Koo Kwang-mo’s ‘New LG’ initiative pays off

16-Jan-2021 Intellasia | KoreaTimes | 6:02 AM Print This Post

LG Group Chair Koo Kwang-mo’s “New LG” initiative has found great synergy and success across the diverse businesses of the conglomerate.

Since Koo took the helm of the corporation in June 2018, LG Group’s market capitalisation has soared by 70 trillion won, reaching a total of 163.3 trillion won.

The figure comes as a particular surprise amid the COVID-19 pandemic, which heightened uncertainties. However, the results were made possible with Koo’s judgment to strengthen the conglomerate’s portfolio to focus on future growth engines.

LG has focused on raising customer product satisfaction. It also expanded development in the IT data sector, in addition to strengthening R&D, product planning and digital transformation efforts.

The conglomerate especially bolstered its large screen OLEDs, petrochemicals, electric vehicle (EV) batteries and fifth-generation (5G) networks to enhance its competitiveness in the global market.

To better adapt to the ever-changing environment, the group has increased cooperation with foreign firms, boosted its premium lineups and increased infrastructure investments.

Last month, LG Electronics announced it would form a joint venture with Canadian auto parts maker Magna International to become the industry’s leader in the areas of electric and connected vehicles.

The company, whose linchpin business is home appliances, set up its vehicle component solutions (VS) business division in 2013 to bolster future growth and has been working to beef up its presence in the automotive sector.

LG Electronics has also been speeding up efforts for digital transformation to provide differentiated services to its customers in the form of big data and AI-based home appliances, while expanding its presence in the robotics sector providing customised services in the hotels, hospitals and food and beverage sectors.

LG Display has been broadening its large-screen OLED business to better meet a rise in demand, while showcasing diverse OLEDs in the forms of wallpaper, rollable and sound OLEDs and clear displays to diversify its offerings.

LG Chem aims to achieve 30 trillion won in sales and double-digit ratio of operating profit to sales by 2030 to be placed among the global top five chemical companies.

Last month, LG Energy Solutions separated from LG Chem to better prepare for the growing demand in the EV battery sector and increase investments.

The company aims to better counter the drastically changing market and through diverse financing plans to better land procurements and attract investment opportunities to stay ahead of the market.

LG Uplus have been focusing on major growth engines within the smart health, security, education, advertising, media content and data businesses.

The company plans to invest 2.6 trillion won within five years to develop AR, VR and other 5G content through modern computing technologies.

https://www.koreatimes.co.kr/www/tech/2021/01/693_302552.html

 

Category: Korea

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