS content/service business, alongside traditional product sales. Despite challenges such as rising LCD panel prices, the company effectively managed profitability.
Looking ahead, a gradual recovery in the TV market demand is anticipated in the second half of the year. LG’s strategy focuses on leveraging its globally leading OLED TV and premium LCD QNED TV offerings while continuously enhancing the profitability of the webOS platform business, which is poised for rapid growth.
The LG Business Solutions Company reported first-quarter revenue of KRW 1.57 trillion, marking a 6.5 percent increase year-over-year, and an operating profit of KRW 12.8 billion. The launch of new LG gram laptops, featuring on-device AI and timed for graduation and enrollment seasons, garnered positive market feedback. In addition, sales of commercial display products, including electronic whiteboards and LED signage, experienced growth. While operating profit returned to positive territory from the previous quarter, there was a slight decrease compared to the same period last year, attributed to factors such as rising component prices and intensified competition.
This year, the overall IT market is expected to maintain similar demand levels to the previous year, with a slight growth anticipated in the commercial display segment. There is an expected increase in demand for high-spec IT products like gaming monitors and LED signage. LG aims to lead the market with strategic IT products tailored to customer needs, integrating gaming-specific features and OLED displays, alongside premium LED products. Efforts to proactively develop promising new businesses such as robotics and EV charging continue to drive future growth prospects.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on April 25, 2024, at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants should pre-register online to receive a private PIN. The corresponding presentation file will be available for download at the LG Electronics website before the call.
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