Chairman Koo Quadruples Sales
By Kim Yoo-chul
Staff Reporter
LG Group has recorded a four-fold rise in total sales in 15 years since Chairman Koo Bon-moo took the helm in Feb. 23, 1995.
Under his chairmanship, Koo has spearheaded the group's move to foster the company's affiliates in electronics and chemicals. LG Group reported 125 trillion won in total sales in 2009 compared to 30 trillion won in 1994.
Under his tenure, total asset value rose to 79 trillion won from 28 trillion won during the same period.
The number of overseas operations also jumped to 150 from 90 in late 2004.
Now, one of the nation's top conglomerates is planning to expand in the global market in 2010 with the firm belief of an enhanced brand identity and advanced product competitiveness amid the global economic recovery.
"Since 2003, LG Group has been reaped 70 percent of its total sales from overseas. In 2010, LG Group is targeting to get 75 percent out of this year's 135 trillion won sales target," a group spokesman said, Sunday.
"By 2012, LG's brand awareness in key strategic markets will rise over 50 percent, lifting us to become a truly international company."
LG's brand awareness has steadily increased after Koo made the current brand LG by dropping "Lucky Goldstar" right after he took the top job.
The work has paid off ― brand awareness of LG in 65 countries rose 50.8 percent on average by the end of 2009 from 9.4 percent in 1998, the group said in a statement.
LG officials say the so-called "LG Way" pushed by the chairman since 2005 has helped the entire group's affiliates maintain sustainable businesses.
Right after the Asian financial crisis in the late 1990s, LG had to undergo massive restructuring to put more focus on profitable businesses, folding up its semiconductor unit.
In 2003, the group launched a holding company system for greater transparency in management, the first among South Korean conglomerates.
"With the steady pursuit of consumer insight, customer values, responsible management and independence, LG has advanced and constructed a corporate culture that combines humanity and technology," according to the spokesman.
"Now, Koo is leading the group by placing 'Consumer Value Management' as a top priority."
Go Global
For effective global business, the chairman has allowed the CEO of LG Electronics Nam Yong to continue for a second-term.
Nam is pushing the electronics affiliate into becoming a truly international player. Nam brought in foreigners to key decision-making positions such as procurement, marketing and human resources.
Alongside Nam, Koo left all CEOs of the group's key affiliates ― LG Display, LG Innotek and LG Chem ― unchanged in a recent management reshuffle due to their "impressive work" despite last year's global downturn.
"Sustainability should be guaranteed for healthy change. Chairman Koo will put more focus on creativity and independence in corporate structures," another group spokesman said.
With such trust, LG Electronics is planning to sell 140 million mobile phones in 2010, an increase of 20 percent from 2009.
Its TV business is aiming to sell 29 million flat-screen TVs this year ― an increase of 45 percent during the same period.
LG Display has plans to boost its client bases to emerging markets such as India and South America, as well as China, by riding on the turnaround in the global flat-screen sector.
LG Chem, the world's biggest maker of lithium ion batteries, is set on increasingly sales of its eco-friendly batteries to its major auto clients. Meanwhile, the group's chemical unit is increasing the portion of premium chemical products in China.
The trading arm ― LG International ― is jumping into natural resources-related businesses, while planning to expand its infrastructure.
"For 2010, Koo will send the following consistent and clear message to markets and employees ― global, humanity and a strong corporate structure," the spokesman said.