LG to Focus on New Businesses That Will Bring Profits to Them

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LG Group is going to intensively examine its major affiliates’ next-generation strategy businesses such as electronic equipment components, energy, B2B and others. 

LG Group is going to discuss about business strategies that will become profits after 3 to 4 years and look for a method to secure synergy and strategies from a group’s perspective.

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According to a financial industry on the 30th, Chairman Koo Bon-moo of LG Group is going to hold a briefing session for medium and long-term business strategies along with CEOs and department heads of major affiliates.

Starting with LG Care and LG Uplus in next week, LG Group along with CEOs and major executives of major affiliates will examine current direction of business management, strategies on future businesses, and direction of R&D.

Because Chairman Koo has been emphasizing innovation and pioneer, they are going to push for strategies that are separated from current businesses.

Major topics that go through LG Group’s major affiliates are B2B, vehicle components, and energy. Each affiliate will discuss strategies with LG Group and establish its own future direction. As medium and long-term strategies that were reporter many years ago have become current major businesses, strategies that are being reporter right now are receiving much attention. 

Actually LG Electronics’ VC (Vehicle Components) Business Headquarters, which is being actively promoted by LG Group, and ultra-premium brand called LG Signature that was introduced this year were reported by LG Electronics many years ago at a briefing session and have become success.

LG Electronics, which is LG Group’s major affiliate, will report strategies per business headquarters. Major point of this briefing session is to report on future businesses that will take forms after 3 to 4 years. 

Major topics for VC Business Headquarters will be future technologies such as self-driving technology and expansion of customers. It is important to discuss with other affiliates such as LG Chemicals and LG Display within a group to create synergy. HE (Home Entertainment) Business Headquarters is going to report new technologies such as VR and differentiated and continuous pioneering strategies through OLED that is currently leading global premium TV markets. 

H&A (Home and Appliance) Business Headquarters is predicting that enforcement of leadership and premium strategies will become the center of B2B business.

LG Electronics joined hands with N-screen service business called EveryonTV and have started ‘Channel Plus’ that allows one to watch 50 real-time channels for free with just an internet connection.

LG Chemicals is going to report new driving forces such as electric vehicles’ batteries, water treatment, and bio that are going to become next-generation’s businesses. It is going to look for a way to secure next-generation material technology that can significantly increase level of battery performance and examine strategies for water treatment and bio businesses at the same time.

LG Uplus is going to report on future technologies such as IoT and 5G. LG Uplus, which has increased its competitive edge by preliminarily responding to LTE, is going to look for ways to expand its dominance more in future telecommunication technologies such as 5G. Also according to its vision to become the top business in IoT generation, it is going to discuss about strategies to expand its dominance from IoST(Internet of Small Things) business to future businesses. 

Not only is LG CNS going to look for way to improve system unification business, which is its current major business, but it is also going to look for ways to improve new businesses such as energy, digital marketing, big data, IoT and others. It is also going to look for strategies that will allow itself to secure competitive edge in businesses such as new renewable energy and others that it is focusing on.

It is predicted that LG Display will focus on strategies to secure future applicable technologies such as flexible, foldable, and transparent display by utilizing strengths of OLED while also strengthening competitive edge that leads OLED field even more.

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“This briefing session will be a place where methods of creating synergy within a group can be looked and implemented.” said a representative of LG Group’s affiliate. “Based on information from this briefing session, CEO of each affiliate will implement management with responsibilities and authorities.”

Staff Reporter Kwon, Kunho | wingh1@etnews.com

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