SEOUL, July 14, 2023 — LG Electronics (LG) declared its vision to transform from its current position as a top global home appliance brand to a “smart life solutions company” that can connect to and expand customers’ diverse experiences while driving for global annual revenues of KRW 100 trillion, by 2030.
In a landmark speech at the LG Sciencepark in Seoul, South Korea, William Cho, CEO of LG Electronics, outlined the bold vision built on three growth engines:
1. Pursuing new platform-based service businesses through advancement of business portfoli
2. Accelerating business-to-business (B2B), and
3. Exploring new business areas such as electronics vehicle charging and digital health
From these three growth engines, CEO Cho identified electrification, servitization and digitalization as key inflection points that LG will focus on to achieve rapid mid- to long-term growth.
“LG will continue to pursue its bold vision to transform and leap forward as a smart life solutions company that connects and expands on customers’ spaces and experiences, rather than resting on its current position as the best home appliance brand that provides quality products,” said CEO Cho. “We will establish a brand-new LG by reinventing the way we work and communicate while progressing towards this goal.”
CEO Cho also highlighted on the company’s financial objectives. “We will achieve Triple 7, which encompasses an average growth rate and operating profit of 7 percent or more as well as enterprise value to EBITDA ratio of 7,” said CEO Cho. “With the goal of raising sales from KRW 65 trillion last year to KRW 100 trillion by 2030, we will establish ourselves as a company that is properly recognized by the market and our customers.”
CEO Cho elaborated on how LG will focus on the transition to the platform-based service business model, acceleration of B2B areas and procurement of new growth engines based on competitive edge as three pillars to focus on customer experience. By 2030, the proportion of these three pillars in sales and operating profit is expected to increase to more than 50 percent.
The company plans to invest more than KRW 50 trillion by 2030 for the qualitative growth of the business, including the advancing of the business portfolio led by the three new growth engines. This includes a Research and Development (R&D) investment of more than KRW 25 trillion, facility investment of more than KRW 17 trillion and strategic investment of KRW 7 trillion.
The company is also accelerating the expansion of its B2B business. LG’s deep understanding of its customers, and the know-how to communicate and empathize with them – accumulative from the B2C business, which has seen continuous innovation over the past 65 years – will be fully expanded to commercial, mobility and virtual spaces.
In addition, CEO Cho also highlighted on how LG is accelerating company-wide changes from corporate culture to brand communication at every customer contact point with the ultimate goal of becoming a brand that that warms the hearts of customers and puts smiles on their faces while enabling customers to feel the value and philosophy of Life’s Good. The company is also focused on driving ESG management activities to fulfil its responsibilities as a global corporate citizen.
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About LG Electronics Inc.
LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 74,000. LG’s four companies – Home Appliance & Air Solution, Home Entertainment, Vehicle component Solutions and Business Solutions – combined for global revenue of over KRW 80 trillion in 2022. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, service robots, automotive components and its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LGnewsroom.com for the latest news.
About LG Electronics Singapore Pte Ltd
LG Electronics Singapore Pte Ltd (LG Electronics Singapore) is a fully-owned subsidiary of LG Electronics Inc., the pioneer and market leader of the Korean electronics industry. LG Electronics Singapore operates three business units – Home Entertainment, Mobile Communications and Home Appliance & Air Solution. In recognition of its vision to enrich people’s life with smart technologies and innovative design, LG Electronics Singapore has been recognized with prominent local and international accolades, such as the CNET Asia Editor’s and Readers' Choice Awards, HWM+HardwareZone.com Tech Awards, Red Dot Design, and GfK No. 1 Awards. For more information, please visit www.lg.com/sg.
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