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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
For the seventh consecutive year, LG served as the exclusive technology partner of CASACOR SP, the Americas’ leading cultural platform for architecture, landscaping, art and interior design. The 37th edition of CASACOR was held in São Paulo, where LG showcased an impressive array of 180 products across 45 inspiring spaces. Reaching record attendance with an estimated 128,000 visitors, CASCOR 2024 was hosted in one of the most important architectural landmarks in the city. Designed 63 years ago by architect David Libeskind, the venue features more than 10,000 square meters of built area.
To mark the occasion, over 80 journalists and influencers were invited to Casa Ñe’é LG, the company’s launch event house, which featured the most innovative creations in the market today. Designed by respected architect Nildo José, the 377-square-meter brand space offered a profound reflection on what makes us human. The Né’é in Casa Ñe’é LG is Guarani – a language of the indigenous group of South America (Brazil, Argentina, Paraguay, Uruguay and Bolivia) – meaning “soul,” representing the vital spirit that sustains life and the essence of everything.
The hall’s welcoming atmosphere came in large part from the company’s stylish ARTCOOL Gallery air conditioner and expansive screen, which is comprised of four Transparent OLED displays that leverage several million self-illuminating pixels to illustrate the project’s story in unprecedented detail.
The living room featured LG OLED M3, the world’s first-ever wireless TV. This stunning 97-inch TV comes with the Zero Connect Box, which wirelessly transmits video and audio signals at 4K 120Hz via a fast Wi-Fi connection. The M3 also boasts LG’s One Wall Design, allowing it to mount flush to the wall for a heightened sense of sophistication.
Also on display was the newest LG OLED evo C4, equipped with the AI α9 Gen 7 that significantly enhances performance. In line with LG’s renowned lineup of OLED TVs, this model also features the ultra-slim One Wall Design for a minimalist look and feel.
Casa Ñe’é LG was fully equipped with all the essential appliances: LG InstaView Side by Side smart refrigerator with Craft Ice, LG NeoChef microwave with exclusive Scan to Cook feature, LG Studio electric oven and the InstaView stove.
Top architect Leticia Nannetti was tasked with designing the laundry room with functionality at its core. She delivered this by beautifully integrating the LG WashTower, a premium appliance that fosters moments of interaction, into the interior design to harmonize with the ambiance, evoke sentimental memories and celebrate diversity.
In Isabela Akkari’s healthy café, Flávia Burin and Bruna Monetti of Studio HA sought to answer the question: ‘What ancestors do we want to be?’ With this reflection, the exceptionally talented architects created a space that values beauty and offers hope, using warm shades of pink, fluid forms, fabric ceilings and settings that encourage closeness between people.
Led by chef Isabela Akkari, the cafe not only promoted healthy eating but also featured all of LG’s cutting-edge technology. This includes the Smart LG Inverter Inverse Refrigerator, one of the most economical inverse refrigerators on the market; the LG Grill NeoChef microwave, the only microwave with connectivity; and the LG InstaView Stove, which lights up the interior with just two touches.
Open to visitors until July 28 at São Paulo’s Conjunto Nacional, Casa Ñe’é LG was a great demonstration of how LG’s innovative products can be incorporated into beautiful spaces, providing technological solutions that make daily life simpler and even more efficient.
Contributed by LG Brazil
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By News Reporter
Since CEO William Cho
link hidden, please login to view of becoming a ‘Smart Life Solutions’ company, LG has made significant changes to various parts of its business and expanded new areas. To celebrate one year since this bold move, the company has launched an advertising campaign showcasing the remarkable progress it has made so far.
Titled ‘Connecting Spaces and Future,’ the campaign highlights this vision and demonstrates a strong dedication to innovation, aiming to strengthen its reputation as a leading innovator across various sectors. The campaign features videos showcasing LG’s ongoing transformation into a ‘Smart Life Solutions’ company through an ever-evolving product portfolio. Starting July 27, three videos will be released focusing on its mobility solutions, air solutions and more.
This marks the first LG video campaign to focus on the company as a whole since ‘Digitally Yours’ in 2000. The new video content seeks to underscore LG’s mobility solutions and the unique experiences they offer, as well as AI smart home solutions that provide personalized environments, webOS solutions that connect various devices on a single platform, and the core technologies including HVAC solutions that will drive future industries.
The mobility solutions video illustrates LG’s efforts to expand home experiences onto the road and deliver unique customer experiences based on three main themes: Transformable, Explorable and Relaxable. It also features the company’s emerging electric vehicle (EV) charging business. The video on its air solutions highlights excellent HVAC technology, including chillers and heat pumps, and a commitment to innovating global solutions that enhance customers’ lives in every space, from residential to commercial.
This event is in line with LG’s desire to showcase its innovative efforts beyond the home appliance space. By highlighting other categories and sectors it pioneers, LG aims to resonate with younger audiences and establish a youthful, dynamic brand image.
On the first anniversary of the announcement of its ‘Smart Life Solutions’ transformation, LG is expanding its achievements across three new pillars of growth: accelerating B2B (including vehicle components and HVAC), pursuing platform-based services (subscriptions, webOS-based advertising and content, etc.) and exploring new business areas such as EV charging.
Notably, after surpassing KRW 10 trillion in sales last year, LG’s vehicle components business carried on in the same form this year by achieving a record-high performance in the second quarter. The company’s commercial HVAC business, which is also growing rapidly, is further diversifying its business portfolio. LG is continuously leveraging its globally competitive HVAC solutions across the entire value chain, from products, technology, production and services, while actively targeting backend industries supporting AI infrastructure, such as data centers.
Starting this year, LG launched its , integrating AI and digital transformation with the company’s manufacturing and production data. This business undertakes production consulting, develops production methods, equipment and operation systems, and trains production technology personnel. Furthermore, the company expects to secure orders worth approximately KRW 300 billion in supplying smart factory solutions to business clients. Meanwhile, the company is actively expanding its webOS-based advertising and content business from TVs to automotive infotainment, with sales set to exceed KRW 1 trillion this year.
LG is accelerating its shift from a traditional product-centric business model to a recurring model that continuously generates revenue through intangible, non-hardware businesses such as subscriptions, content and services.
Stay tuned to to discover LG’s vision in greater detail and get the latest updates on the company’s ongoing transformation into a Smart Life Solutions company.
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By News Reporter
Home is where the heart is, and it’s also often the best place to start when you’re seeking to make a positive difference in the world. A prime example is the ‘home electrification’ trend, which, in a nutshell, helps drive sustainability by replacing fossil fuel-powered household appliances with cleaner and more efficient electricity-driven ones.
Home electrification includes the installation of electric appliances and heating and cooling systems, such as heat pumps, which transfer heat from one place to another by circulating refrigerant. Heat pumps provide the practical benefits of year-round indoor comfort and lower utility bills. When integrated with solar panels and battery storage systems, they take things a step further – empowering homeowners with energy independence and the ability to power their homes during outages.
According to a study published in the peer-reviewed scientific journal Joule, electrification could reduce greenhouse gas (GHG) emissions in the residential sector by 36 to 64 percent and cut overall GHG emissions in the U.S. by 5 to 9 percent.1 To accelerate the transition to electrification, many governments are now offering incentives and subsidies, such as those included in the U.S. government’s Inflation Reduction Act, to encourage the adoption of energy-efficient home technologies.2
Electrifying your home with LG brings the compelling advantages of the company’s industry-leading core-tech and extensive lineup of sophisticated, energy-efficient products. LG’s innovative core components, including reliable, high-efficiency motors, ensure unparalleled performance and energy-savings across a variety of home appliances.
The company also provides the seamless connectivity and easy energy management with ThinQ Energy, compatible with a comprehensive range of LG appliances and HVAC systems. The LG Home Energy Platform, centering on the Energy Storage System (ESS), optimizes energy usage to prevent waste and emissions, and enables smart control of connected home appliances.
Many of LG’s products, which help reduce carbon emissions and enhance energy efficiency, are eligible for rebates. From ENERGY STAR® certified induction cooktops to low energy-consumption, low-emissions HVAC systems, LG offers a diverse array of cutting-edge solutions that can drastically decrease household reliance on fossil fuels and boost efficiency at the same time. Among these are water heaters equipped with heat pumps, and innovative laundry solutions like the impressive WashCombo washer-dryer with Inverter HeatPump.
Embracing home electrification is an investment in a cleaner, healthier future. With LG’s energy-efficient appliances and core technologies, you can transform your living space into an all-electric abode – shrinking your energy footprint, minimizing your environmental impact and making a positive difference in the world.
To learn more about LG’s solutions with energy efficiency for home electrification, stay tuned to
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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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