By News Reporter
Company Outlines Direction and “Break Through Limits” Management Policy
During Press Conference in Las Vegas
LAS VEGAS, Jan. 10, 2024 — LG Electronics’ (LG) CEO William Cho and key company executives introduced the strategies LG is implementing to achieve its ‘Future Vision 2030’ goal, during a press conference held for Korean media in Las Vegas, Nevada, U.S.A., on January 10.
The CEO began the proceedings by noting that LG had identified three major inflection points – electrification, servitization and digitalization – that will ultimately reshape business and the customer experience. The company aims to overcome challenges, such as persistent market and supply chain uncertainties, and accelerate growth by building a high-performance, results-oriented organization with a winning spirit.
“If 2023 was the year in which we set the direction for new changes, we will make 2024 the year in which we truly accelerate these changes,” said CEO Cho. “Future Vision 2030 is our promise to the market and to our customers, and we will strive as a company to deliver on this promise.”
Announced by the CEO last year, Future Vision 2030 is LG’s long-term goal to transform into ‘Smart Life Solution Company’ that can connect and expand the customer experience across various spaces, including home, commercial, mobility and virtual.
Strengthening Future Competitiveness Through Investment
CEO Cho set ‘Break through Limits’ as the key phrase for, and underlying philosophy of the company’s management policy in 2024. Having already established three focus areas for future growth – a non-hardware business model, B2B expansion and the development of new businesses – LG will now make an all-out effort to further refine its portfolio.
To start with, the company will maximize the potential of its future growth engines by expanding investment based on the strategic priorities of the business. This year, the company will more than double its level of investment; putting USD 8 billion* into R&D and other critical areas to strengthen competitiveness, moving forward.
High-growth and high-profit core businesses will also see larger investment in 2024. These include B2B businesses, such as vehicle components, HVAC, built-in appliances and digital signage, as well as the webOS platform business. LG will continue to invest in new businesses, such as electric vehicle (EV) charging and robotics, and has already announced plans to invest more than USD 40 billion* by 2030 to transform its portfolio for qualitative business growth.
Furthermore, beginning this year, LG will actively seek inorganic growth opportunities, such as mergers, acquisitions and partnerships, in addition to adopting strategies designed to invigorate its internal growth engines. Emphasis will also be placed on game-changing areas of technology that add customer value, such as AI and mixed reality (MR).
The CEO identified the newly established Overseas Sales and Marketing Company as a valuable asset for helping LG “break through limits.” Already playing an important role in LG’s global success, the new organization accounted for approximately two-thirds of the company’s total sales. The Overseas Sales and Marketing Company implements specialized strategies that take into consideration the unique characteristics of each region and market. Its efforts have maximized the performance of the business, worldwide, and have played a significant role in strengthening the capabilities and growth of LG’s international subsidiaries.
Achieving ‘Triple Seven’ Goals for Growth, Profit and Value
With platform-based service businesses, the B2B business and new businesses as its three, main growth engines, the company aims to reach its goal of ‘Triple Seven’: an average growth rate and operating profit of seven percent or more, as well as enterprise value that translates to an EBITDA ratio of seven.
Last year, despite a decline in market demand, the company performed impressively thanks to the growth of its B2B business. Over the past five years, the compound annual growth rate of LG’s B2B businesses has easily exceeded double digits, with the average annual growth rate of overall sales reaching around eight percent.
The Vehicle component Solutions (VS) Company has likewise emerged as a key business for LG, achieving annual sales of USD 8 billion* in its 10th year of existence. The global transition to EVs is expected to increase the demand for high-value EV parts, one of the VS Company’s core areas of expertise.
Based on the three pillars of in-vehicle infotainment (IVI), e-powertrains and vehicular lamps, the VS Company is projected to enjoy continuous, rapid growth. From 2024, it will focus primarily on securing software-defined vehicle capabilities, expanding its EV parts customer-base, and strengthening its leadership in smart lamps. To respond to the increasing number of new orders, the company will invest in boosting production capacity in Central America, South America and Europe.
The HVAC business, another important part of LG’s B2B portfolio, is growing quickly in emerging markets such as Asia and Central and South America, while in advanced markets, including Europe and North America – where demand for high-efficiency, eco-friendly products is strong – it continues to uncover new opportunities.
LG’s HVAC business aims to leverage the competitiveness of its technologically advanced components, such as motors and compressors, to expand its product lineup. After establishing a consortium for advanced heat pump research in Alaska, U.S.A., last November, LG plans to build an R&D base in Europe this year. The company also intends to broaden its business with the introduction of differentiated air conditioning products, such as the Dedicated Outdoor Air System.
Recognizing that B2B companies are impacted less directly by the economy than B2C companies, LG is actively bolstering its B2B business as a means to maintain sales and profit stability. The company has announced plans for the expansion of its B2B businesses, and is seeking to raise sales volume to more than USD 32 billion* (double the current level) by 2030 through launching a variety of new, value-added solutions.
LG will also fast-track the evolution of its overall business model, entering non-hardware areas, such as content, services and subscriptions, to complement its existing product-centric home appliance and TV companies. Leveraging the hundreds of millions of LG products already in use around the world as ‘platforms,’ the company expects to generate continuous sales and profits.
In line with this shift in business direction, the Home Entertainment (HE) Company aims to become a media and entertainment platform company and accelerate the growth of its webOS platform business. The HE Company is rapidly reinforcing the foundations of its platform business by expanding the webOS ecosystem to include smart monitors, IVI systems, and other TV makers. LG expects the webOS platform business to become one of the most potential growth engines in the near future.
The Home Appliance and Air Solution (H&A) Company, whose success is playing a preeminent role in supporting LG’s organization-wide transformation, is also developing a smart home solution business that combines services and subscriptions. The H&A Company’s ultimate goal is to deliver on its ‘Zero Labor Home, Makes Quality Time’ vision, which goes beyond home appliances to make homelife smarter and more convenient than ever.
The subscription business, encompassing ‘daily’ services that augment LG’s home appliance products, has been growing at a fast pace in South Korea. The overseas expansion of the subscription business is underway, with strategic markets in Asia the first outside of Korea to experience its many benefits.
The percentage of LG’s total sales accounted for by its non-hardware businesses – such as the webOS platform-based content and service business, and the home appliance subscription business – has more than doubled over the past five years.
Additionally, LG will aggressively promote the commercialization of intangible assets, such as its standard essential patents in critical areas of technology including communications, media, mobility and IoT connectivity. And, during its recent reorganization, the company established new business entities to commercialize its know-how in the construction of smart factories.
Moreover, LG will secure growth opportunities offering high potential and a high degree of business synergy. As a prime example, the LG NOVA will increase its startup promotion fund to more than USD 100 million by the end of 2024, enabling the company to help discover new technologies and solutions to drive future innovation, and to lead new business segments.
LG’s recently created EV charging business is emerging as a comprehensive EV charging solutions provider, boasting advanced charging units and control solutions, remote diagnosis and servicing capabilities, as well as vehicle battery diagnosis and robust manufacturing and sales infrastructure. Entering the North American market, the company has completed the construction of a charger production line in Fort Worth, Texas, U.S.A.
In the digital healthcare segment, the company is expanding its telemedicine business in cooperation with Amwell, and will also review the viability of offering services in areas such as prevention, diagnosis, post-management and recovery. In virtual reality, another promising business area, LG is preparing for the commercialization of MR devices. At the end of 2023, the company established an eXtended Reality business unit within the HE Company, and is continuing to collaborate on augmented reality solutions with various technology partners.
In addition, the company’s Chief Technology Office (CTO), which leads the development of future technologies, is conducting intensive R&D programs to strengthen business competitiveness and discover new core technologies. In particular, the CTO is focusing on eight areas of technology: software, system on chip, AI, robotics, materials and parts, standards, next-generation computing and cloud/data.
Accelerating DX Through Data-Driven Practices and Next-Gen ERP Investment
Through digital transformation (DX), LG will provide customers with F.U.N. – First, Unique and New – experiences, and further enhance its customer-centric management system.
The company is making large-scale IT investments to establish DX across the entire organization. On top of this, LG is building N-ERP, or Next-generation Enterprise Resource Planning, to seamlessly integrate and link the company’s business processes and systems. Intellytics Customer 360, a customer data platform that enables integrated management of data gathered from diverse customer contact points, will be rolled out globally from this year.
LG’s DX efforts extend beyond the innovation of the customer experience to the improvement of value chain efficiency; from purchasing and manufacturing to delivery and sales. Last year, by applying DX to each value chain, LG raised productivity and efficiency to the value of more than USD 240 million.*
Transforming Into a High-Performing Organization and Spreading ‘Life’s Good’ Values and Philosophy
When speaking with employees, CEO Cho often quotes noted American management scholar, Peter Drucker: “Culture eats strategy for breakfast.” The CEO truly believes that a strong organizational culture is essential to turning strategy into good performance.
During his ‘CEO F.U.N. Talk’ with employees last December, Mr. Cho outlined the company’s vision for 2024, which includes becoming a high-performing organization. He stated that, “To accomplish this, we need to intricately connect our mission, vision and goals, and have a relentless focus on execution.”
United under the brand promise of Life’s Good, a variety of integrated brand activities, spanning marketing, ESG and CSR, will be initiated starting this year. The company will spread the values and philosophy that underpin Life’s Good with the spirit of a brave optimist, while also infusing the brand with a youthful dynamism. A self-professed ‘brave optimist,’ LG is an innovator that daringly faces difficulties, believes in pursuing opportunities for improvement, even during tough times, and finds solutions by listening and paying attention to its customers and the market.
Visitors can experience LG’s latest innovations at its CES booth (#16008, Las Vegas Convention Center) from January 9-12. For more information on LG products unveiled at CES 2024, please view the
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* Exchange rate: KRW 1,250 per USD.
By News Reporter
Company’s Game-Changing Innovation Leverages the Latest AI, Autonomous Mobility
Technology and Conversation Services for a Smarter Life at Home
SEOUL, Dec. 27, 2023 — LG Electronics (LG) is ready to unveil its innovative smart home Artificial Intelligence (AI) agent at CES 2024. LG’s smart home AI agent boasts robotic, AI and multi-modal technologies that enable it to move, learn, comprehend and engage in complex conversations. An all-around home manager and companion rolled into one, LG’s smart life solution enhances users’ daily lives and showcases the company’s commitment to realizing its “Zero Labor Home” vision.
With its advanced ‘two-legged’ wheel design, LG’s smart home AI agent is able to navigate the home independently. The intelligent device can verbally interact with users and express emotions through movements made possible by its articulated leg joints. Moreover, the use of multi-modal AI technology, which combines voice and image recognition along with natural language processing, enables the smart home AI agent to understand context and intentions as well as actively communicate with users.
Functioning as a ‘moving’ smart home hub, this AI agent connects with and controls smart home appliances and household IoT devices. Through LG’s latest collaboration with Qualcomm Technologies, Inc., the AI agent is equipped with the Qualcomm®, Robotics RB5 Platform, enabling powerful on-device AI features such as face and user recognition. The AI agent utilizes its built-in camera, speaker and various sensors to gather real-time environmental data, including temperature, humidity and indoor air quality. LG’s advanced AI technologies analyze this data, continuously learning and combining it with external information. The AI agent can even act as a pet monitor and security guard, providing users with the ability to see and care for their pets remotely and sending alerts if any unusual activity is detected.
What’s more, the LG smart home AI agent offers exceptional versatility and scalability. For example, it can autonomously patrol the home when no one is there, moving from one room to another and sending notifications to the user’s smartphone if it finds an open window or any lights left on. Additionally, it can help conserve energy by connecting with a smart outlet and turning off unused devices throughout the house.
When the user returns home, the AI agent greets them at the front door, discerns their emotions by analyzing their voice and facial expressions, and selects music or other content to suit their mood. It also assists users in their daily lives by providing transportation details, weather updates, personal schedules or reminders to take medications.
With the smart home AI agent and its active hub features, LG aims to liberate users from the burden of housework and seeks to establish itself as a dominant player in the smart home market.
“Our groundbreaking smart home AI agent combines cutting-edge autonomous mobility and AI technologies with advanced communication capabilities and services to help free customers from household chores,” said Lyu Jae-cheol, president of LG Electronics Home Appliance & Air Solution Company. “A smart life solution company, LG will continue to help customers experience a smarter, more enjoyable life at home.”
Visitors to CES 2024 from January 9-12 can see all of the LG’s latest smart life solutions, including the smart home AI agent, at the company’s booth (#16008, Las Vegas Convention Center).
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By News Reporter
LG is a staunch supporter of the arts and of the South Korean city of Busan’s bid to host the World Expo in 2030. Recently, the company gave a boost to both causes when it sponsored Sol’Opera – a private Korean opera company – and its Opera Chun-Hyang Gala Concert at Brazil’s Teatro Plínio Marcos on May 30. Based in Busan, Sol’Opera is currently touring South America and Europe, taking its memorable production to five prestigious opera houses to promote Korean culture and Busan’s quest to host the first World Expo of the next decade.
For LG, the sponsorship represented a wonderful chance to help showcase a most charming and elegant example of Korea’s rich artistic tradition to an overseas audience. It also presented the company with the perfect opportunity to ask VIP guests at the gala concert for their support for Busan 2030.
Greeting people as they entered Teatro Plínio Marcos was a large screen LG LED TV playing a promotional video for the 2030 Busan World Expo. The video highlighted the vibrancy, beauty and culture of the South Korean port city, and featured the message “LG supports Busan’s Bid for World Expo 2030 (A LG apoia a candidatura de Busan para a World EXPO 2030)”.
After the stunning opera had concluded, Jung Kyu-hwang, vice president of LG Central and South America, and other LG executives, addressed the 200 guests in attendance, thanking them for coming to the performance and asking for their support for Busan’s bid to host the World Expo. Among the guests were members of the Brazilian congress and eminent figures from across the Brazilian business world and high society.
Earlier this March, LG CEO William Cho visited several Central and South American countries, including Brazil and Chile, as a special envoy for the Ministry of Foreign Affairs of the Republic of Korea. During his visit to Brazil, the CEO met with local congressmen, including Senator Rodrigo Pacheco, at the Korean Embassy, where he shared the unique characteristics of Busan – his hometown – and communicated the significance that hosting the World Expo would have for South Korea and its people.
Since last year, the company has been very active in showing its strong support for Busan’s bid, even setting up a Busan 2030 task force overseen by the CEO himself. Leveraging its vast global network, LG is passionately promoting ‘World Expo 2030 in Busan’ all over the world, from Korea, Europe and Africa to Central, North and South America.
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By News Reporter
A Stunning Achievement, the Larger-Than-Life 97-inch OLED TV Comes With
Real Time Video and Audio Wireless Transmission up to 4K 120Hz
LAS VEGAS, Jan. 4, 2023 — LG Electronics (LG) is introducing its 97-inch LG SIGNATURE OLED M (model M3), the world’s first consumer TV with Zero Connect1 technology, a wireless solution capable of real-time video and audio transmission at up to 4K 120Hz. The revolutionary new OLED TV M3 delivers superior picture and sound quality as well as greater flexibility to install and connect. A stunning achievement of technology and design, LG’s wireless 4K OLED is the recipient of CES 2023 Innovation Awards in two categories.2
Unlike conventional TVs, where all input ports for connecting external devices are located on the rear or sides, the M3 comes with a separate Zero Connect box that sends video and audio signals wirelessly to LG’s cinematic, 97-inch screen. Because it can be placed away from the TV, the Zero Connect box helps to create a cleaner, distraction-free viewing environment and gives users greater freedom to arrange their space. The box comes with multiple ports for plugging in commonly used HDMI devices, such as cable/satellite set-top boxes and gaming consoles and can also connect wirelessly with compatible soundbars for richer, more powerful audio and additional cable-free convenience. Along with offering users more freedom when curating their space, the M3 and its Zero Connect box allows users to easily install the new LG OLED TV without entangled cables. What’s more, without any wires to disturb users from enjoying their viewing experiences, the sleek minimalism of the 97-inch TV’s One Wall Design becomes even more breathtaking to behold.
LG’s wireless solution leverages state-of-the-art technologies to provide reliable video and audio transmission to the M3’s self-lit OLED screen, allowing users to enjoy content at 4K 120Hz and clear, crisp sound without interruption or degradation of quality. To ensure the seamless transfer of data from the box to the TV, the company developed an algorithm that instantly identifies the optimal transmission path. The algorithm also helps to minimize transmission errors or disruptions as it can recognize changes in the immediate environment – such as people or pets moving around the room – and switch paths accordingly. Additionally, for maximum signal strength, the box’s antenna can be easily rotated and/or tilted to align with the TV’s location. For maximum usability, the Zero Connect box is voice recognition-enabled, meaning users can turn on and manage the M3 and connected devices using simple, spoken commands.
Despite the imposing size of its screen, the M3 blends in effortlessly with one’s interior décor courtesy of its understated One Wall Design. The M3 and its integrated bracket sit flush against the wall with no visible gap, presenting a chic, art gallery aesthetic that augments the TV’s outstanding self-lit picture quality.
LG’s cutting-edge 4K OLED TV with Zero Connect wireless solution will be on show during CES 2023 from January 5-8 at the company’s booth (#15501, Central Hall, Las Vegas Convention Center). Keep up with all of LG’s exciting announcements at CES by following #LGCES2023 on social media.
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1 Zero Connect between TV Screen and AV Box.
2 Video Display and Embedded Technologies.
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By News Reporter
Busan, South Korea’s beautiful port city, is among several cities to have officially announced their desire to host World Expo 2030, after it turned in a formal bid to the Bureau International des Expositions in September under the city’s theme: “Transforming Our World, Navigating Toward a Better Future.”
To express its passionate support for a Korean city beloved by millions across the globe, LG CEO William Cho recently headed to three countries in Africa including Tanzania, Côte d’Ivoire and Ethiopia as a special envoy for South Korea.
On his first visit to the region since his appointment last year, Mr. Cho was on a mission to not only promote greater cooperation with East Africa, but also highlight the company’s full support for vibrant Busan’s World Expo 2030 ambitions.
During his visit, CEO Cho also made sure to state how East Africa had become a promising, rapidly-growing market through strong economic fundamentals underpinned by a youthful, urbanizing middle-class population and ever-increasing investment in infrastructure and other key economic sectors.
“As we see great opportunities and potential in this market, we will continue to strengthen our business relationships with countries in the region to help them unlock their full potential,” said Mr. Cho.
While visiting Tanzania, Mr. Cho met with Prime Minister Kassim Majaliwa and several other senior government officials to pledge the company’s commitment to expanding the nation’s distribution and retail network in an effort to aid the growth of the economy and make life better for local communities.
During this memorable meeting, Prime Minister Majaliwa lauded LG for believing in the country through investment and creating opportunities for locals.
“We applaud LG for its contributions to our economy and reaffirm our government’s support in creating a conducive environment for local and foreign companies willing to do business in Tanzania,” said Prime Minister Majaliwa.
To expand its business in Kenya, Tanzania, Ethiopia and Sudan, LG is opening new shops and refurbishing existing ones as it seeks to keep pace with the continent’s rising demand for the company’s home appliances, entertainment devices and air solutions.
The company will continue championing Busan, Korea’s picturesque coastal city, as the perfect host for World Expo 2030 by executing diverse promotional events worldwide with the help of its influential global network comprised of 140 subsidiaries.
Contributed by LG Kenya
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