By Kim Yoo-chul
Ask LG Electronics officials about their boss, Koo Bon-joon, often simply referred to as the "vice chairman," about how he is doing lately, and chances are they will answer, "He is in high spirits."
Not because there are any signs of improvement to the firm's bottom line on the horizon.
As a matter of fact, Koo recently talked grimly about the second quarter.
Few analysts disagree that LG's leading affiliate will continue to suffer for the rest of the year not just for its late start in the smartphone race but the dim economic outlook worldwide.
Then, what keeps the younger brother of the group Chairman Koo Bon-moo elated?
The clue can be found in a newspaper advertisement on a spread page, claiming LG has proved its supremacy in 3D TV together with a graph putting LG ahead of Samsung Electronics and other competitors, copied and blown up.
"Look now at who is the sky and who is the earth," the advertisement says, referring to LG as the sky or the winner and to Samsung as the earth.
The two rivals have been engaged in a raging 3D TV war, trying to steal the thunder from the other for hegemony in what is being called "the next-generation TV norm."
"The vice chairman didn't get involved in the wording in the advertisement," an LG official said. "The domestic marketing chief is responsible for that."
The official said Koo knows that there are still some things left to be done but he seems ready to take the latest victory and feel good about it.
Koo replaced Nam Yong, a hired gun, after a dismal performance. As a member of the founding family, he has been eager to score and let others know about it.
Of course, he wishes for a bigger victory, most likely in a turnaround in the smartphone business, but that appears to be far-fetched at the moment.
Meanwhile, he is trying to keep his team on its toes.
"I myself will directly lead the drive. Immediate dismissal or penalties for wrongdoers will be implemented. We all know that the demise of the U.S.-based Enron was due to irregularities and corruption," Koo said in a recent note to his employees.
"I found there are many irregularities despite repeated requests to tackle the issue years ago. It’s a pity," the CEO said, adding he's been receiving more e-mails from LG employees worldwide concerning corrupt actions within LG via his private account.
"Increasingly, LG Electronics is turning to internal audits to prevent corruption and ensure proper controls are in place to mitigate associated risks," said a top-ranking LG executive by telephone.
"Given the more stringent global legislative environment, LG is revising its existing approach to anti-corruption compliance by tailoring programs to key regulatory requirements, clearly communicating expectations to both employees and third parties, and ensuring effective implementation and an ongoing review of the program," the executive added.
With a pledge to root out irregularities and wrongdoings, Koo is also upbeat about earnings in the remaining year.
"The worst has passed. I don't think LG Electronics' profit will fall further as our mobile and television businesses are getting better, though a meaningful rebound in the second quarter is unlikely," said the CEO.