Jo Seong-jin to lead LG Electronics as sole CEO
Group solidifies Vice Chairman Koo Bon-joon’s roles
By Yoon Sung-won
Jo Seong-jin, LG Electronics CEO
LG Electronics promoted its home appliance and air systems (H&A) business head Jo Seong-jin to a vice chairman position and named him as sole CEO of the company, Thursday, changing the previous corporate management system led by three co-CEOs.
The nation’s second-largest electronics maker stressed that the reshuffle aims at concentrating the company’s business capabilities as it faces difficult business environments.
“We have shifted to a corporate management system led by a single CEO which can encourage prompt decision-making and boost momentum in business operations amid rapid changes and risks in the global markets,” LG Electronics said in a statement.
Jo joined LG Electronics in 1976 and became the head of the H&A business division in 2015. Under his leadership, LG Electronics strengthened its competitiveness in the home appliance business, extending their dominant presence in the washing machine market. He also successfully launched luxury home appliance brand dubbed the “SIGNATURE” series and built-in kitchen appliances brand “SIGNATURE Kitchen Suite,” while establishing footholds for future business items such as the Internet of Things (IoT) and robots, according to the company.
The head of LG Electronics’ Russia business Song Dae-hyun has been promoted to president and the new head of the H&A business division. Song entered the company in 1983. As the head of the Russia business, Song steered the overseas branch with solid profitability even amid tough challenges such as foreign exchange fluctuations and the global economic slowdown, LG Electronics said.
Besides Jo and Song, LG Electronics promoted 56 more high-ranking executives, a big increase compared with last year’s 38. The company’s mobile communications business head Jo Juno, vehicle components (VC) division head Lee Woo-jong, home entertainment business head Kwon Bong-seok and domestic sales head Choi Sang-kyu will remain at their current positions.
The electronics company also unveiled its organization restructuring plan both in the business-to-business (B2B) and business-to-consumer (B2C) sectors.
In particular, it has launched the “smart business unit” integrating the intelligent vehicle initiative unit and the advanced driver assistance system unit in the VC division. It also consolidated the electric powertrain (e-PT) and the vehicle engineering units into the “green business unit. For overseas VC business, it will operate regional sales management centers for North America, Europe and China.
In the B2C sector, LG Electronics merged the refrigerator unit with the kitchen package business units to launch the “kitchen appliance business unit.” The washing machine business unit, which has been in charge of washing machine and vacuum cleaner sales, has been renamed the “living appliance business unit.” The company also established a new unit dedicated to the premium “SIGNATURE” brand products. Jo will lead the new premium business unit by himself, LG Electronics said.
Meanwhile, LG Group said it will expand the role of Vice Chairman Koo Bon-joon, younger brother to Chairman Bon-moo. It said the vice chairman will take extended responsibility as the chief of the group’s new growth business division to oversee strategic planning and executive discussions for future businesses.
“The decision to expand the vice chairman’s roles has been made to support the group affiliates to expedite changes and innovations, helping them boost business competitiveness amid global economic slowdown and macroeconomic uncertainties,” LG Group said. “In particular, the chairman determined that the group needs experience and business capabilities of the vice chairman, who used to work as the CEO at LG Electronics, LG Display and LG International Corp., to effectively make achievements in new growth businesses such as vehicle component and energy solution.”