LG chairman stresses swift execution in AI transformation

LG Group Chairman and LG Corp. CEO Koo Kwang-mo, center, speaks during a meeting with CEOs and other executives of LG Group at LG Leadership Center in Jung District, Seoul, Wednesday. Courtesy of LG Corp.

LG Group Chairman and LG Corp. CEO Koo Kwang-mo stressed the value of swift execution in the group’s artificial intelligence (AI) transformation efforts during a meeting with CEOs and top executives of LG affiliates.

LG Corp. said Thursday that Koo presided over a meeting of top executives involving more than 40 presidents of LG affiliates at LG Leadership Center in Jung District, Seoul, a day earlier. The meeting was aimed at exploring strategies to build solid fundamentals for the future that can withstand external uncertainties, including rising geopolitical risks and the reorganization of global supply chains.

At the meeting, participants agreed on the need for structural innovation to overcome challenges stemming from unpredictable market conditions, saying AI transformation is at the core of future competitiveness and that swift execution will be key to realizing it.

“AI is more than a simple tool to improve efficiency and productivity,” Koo said, comparing it to the invention of the internet. He added that the rise of AI requires LG Group to undergo fundamental changes to prepare for a new era and that its future will depend on how well it understands and responds to this shift.

“The most important value is swift execution,” he said. “Faster execution is more important than perfect planning, and even small initiatives should be carried out quickly in areas where they can create business impact, and we should accumulate and scale up the results. … AI transformation is not a task for a specific organization, but one that CEOs and other leaders must lead from the front.”

Koo’s remarks were seen a call for decisive action and strong execution among LG’s top executives. The executives agreed to accelerate structural innovation by applying AI transformation across the entire business process, from design and production to marketing, with clear goals set by management and a focus on swift execution.

To this end, LG Group used AI from the outset of the top executive meeting. Participants utilized LG’s AI model, EXAONE, during the discussions to analyze the context in real time, extract key keywords and generate summaries.

LG Corp. Chairman of Board Park Jong-su / Courtesy of LG Corp.

Along with AI transformation, LG companies also adopted changes to their governance structure, appointing external directors as board chairmen at its listed affiliates.

LG Corp. held its annual general meeting of shareholders Thursday, appointing external director Park Jong-su as board chairman. Park replaced Koo, who had served as board chairman since 2018, when he became LG Corp. CEO.

Park, a professor at Korea University School of Law, joined LG Corp.’s board as an external director in 2023 and has since served key oversight functions, including auditing, internal transactions, environment, social and governance value. A specialist in accounting and taxation, he served as president of the Korean Academic Society of Taxation in 2022.

The move is interpreted as an effort to strengthen the board’s independence and oversighting role.

In Korea, more than 80 percent of listed companies have their CEOs concurrently serving as board chairmen. While this structure can accelerate the execution of corporate strategies, it has also drawn criticism for weakening the board’s ability to check management. Against this backdrop, Koo’s decision is seen as an effort to strengthen board’s influence so it can enhance management transparency and align governance with global standards.

With LG Corp. appointing Park as board chairman, all 11 listed companies under LG Group, including LG Electronics, LG Display, LG Innotek, LG Chem and LG Energy Solution, now have external directors serving as board chairperson. Among them, three companies — LG Electronics, LG Innotek and LG Chem — have a female board chair.

“As board independence gains importance in enhancing shareholder value, global investors and proxy advisors view having an external director as board chairman as the most independent governance structure,” an LG official said. “We are expanding this transparent governance model across the group, including LG Corp.”

Meanwhile, LG Corp. confirmed dividends of 2,100 won per common share and 2,150 won per preferred share at the board meeting.