LG chief urges executives to be ambitious against Chinese competition

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LG chief urges executives to be ambitious against Chinese competition

LG chief urges executives to be ambitious against Chinese competition Chairman Koo Kwang-mo leads workshop with 40 LG leaders to discuss long-term strategies for competitiveness

www.chosun.com

LG chief urges executives to be ambitious against Chinese competition​

Chairman Koo Kwang-mo leads workshop with 40 LG leaders to discuss long-term strategies for competitiveness

Published 2024.09.27. 12:08

LG Group Chairman Koo Kwang-mo (center) attends an executive workshop to discuss mid- to long-term business strategies with top executives from LG companies, including LG Chem Vice Chairman Shin Hak-cheol (front left) and LG Vice Chairman Kwon Bong-seok (front right), in Icheon, Gyeonggi Province, on Sept. 25, 2024. /Courtesy of LG

LG Group Chairman Koo Kwang-mo and top executives gathered to address the threat posed by Chinese competitors and discuss strategic countermeasures. Amid fears of a global economic slowdown and stagnating electric vehicle demand, LG’s leadership is prioritizing long-term strategies to maintain competitiveness in key sectors, including home appliances, batteries, and petrochemicals.

At a workshop in Icheon, Gyeonggi Province, on Sept. 25, LG Electronics CEO Cho Joo-wan’s report on the “Chinese threat” was a key discussion point. About 40 top executives attended the meeting, including Koo, CEOs of major subsidiaries, and heads of business divisions.

Cho, who recently attended the IFA global electronics exhibition in Berlin, emphasized that Chinese companies are rapidly advancing in cost competitiveness, supply chain management, technology, and design. During a local press briefing at IFA, he expressed concerns: “Companies like TCL and Hisense have caught up significantly. China is no longer to be underestimated; it should be feared.” He also acknowledged that “LG has been slow” in areas like robotic vacuum cleaners, where Chinese firms have taken the lead.

Chinese companies continue to threaten LG’s core business areas, including home appliances, petrochemicals, batteries, and displays. Executives at the workshop focused on how LG can differentiate itself from Chinese competitors to maintain its edge. Discussions emphasized the need to create unique customer value and that significant change is necessary across most of the group’s businesses, as incremental improvements are insufficient. The executives agreed that higher goals must be set.

Koo urged top executives to set bold goals, saying, “Move beyond convention and aim for the best and the first to shape LG’s future.” He noted that while many doubted white goods, LG targeted 30% innovation growth instead of just a 5% improvement, making it the top brand in global home appliances. He added, “Even amid talks of exiting the battery business, we became the first to mass-produce electric vehicle batteries and secure Korea’s first FDA approval for a new drug,” underscoring the importance of ambitious goals.

LG Group identifies “ABC” (artificial intelligence, bio, cleantech) as its future growth drivers. Executives assessed the potential for synergy and implementation across these sectors. After the discussions, Koo experienced the “Affectionate Intelligence” mobility AI firsthand, which automatically adjusts vehicle interiors based on driving conditions, and explored an AI call service that summarizes conversations and suggests schedules.