LG chairman stresses departure from past success formula

LG Group Chairman Koo Kwang-mo / Courtesy of LG Group

LG Group Chairman Koo Kwang-mo delivered his New Year’s message on Monday, stressing the need for prioritization and focus as the group faces a pivotal moment in shaping its future.

In a video message sent to 250,000 LG Group employees across the world, Koo said the paradigm of technology and rules of competition are rapidly changing, while customer expectations continue to rise. To live up to the expectations, he said, the group must move beyond previous formulas for success and make a leap through new forms of innovation.

“Innovation is not only about improving the lives of today’s customers but also about creating value that future customers will need,” Koo said. “This would require changes in the group’s thinking and behavior, with prioritization and focus serving as the starting point.”

He noted that LG must first “prioritize a core value that truly resonates with customers,” adding that “only by clearly defining a non-negotiable core value can the group set the direction for innovation and unite its efforts.”

Koo continued, urging LG employees to push themselves to a level that others consider impossible to achieve that value, stressing that relentless concentration will create “an experience our customers will find truly different and deliver exceptional value that raises the bar.”

Koo’s message came as key LG units continue to move toward artificial intelligence (AI) transformation. During a recent executive meeting, new LG Electronics CEO Lyu Jae-cheol stressed the importance of accelerating the company’s AI transformation, while LG Energy Solution also plans to upgrade its AI transformation team as a regular body. LG Display has also recently upgraded its AI transformation team by creating new executive positions.

Koo has emphasized prioritization and focus as his key managing philosophy since taking the helm of the conglomerate in 2018. Since then, the group has been streamlining its noncore businesses, exiting areas such as solar panels, fuel cells and mobile devices at LG Electronics, lighting OLED at LG Display and polarizing film production at LG Chem.

“Today we find ourselves at an inflection point where a new future is unfolding,” Koo said. “Shaping that future is both our responsibility and an opportunity. So let’s prioritize what will bring smiles to our customers 10 years from now, and focus on our actions to make them a reality.”