 *Koo Bon-moo (LG) Birth: Feb. 20, 1945, Jinju, South Gyeongsang Province Education: M.A. degree in business management from Cleveland State University Best quote: ``Our next phase of innovation could only be based on the creative destruction of our current achievements.’’ (February, 1996) |
Koo Bon-moo, the 65-year-old chairman of LG Group, provides a steady hand for the conglomerate in good times and bad.
In strengthening the group’s traditional business areas and successfully expanding to new markets such as liquid crystal displays (LCDs) and rechargeable batteries, Koo is credited for fostering LG as an industrial giant that is quick on its feet.
Koo is well known for his ability to relate to his corporate lieutenants and inspire confidence, allowing them the autonomy to push innovations and implement new ideas. His leadership is well illustrated with his latest move on his group’s flagship, LG Electronics.
LG Electronics is also the world’s second-largest maker of televisions behind Samsung and ahead of Sony, but its inability to wow in emerging products like three-dimensional (3D)-enabled and Internet-connected televisions is threatening to become a strain on the brand.
The times are certainly desperate, but Koo hasn’t tired hollering at his employees yet. However, his decision to replace the Nam with his brother, Koo Bon-joon, certainly speaks volume as a corporate trump card.
``Looking at the recent earnings results, it becomes clear that we are struggling in some business areas. However, we should not allow the difficult times to affect us and reduce our confidence,’’ a composed Koo said recently in a meeting of the group’s senior executives.
The younger Koo, whose corporate career includes a stint as the CEO of LG Display and the president of LG Semiconductor, which was later bought by Hynix, has a reputation for bold decision making, a trait that Nam was never accused of having.
Chairman Koo believes that his brother will bring much-needed pace and direction to LG Electronics’ efforts to rebuild itself as a brand, and the priority is to restore the company’s reputation for innovation in its two mina markets _ consumer electronics and mobile phones.
At the center of the plans is light-emitting diode (LED)-related business pushed by LG Innotek, which recently completed the construction of a major manufacturing line in Paju, Gyeonggi Province. LG plans to generate 15 percent of its revenue from green technologies by 2020, and LG Innotek’s performance in LED lighting and components will be crucial for achieving the goal.
It bears further watching whether LG’s LED-related investments will provide early returns, but Koo is not the type of executive who falls vulnerable to snap judgments.
Koo was ridiculed for his consistent support and massive investment on LG Chem’s rechargeable batteries operations, despite that the business was losing 200 billion won a year as recently as 2006.
However, Koo’s persistence is now finally paying off with LG Chem enjoying an early lead in an emerging market spurred by demand from the automotives industry.
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