Seeking Chances amid Crisis
LG Group held an executive seminar on July 5 at the LG Twin Towers building in Yeouido, Seoul. At the seminar, the Group Chairman Koo Bon-moo said, “Recently external elements such as Brexit are intensifying the uncertainty of the management environment and even a change in the order of the global economy is being perceived,” stressing, “All of you have to keep a careful watch for and make a response to its short-term and mid- and long-term effects on the business as a change always brings about opportunities.”
As the Brexit is adding up volatility to the foreign exchange market, major affiliates of the group with higher shares of overseas sales, such as LG Electronics, LG Display, and LG Chem, are moving to strengthen the monitoring on the foreign exchange market, while taking some preemptive actions by setting up business strategies according to each scenario.
Meanwhile, Lee Jeong-dong, professor of the engineering department at the Seoul Nation University (SNU), was invited to the seminar and evaluated the current situations Korean industries and companies are facing, and tried to seek growth solutions under the theme “Creative Accumulation.” Professor Lee published the book Time of Accumulation containing the insights on the future of Korean Inc., after gathering proposals from engineering professors at SNU.
Professor Lee said Korean firms have fast grown so far by rapidly benchmarking industrial models imported from advanced countries, but are still dependent on them in terms of source proprietary technologies and core component materials including new concept products. He also emphasized that in the age of new normal when the trend of long time low growth is prevailing, it is necessary to secure a capability for creating the concept design, an ability to design new products and business models in a creative way.
Lee explained that the creative innovation comes from human resources who have long experienced in the field, and the directors of the LG Production Engineering Research Institute have led the researches by working as long as more than 10 years, providing a good example in terms of the accumulation of high quality empirical knowledge.
The institute, established in 1987 to improve productivity and lead innovation in technology and equipment, has conducted various research and development projects, producing multiple outstanding results such as development of automated production machines, localization of core equipment in the precision machinery field, and miniaturizing and lightening of auto parts over the last 30 years. Last year, it was integrated with the Materials & Devices Advanced Research Institute into the LG Electronics Material and Production Engineering Research Institute.