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By News Reporter
LG Electronics CEO William Cho, in an exclusive interview with Bloomberg, discussed the company’s business strategy, growth areas, and the competitiveness of LG’s AI. Cho highlighted the focus on expanding B2B, subscription services, and its webOS-based advertising and content business to drive growth.
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By News Reporter
Driving Business Portfolio Innovation to Maximize the Potential of Key Business Areas
and Advance B2B, Platform-Based and Emerging Ventures
SEOUL, Aug. 21, 2024 — LG Electronics (LG) is rapidly evolving into a “Smart Life Solution Company” by leveraging its decades of customer insight, manufacturing expertise and technological prowess as a leader in home appliances. As part of its mid- to long-term strategy, “Future Vision 2030,” LG is committed to ongoing transformation and growth.
On August 21, LG hosted an investor forum at LG Sciencepark in Seoul, bringing together domestic and international investors and analysts. During the event, CEO William Cho outlined the company’s progress and strategic direction since the announcement of Future Vision 2030 last year, emphasizing key achievements. The forum was also streamed live on
link hidden, please login to view. In addition to CEO William Cho, the event was attended by CFO Kim Chang-tae, CSO Lee Sam-soo and other top executives responsible for key business areas such as heating, ventilation and air conditioning (HVAC), webOS content & services and subscription business. The event aimed to communicate the progress and plans of LG’s mid- to long-term strategy directly to the market, ensuring greater transparency.
Following the announcement of the 2030 Future Vision and the shareholders’ meeting, LG continues to engage with the market and stakeholders through direct communication from the CEO and key business leaders, as demonstrated in this investor forum.
Under the Future Vision 2030 plan, LG aims to become a “Smart Life Solution Company” by connecting and enhancing customer experiences across various living spaces, including homes, commercial environments, mobility and virtual platforms. To achieve this, the company plans to accelerate the transformation of its business portfolio towards a more future-oriented model. The goal is to achieve the “Triple Seven” targets: a 7 percent average growth rate, 7 percent operating profit and an enterprise multiple (EV/EBITDA) of 7.
At the event, LG shared its interim financial progress under Future Vision 2030, revealing an 8 percent increase in revenue, a 6 percent operating profit and a fourfold growth in EV/EBITDA compared to the previous year, based on the first half of this year’s business performance (excluding LG Innotek).
“Over the past year, we have been steadily laying the foundation for achieving our future vision, and we take pride in creating ‘structural changes’ and ‘sustainable outcomes’ in various areas,” said CEO Cho. “With strong confidence and a sense of responsibility, we will continue to advance towards our goals.”
Four Strategic Directions for Business Portfolio Innovation
CEO Cho detailed LG’s approach to business portfolio innovation, focusing on four key directions: maximizing the full potential of existing key businesses, expanding platform-based service models, accelerating the growth of B2B and fostering New-to-LGE businesses.
The first direction of maximizing the full potential of current businesses involves a strategy to overcome the limitations of mature core businesses, such as home appliances and TVs. This includes integrating subscription services into its home appliance offerings and expanding direct-to-consumer (D2C) sales channels, providing customers with more choices and enhanced experiences.
CEO Cho explained that these efforts are leading to steady growth and profit generation in core businesses, which serve as cash cows for the company. Despite a double-digit decline in the Korean home appliance market, LG’s domestic appliance sales are on the rise, driven by the creation of new demand through subscription services. In addition, overseas home appliance sales have grown more than 1.5 times faster than the market average over the past three years, driven by expanded product and price lines and D2C sales.
Second, expanding platform-based service models focuses on leveraging the hundreds of millions of LG products sold worldwide as a platform to generate revenue from content, advertising and services. A prime example is LG Home Entertainment Company’s TV business, which aims to accelerate the webOS advertising and content business with the goal of transforming the company into a media and entertainment platform powerhouse. Since 2018, the annual growth rate of the webOS platform-based advertising and content business has reached 64 percent.
In terms of accelerating the growth of B2B businesses, LG is achieving significant results in areas such as vehicle components, HVAC and smart factories. These advancements are closely aligned with market inflection points like digitalization and electrification. LG aims to increase the B2B share of its total revenue to over 45 percent by 2030. The B2B share, which was 27 percent in 2021, has already risen to 35 percent in the first half of this year.
LG’s vehicle component solutions business has secured an order backlog exceeding KRW 100 trillion (USD 74 billion), with sales of high-value products like digital cockpits growing rapidly. The company is also expanding its global production footprint to support this growth. In the HVAC sector, LG leads the high-efficiency market with its advanced inverter and heat pump technologies, and it is actively targeting the cooling systems market for AI data centers, where demand is surging. LG also has plans to expand its smart factory business into industries with rising factory automation needs, such as semiconductors, pharmaceuticals, biotechnology and food & beverages.
The company continues to invest in promising new business areas that will serve as the foundation for future growth. In the commercial robotics sector, LG is focusing on securing AI-driven, software-defined robotics capabilities. For the electric vehicle charging business, LG is collaborating with leading global partners to seize business opportunities.
Portfolio Innovation Yields Emerging Unicorn Ventures
LG also highlighted the success and growth potential of key businesses that have become core engines of the company’s future growth, showcasing significant results from its portfolio innovation.
“Inspired by the term ‘unicorn’ used to describe ventures valued at over KRW 1 trillion (USD 740 million) in the market, we refer to new business models generating annual sales of over KRW 1 trillion (USD 740 million) as ‘unicorn businesses,’” said CEO Cho. “Our home appliance subscription service surpassed KRW 1 trillion (USD 740 million) in annual sales last year, securing its status as a ‘unicorn business.’ Additionally, several seed businesses, which are expected to become the next unicorns in the near future, are accelerating their growth.”
Home Appliance Subscription Business Achieves Unicorn Status
LG is pioneering a paradigm shift in the home appliance business by combining services with its home appliances through a subscription model. Unlike traditional product-centric models that generate one-time sales, the subscription model maintains ongoing customer relationships, offering optimized care services post-purchase, thereby generating continuous revenue.
Last year, the subscription business achieved KRW 1.134 trillion (approximately USD 840 million) in annual revenue, marking a 33 percent growth over the previous year and securing its place as a unicorn business. This growth is accelerating, with revenue expected to rise by nearly 60 percent this year to exceed KRW 1.8 trillion (USD 1.3 billion).
The rapid growth of LG’s home appliance subscription business is driven by its ability to meet diverse customer needs. Customers can lower their initial purchase burden and maintain their appliances in top condition with expert care services for the desired duration, with free services provided during the subscription period. Customer responses highlight the high value of the subscription business, with its share of LG’s domestic home appliance sales rising from 15 percent last year to over 20 percent this year.
webOS-Based Advertising & Content Business Set to Become the Next Unicorn
LG’s webOS-based advertising and content business leverages millions of devices worldwide as a platform to generate additional revenue streams. This year, revenue is expected to exceed KRW 1 trillion (USD 740 million), a fourfold increase compared to 2021. To sustain this rapid growth, LG is focusing on expanding its customer base, diversifying revenue models and strengthening business capabilities.
In platform businesses, the more devices that use the platform, the larger the business scale becomes. LG has sold approximately 220 million smart TVs over the past decade. In addition, LG licenses its webOS to external companies lacking their own operating systems, with non-LG brands having sold over 10 million webOS TVs. The webOS platform is also expanding beyond TVs to include automotive infotainment and smart appliances, with the company securing leading global OEMs as clients for its in-vehicle infotainment systems.
LG provides a variety of content via webOS, operating revenue models based on advertising and services. A prime example is LG Channels, a free, ad-supported streaming service offering over 3,800 channels in 29 countries. LG plans to diversify its services into high-growth areas such as gaming, personalized shopping and Transactional Video On Demand.
To bolster its webOS platform capabilities, LG plans to invest over KRW 1 trillion (USD 740 million) by 2027. The company will continue collaborating with more than 4,000 global content partners and expand tailored advertising solutions through its data analytics subsidiary, Alphonso.
Chiller Business Targets AI Data Center Cooling Market: On Track to Become a Unicorn in Three Years
LG’s HVAC business offers a broad portfolio, ranging from residential air conditioners to commercial systems for large buildings, schools, public institutions and industrial facilities. This is one of LG’s fastest-growing core businesses, driven by market trends like decarbonization and electrification.
The chiller business, which provides cooling solutions for large buildings, has seen new opportunities as global tech giants increase demand for data centers amid the AI boom. Over the past three years, LG’s chiller business has achieved an average annual growth rate of over 15 percent, with overseas sales more than doubling during the same period.
LG plans to leverage its extensive experience in supplying chillers to power plants, data centers and other facilities, along with its high-efficiency core technologies, to actively target the data center cooling market. In addition, LG is preparing to commercialize new solutions, such as liquid immersion cooling, which are gaining traction in the market.
“By 2030, 50 Percent of Total Sales and 75 Percent of Operating Profit Will Come from B2B, Platform-Based and New Businesses”
To achieve its mid- to long-term goals outlined in Future Vision 2030, LG will consistently drive business portfolio innovation. The company aims to generate 50 percent of total sales and 75 percent of operating profit from three key focus areas: expanding platform-based services, accelerating the growth of B2B and nurturing New-to-LGE businesses.
“These goals are rapidly becoming a reality,” said CEO Cho. “We will ensure that LG’s new value proposition is recognized by all stakeholders, securing sustainable growth and profitability over the long term.”
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* Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate for the six-month period of the year 2024 — KRW 1,349.55 per USD.
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By News Reporter
Space has the power to shape both the perception and perspective of our experiences. Fueling everyone’s passion for interior design is the emotional influence of our surroundings and our appetite for aesthetics. From the uninitiated to the aficionado, we make conscious efforts to reflect who we are through our home decor. Interior design trends are inspired by cultural events and, at times, are reactions to movements in popular culture. With such powerful actors, maintaining balance and introducing elements that complement rather than overpower are gaining value. This is especially important when it comes to integrating essential yet potentially disruptive elements like the TV into a room’s decor. Fortunately, LG has devised a solution that resolves this dilemma while letting people stay true to their distinctive style.
With LG OLED M, the TV is no longer the interior designer’s nemesis but a tool to elevate the décor and tailor spaces to modern lifestyles through its seamless integration. Compact and discreet, the elegant OLED TV with the Zero Connect Box is the only OLED TV that can send both 4K 120Hz video and audio wirelessly, helping homeowners free their TV from cables and external devices and gain the freedom to achieve their dream living spaces.
More Space for the Things You Love
Feeling overwhelmed by the mess around your TV screen? Visible cables and bulky furniture can take up valuable space much to the frustration of the designer. A cluttered space not only disrupts the balance of sophistication and functionality they worked so tirelessly to curate, but it also limits their ability to express a distinctive personal style through their home design.
LG OLED M with the Zero Connect Box declutters the TV area by banishing tangled cables and external devices to more discreet locations like on a side table, bookshelf, cabinet or coffee table – practically anywhere the designer sees fit. This feat also eliminates the need for a bulky TV unit or cabinet which often disrupts the room’s design, freeing up space to display ornaments, paintings or maintain a simple look.
With the maximalism trend growing, where every inch of space is carefully considered in the overall aesthetic, the Zero Connect Box emerges as a versatile solution. By eliminating tangled cables and external devices around the screen, homeowners can enjoy newfound freedom to experiment with placement, colors and textures, helping them build the aesthetic harmony they desire.
The TV for Sophisticated Simplicity
As more designers embrace the quiet luxury trend, which champions effortless elegance over the risk of being ostentatious, the LG OLED M and its Zero Connect Box has become the ideal companion to realize a home of understated sophistication. Creating a cohesive look through muted tones, refined finishes and simplicity under the quiet luxury concept, the LG OLED M elevates the elegance of a living space with the Zero Connect Box. A nightmare for designers seeking to develop a space that looks luxurious but not overly so, cables and clutter limit their design freedom as they must be hidden by more furniture.
With the Zero Connect Box, it’s easy to inject luxury into the TV area in an understated and effortless way, simplifying the space by removing unnecessary clutter. And thanks to the OLED screen’s sleek, ultra-thin design, it mounts flush to the wall to resemble a sophisticated picture frame that blends into the décor instead of taking attention away from it.
Hassle-Free Flexibility
With the Zero Connect Box, designers are no longer tied down by the length of their TV cables or the placement of furniture. They can be more strategic with their floor plans. The Zero Connect Box unlocks new room layouts without the hassle of rewiring or moving heavy furniture. Want to rearrange the furniture for movie night or update the interior with the seasons? No problem, as the LG OLED M can be moved around the room with ease as it eliminates the hassle of untangling, disconnecting and reconnecting multiple cables.
Another major benefit of the Zero Connect Box is how it allows users to effortlessly connect or disconnect devices without having to reach behind the screen or wrestle with cables – which also pose a trip hazard. It gives the user the power to place their Zero Connect Box anywhere within reach of a power cord, and therefore the ability to manage all connected devices in a more convenient and well-organized space.
A Home Theater for Every Occasion
Another home trend emerging in recent years is a home theater that adapts to modern living. With LG OLED M, home designers can create a home cinema that doubles as a gaming room. In this space, the console or Blu-ray player, which light up when in use, can be placed out of view instead of under the TV to minimize distractions and maximize immersion.
LG OLED M mounts flush to the wall while its Zero Connect Box transfers video and audio wirelessly to the screen, so what the viewer sees ahead is just the OLED TV. This makes it easier to appreciate the incredible self-lit picture quality of the OLED screen, which facilitates higher immersion thanks to less distractions between them and the display.
What’s more, LG OLED TVs not only deliver perfect blacks and offer large screen sizes, but they often perform better than projectors in brighter environments, so the room doesn’t have to be pitch black to achieve the level of immersion gamers live for.
To further explore how LG is innovating consumers’ ability to create living spaces that perfectly match their lifestyles, head to the
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By News Reporter
Advanced technologies are making life smarter and more convenient. At home, our living spaces have been upgraded through an ever-expanding ecosystem of connected appliances, devices and technologies. However, despite the time-saving benefits of these impressive innovations, the daily chores we love to avoid haven’t gone away just quite yet. Dedicated to realizing the Zero Labor Home, LG recently brought ‘the complete liberation from housework’ a step closer with the introduction of its groundbreaking household companion, the LG Smart Home AI Agent.
Although small in stature, LG’s Smart Home AI Agent has outsized capabilities. Not only does it act as a hub seamlessly connecting and controlling a wide range of home appliances and Internet of Things (IoT) devices,1 it also independently navigates its way around the house thanks to a clever, two-legged wheel design and a raft of cutting-edge tech. Built-in cameras, microphones and various sensors enable LG’s little AI Agent to collect a variety of data from the surrounding environment, which it then leverages to effectively monitor and manage the home.
Captured through multi-modal sensing, the collected data is processed and analyzed by the LG home appliance AI platform. This makes it possible for the Smart Home AI Agent to comprehend users’ intentions such as voices and facial expressions, understand its surroundings and recommend specific courses of action (such as activating or changing the settings of a particular connected appliance or device) to create greater ease, simplicity and comfort from the burden of housework.
At KBIS 2024 in Las Vegas this February, LG’s versatile Smart Home AI Agent highlighted the progress the company is making toward achieving the Zero Labor Home. Beyond its many abilities as a butler, assistant and companion, the diminutive robot is also quite the dancer. Before an enthralled audience, a group of perfectly-in-sync Smart Home AI Agents showed off their skills on the dancefloor with an endearing and entertaining choreographed routine.
Live demonstrations and short videos focusing on real-life usage scenarios at LG’s booth revealed how the AI Agent can help at home, from answering user’s questions, to greeting visitors at the door, to delivering useful notifications from connected appliances and other smart home devices.
In the booth’s Laundry section, the robot assumed the duties of a personal butler, offering up useful information, such as when the washing has finished, and helpful suggestions, like the best way to care for one’s laundry. The Kitchen section introduced the AI Agent as a convenient mobile hub and home assistant, seamlessly connecting with LG’s advanced kitchen appliances and presenting delicious recipes based on available ingredients. Inside the Living section, the Agent showed how it can be a valuable companion, notifying users when a visitor has arrived, inspecting each room as an indoor security officer, and even turning off the smart lightings when everyone has gone to bed.
Through LG’s collaboration with Microsoft, the Smart Home AI Agent integrates both the Azure AI Speech Service, which is based on voice recognition and voice synthesis technology, and the Azure OpenAI Service. Microsoft’s advanced Azure AI solutions help to ensure accurate voice recognition and give the robot its aptitude for comprehending nuanced commands, even in noisy environments like the Las Vegas Convention Center – the venue for KBIS 2024.
What’s more, the AI Agent’s Large Language Model (LLM)-based generative AI conversation service enables a more sophisticated level of robot-human interaction. Users can enjoy having natural, two-way conversations on various topics and conveniently control their home appliances with casually-spoken voice commands. Additionally, utilizing voice and facial recognition technology, LG’s intelligent, little home agent can distinguish between different users. To show its own ‘personality’ and ‘emotions,’ the robot changes the expressions on its face display, and can also convey its reaction to events and user interactions through movements generated by its articulated leg joints.
With ThinQ integration and the expansion of its open platform ecosystem, LG aims to accelerate both the adoption of the Smart Home AI Agent and the realization of its goal to liberate customers from the burden of household chores. Much like ThinQ UP appliances, the AI Agent will be able to receive continuous upgrades via the ThinQ app,2 providing users with an evolving, personalized smart living platform and a smart home solution.
A genuine game-changer, the LG Smart Home AI Agent is set to transform the way we interact with our living spaces, bringing us that much nearer to the realization of the Zero Labor Home.
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1 Feature availability may vary depending on region and usage environment.
2 Feature and service availability of ThinQ UP may vary depending on region.
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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.
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