LG Electronics (LG) has announced a series of strategic organisational changes and executive appointments, aimed at propelling its long-term strategy, Future Vision 2030.
The restructuring, approved by the board of directors, is designed to enhance inter-organisational synergy, innovate its business portfolio, and accelerate growth in key business areas, and strengthen platform-based service operations, accelerate B2B initiatives.
These organisational changes are set to take effect on 1 December 2024, with promotions coming into effect on January 1, 2025. The restructuring underscores LG’s commitment to creating high-performing organisations and delivering innovative solutions to meet the evolving needs of its global customers.
LG’s spokesperson said: “This restructuring is a step towards achieving our vision of becoming a Smart Life Solution provider. It will help us meet evolving market demands while positioning us for sustainable growth.”
To drive this transformation, LG has appointed skilled individuals with exceptional expertise. The company is placing emphasis on enhancing its long-term competitiveness through the development of high-performing organisations.
Key changes in the business structure include the establishment of a new company focused on the growth of the heating, ventilation, and air conditioning (HVAC) business. This move is part of LG’s broader B2B acceleration strategy.
The Overseas Sales & Marketing Company will now serve as the overseas B2B control tower. Furthermore, the integration of display-based operations, including TVs, monitors, and signage, will foster synergies and expand platform-based services.
The restructuring includes the creation of four distinct companies: Home Appliance Solution (HS) Company, Media Entertainment Solution (MS) Company, Vehicle Solution (VS) Company, and Eco Solution (ES) Company. This new structure redefines their roles and identities within LG.
All four reorganised companies will now incorporate “Solution” in their names, marking LG’s evolution into a Smart Life Solution provider that connects and enhances customer experiences across various environments, including homes, commercial spaces, mobility, and virtual platforms.
Under the leadership of Park Hyoung-sei, the MS Company will also accelerate the expansion of platform-based services, broadening the application of webOS. Originally used in smart TVs, webOS will now extend to monitors, signage, and in-vehicle infotainment systems, evolving into an integrated content and services platform for both indoor and outdoor use.
The VS Company, previously known as the Vehicle Component Solutions Company, will focus on providing innovative solutions across the entire automotive ecosystem. Eun Seok-hyun will continue to lead the VS Company.
The new ES Company has been established to oversee LG’s HVAC business, which was previously part of the H&A Company. As a significant contributor to LG’s B2B growth, the HVAC business will now operate as an independent entity under the ES Company.
Lee Jae-sung, head of the Air Solution Business Division, will lead the ES Company, ensuring continuity in the HVAC business and maintaining its strategic direction.
The ES Company will also take on responsibility for the electric vehicle charging business, which was previously part of the BS Company. This move reflects LG’s focus on driving B2B growth within the clean tech sector, which is seen as one of the company’s key future growth engines.
To enhance the competitiveness of its overseas B2B operations, LG will establish the B2B Business Capability Enhancement Division under the Overseas Sales & Marketing Company.
The Chief Strategy Office (CSO) will act as LG’s future strategy control tower and will oversee AI acceleration, ensuring the company remains at the forefront of global AI developments.
Meanwhile, the Chief Digital Office, which was previously responsible for digital transformation, will now be reorganised into the DX Center and transferred directly under the CSO. The DX Center will focus on driving business performance through generative AI technologies and will be led by Cho Jung-bum.
Executive appointments reflect the company’s strategy to select diverse talents with proven expertise in sales, services, and research and development.
Jung Pil-won, who has extensive experience in overseas sales management and a deep understanding of the Middle Eastern and African markets, has been appointed as the MEA Region Representative.
Additionally, Kim Jung-ho, Kim Yoo-seon, and Choi Jung-won, who lead subsidiaries in Saudi Arabia, Poland, and Malaysia, respectively, have been promoted to executive positions in recognition of their significant contributions to business growth. - TradeArabia News Service
