LG Electronics has confirmed a series of organisational changes and executive appointments to accelerate the company’s mid- to long-term strategy, ‘Future Vision 2030’, by enhancing inter-organisational synergy and innovating its business portfolio. 

The restructuring focuses on regrouping the business’ operation units to maximise the potential of existing businesses, strengthen platform-based service operations, accelerate B2B initiatives and secure new growth in promising sectors.

Key changes in business structure 

LG will establish a new company to bolster the growth of the heating, ventilation and air conditioning (HVAC) business. The overseas sales & marketing company will now function as the overseas B2B control tower.

In addition, display-based operations including TVs, monitors, and signage will be integrated to foster synergies and expand platform-based service businesses. New growth engines will be strategically relocated to companies with greater business relevance, ensuring more stable support and creating synergies across business areas.  

All four companies will now incorporate Solution in their names, reflecting the company’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. 

Restructuring of companies 

LG has restructured its four companies into the Home Appliance Solution (HS) company, the Media Entertainment Solution (MS) company, the Vehicle Solution (VS) company, and the Eco Solution (ES) company.

Home Appliance Solution company supports LG vision

The H&A company will be renamed HS company to align with LG’s vision of ‘Zero Labour Home, Makes Quality Time’. To support this vision, LG will move the Platform Business Centre – responsible for the planning, development and operation of LG ThinQ – directly under HS company.

This realignment aims to establish HS company as a leader in AI solutions across diverse spaces, including homes, commercial areas and vehicles, effectively addressing customer needs outside traditional home settings. HS company will also incorporate the Robot Business Division to integrate core robot technologies into its home robot solutions.

Media Entertainment Solution company for ID and IT

The HE company will change its name to MS company to align with LG’s goal of becoming a media and entertainment platform powerhouse. It will integrate the Information Display business and Information Technology business from the BS Company with its TV business to create synergies in hardware and platform operations.

The MS company will accelerate the expansion of platform-based service business areas by broadening the application of webOS, which was primarily used in smart TVs, to monitors, signage and in-vehicle infotainment systems. webOS will evolve into an integrated content and services platform for both indoor and outdoor use, enhancing competitiveness through synergy and improved business structure. 

Vehicle Solution company for automotive sector

The VS company will clarify its role by changing its name from Vehicle Component Solutions company to Vehicle Solution company, emphasising its commitment to providing innovative solutions across the entire automotive ecosystem.

New Eco Solution company for HVAC

The ES company has been newly established. The HVAC business, previously part of the H&A company and a significant contributor to LG’s B2B growth, will now operate as a standalone entity under the ES company. Head of the LG Air Solution Business Division, Lee Jae-sung, will lead the ES company, ensuring continuity in the HVAC business and maintaining its strategic direction. 

Given the project-based nature of the HVAC business and specific characteristics of the market and its customers, LG has determined that operating it as an independent company will maximise future competitiveness and growth potential.

Additionally, the ES company will assume responsibility for the electric vehicle charging business and play a pivotal role in driving B2B growth within the clean tech sector.

To enhance the competitiveness of overseas B2B operations, LG will establish the B2B Business Capability Enhancement Division under the overseas sales & marketing company. 

The Chief Strategy Office (CSO), acting as the company’s future strategy control tower, will also oversee AI acceleration and respond to global AI developments. The Chief Digital Office, previously responsible for digital transformation, will be reorganised into the DX Centre and transferred directly under the CSO. The DX Centre will focus on driving business performance through generative AI technologies, led by Cho Jung-bum. 

Jung Pil-won, currently leading the TV overseas sales & marketing group, has been appointed as the MEA region representative, recognising his extensive experience in overseas sales management and his deep understanding of the Middle Eastern and African markets.

Kim Jung-ho, Kim Yoo-seon and Choi Jung-won, who head the subsidiaries in Saudi Arabia, Poland and Malaysia respectively, have been promoted to executive positions in acknowledgment of their contributions to business growth. 

All appointments are effective 1 December 2024, with promotions taking effect on 1 January 2025.