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| Cha Suk-yong, retired CEO of LG Household & Health Care / Korea Times file |
Cha Suk-yong, who led LG Group's cosmetics, health and household products maker LG Household & Health Care (H&H) for 18 years, stepped down from his CEO post, the LG Group affiliate said Thursday.
LG H&H said Lee Jung-ae, senior vice president and head of its beverage business, will become its new CEO. Lee is the first female CEO among the LG Group's affiliates.
In a statement, LG H&H said Cha decided to wrap up his 18-year-long career "in order to pave the way for younger generations," but the CEO reshuffle is being interpreted as the beauty and healthcare company's attempt to take a leap forward again, at a time when the company faces sluggish sales of its beauty products in China.
After taking the CEO post in January 2005, Cha made LG H&H a leader in the business. In 2021, the company posted a solid operating profit of 1.29 trillion won ($971.5 million), but its performance plummeted this year as demand for its cosmetics products in China decreased and raw materials prices soared due to the Russia-Ukraine War. In the third quarter, its sales fell 7 percent year-on-year to 1.87 trillion won while its operating profit fell 44.5 percent to 190.1 billion won.
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| Lee Jung-ae, new CEO of LG Household & Health Care (H&H) / Courtesy of LG H&H |
Among the major conglomerates here, LG Group was the first to carry out a personnel reshuffle of executives this year on Thursday. The country's fourth-largest conglomerate said it focused on "designing the future" of its affiliates as it named 31 new executives in research and development, and 90 percent of its 114 new executives were born after 1970.
"LG's executive reshuffle for 2023 is focused on designing the future by deploying talented professionals with potential and expertise as new executives to lead LG's future," the group said.
"LG has thoroughly chosen new executives from the perspective of future competitiveness, ranging from R&D and customer experience, as well as production, purchase, supply chain management and quality/safety."
To that end, LG Electronics established the Customer eXperience (CX) Center to strengthen research on the customer experience of its products and provide a strategy and roadmap.
By affiliates, Lyu Jae-cheol, vice president and head of the Home Appliance and Air Solution (H&A) Division of LG Electronics, was promoted to president. LG Chem CFO Cha Dong-seok was also promoted to president from vice president.
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