LG Group chief seeks global expansion

LG Group Chairman Koo Kwang-mo Korea Times file

By Lee Kyung-min

LG Group Chairman Koo Kwang-mo will visit manufacturing plants and business facilities operated by major affiliates overseas soon, according to industry watchers, Tuesday.

The business community says the visit scheduled for later this month or early next month will accelerate the group's global expansion, a drive Koo is confident to undertake due to his years of experience in innovating corporate culture and organizational structures.

He is expected to go to Poland to visit the manufacturing plants of LG Energy Solution in Wroclaw and LG Electronics in Mlawa. Also on the agenda is promoting Busan's bid to host the 2030 World Expo.

Whether the chairman's role will expand to securing key raw materials for batteries remains to be seen. Also important is establishing closer cooperation with prospective buyer countries.

“The young chairman has kept a low profile most of the time, leaving key management decisions to CEOs of the group's affiliates,” an industry watcher said. “Expectations are high that he will begin to make great strides in strengthening overseas business relationships the same way other heads of conglomerates do.”

Under the leadership of the 44-year-old, the ages of key executives at LG Corp., its holding firm, have been lowered mainly to 40s.

The firm closed its mobile business unit last year, and has since reoriented its business portfolio, including the acquisition of a global automotive electronics firm.

The sweeping move led to strong increases in sales, assets and operating profit.

Data from Korea Ratings showed the combined operating profit of LG Group's affiliates came to 13.7 trillion won ($9.9 billion) last year, tripling the 4.5 trillion won of 2019, shortly before the onset of the COVID-19 pandemic. Sales rose to 173.9 trillion won, up from 155.9 trillion won in the same period. The strong performance was underpinned largely by the spike in demand for electronic appliances and the recovery of the display market.