Koo Marks First Anniversary as LG chairman
LG Group chairman Koo Kwang-mo celebrates his first anniversary on June 29. During the past one year, LG Group has innovated itself to show different colors under the leadership of the young chairman.
Its innovation is characterized by bold and fast decision-making and pragmatism as seen in examples such as smartphone factory relocation to Vietnam, acquisition of CJ HelloVision and LG CNS share sale. In addition, the innovation is expected to further accelerate down the road with the leadership of the new chairman increasingly stabilized. The innovation is likely to cover the group’s key subsidiaries LG Electronics and LG Display, which have been maintained as they are so far.
The group’s future business direction setting is likely to be led by those who worked at the LG Synergy Team. The team was a key part of the group coordinating the businesses of LG Group subsidiaries and seeking for new opportunities. The group’s late former chairman Koo Bon-moo himself led the team, successfully launching its OLED business and so on.
Former members of the team are currently playing important roles in various LG Group subsidiaries. They have led the group’s business reorganization projects during the past one year, too. For example, Kwon Bong-seok, head of the Mobile Communications (MC) & Home Entertainment (HE) Division of LG Electronics, made the factory relocation decision, earning a positive evaluation about the boldness of the group. LG U+ vice chairman Ha Hyun-hwoi decided to take over CJ HelloVision for 800 billion won.
From now on, M&A and automotive electronics are likely to be the chairman’s test bed. Since he took office, the group has carried out no major M&A activities except for the acquisition of CJ HelloVision, the largest company in the South Korean cable TV market. However, large-scale M&As are likely to follow one after another with the group accelerating business reorganization.
Automotive electronics, in the meantime, is where major subsidiaries such as LG Electronics, LG Display and LG Innotek are concentrating their resources. The annual sales of the Vehicle Component Solution (VS) Division of LG Electronics, which was set up in 2015, rose from 1,832.4 billion won to 4,287.6 billion won from 2015 to 2018. The division posted an operating loss of 119.8 billion won last year but is expected to yield an operating profit this year.