On 25 November 2024, LG Electronics announced a major organisational restructuring to drive its mid- to long-term strategy, Future Vision 2030. The restructuring involves not only major personnel appointments at the top of the company, but also a profound integration and reorganisation of business units, with the aim of further enhancing LG’s competitiveness in the global market by improving inter-organisational synergies, innovating business portfolios, and accelerating the layout of the B2B sector.
Unveiling of four solution companies
The core of LG Electronics‘ reorganisation is to subdivide its business into four solution companies, namely Home Appliance Solutions, Media Entertainment Solutions, Vehicle Solutions and Eco Solutions. The core of the reorganisation is to subdivide its business into four solution companies, namely ‘Home Appliance Solutions Company’, ‘Media & Entertainment Solutions Company’, ‘Vehicle Solutions Company’ and ‘Eco Solutions Company’. This restructuring not only reflects LG’s strategic vision in product and service innovation, but also demonstrates the company’s commitment to creating a more synergistic operating model to achieve long-term sustainable growth.
- Home Appliance Solutions Company (HASC)
The Home Appliance Solutions Company, formerly known as the Home Appliance and Air Solutions Company, will focus more on enhancing service capabilities in the home, commercial space, and vehicle scenarios through intelligent platforms and AI technology. The reorganisation integrates the LG ThinQ platform business into the Home Appliance Solutions Company, making it a leader in the application of AI technology in the home and commercial space. Home Robotics will also be separated from Business Solutions to enhance the integration of smart devices in the home, and Lyu Jae-cheol will continue to lead the division to drive Home Appliance Solutions toward the vision of ‘Zero-Chore Home for Quality Time.’ - Media Entertainment Solutions Company
LG has renamed the former Home Entertainment Company to Media Entertainment Solutions Company to further strengthen its leadership in media and entertainment platforms. The reorganisation brings together the information display, information technology and TV businesses into a more synergistic operating system that promotes the deeper integration of hardware and platform services. The company will make webOS a universal integrated content and service platform for indoor and outdoor use by expanding the application scope of the webOS platform not only to smart TVs, but also to commercial displays, in-vehicle infotainment systems, and other areas. Under the continued leadership of Park Hyoung-sei, the company will further accelerate the expansion of its platform-based service business. - Vehicle Solutions Company (VSC)
Vehicle Solutions Company will continue to focus on providing innovative components and system solutions for the global automotive industry. The company’s strong technology development capabilities and integrated solutions are helping the automotive industry to transform to smart and green. Under the continued leadership of Eun Seok-hyun, Vehicle Solutions Company will further consolidate its technological leadership in the field of smart and electric vehicles. - Eco Solutions Company
The newly established Eco Solutions Company will be responsible for the Heating, Ventilation and Air Conditioning (HVAC) business, an area that LG sees as an important pillar for the growth of its B2B business. Formerly part of H&A, the HVAC business will be operated independently after this reorganisation to enhance its market competitiveness and growth potential. In addition, Eco Solutions will take over the electric vehicle charging business and drive B2B growth in the clean technology sector, a business area in which LG aims to become a global leader in total air solutions through its strategic positioning. lee Jae-sung will lead the company to ensure its strategic direction and sustainability for future growth.
Strengthening B2B business and AI-driven transformation
The reorganisation also places special emphasis on the deepening of the B2B sector. In order to enhance the competitiveness of its overseas B2B business, LG will establish a ‘B2B Business Capability Enhancement Unit’ to further expand its business in the international market, especially in emerging markets such as the Middle East and Africa, etc. LG intends to maximise the growth potential of its B2B business by focusing its resources, integrating its technologies, and deepening its efforts in the market.
In addition, LG will strengthen its investment in artificial intelligence (AI), with the Chief Strategy Office continuing to be responsible for overall strategy development and focusing on accelerating the adoption and development of AI technology. The Chief Digital Office, which was previously responsible for digital transformation, will be reorganised into the Digital Transformation Centre, which will be directly under the Chief Strategy Office and will focus on driving the company’s business performance through generative AI. The centre will be led by Cho Jung-bum to further strengthen LG’s adaptability and competitiveness in the global AI industry trend.
Top appointments and global strategy
The reorganisation has been accompanied by a series of top-level appointments, with LG placing particular emphasis on the selection of a diverse range of personnel with extensive experience in the areas of sales, service and research and development. For example, Jung Pil-won has been appointed as the representative for the Middle East and Africa region, where his experience in overseas sales management will drive LG’s business in these regions. In addition, Kim Jung-ho, Kim Yoo-seon, and Choi Jung-won have been promoted to executive director in charge of the operations of the subsidiaries in Saudi Arabia, Poland, and Malaysia, respectively, reflecting LG’s focus on and support for its global business.
Conclusion
This organisational restructuring of LG Electronics is not only a strategic layout, but also lays a solid foundation for the realisation of its future vision 2030. Through refined business integration and clear market positioning, LG is gradually building a more efficient and synergistic operating platform and continuing to leverage its strengths in technological innovation and business expansion in the global market. With the establishment of the four solution companies, LG will usher in more innovation and growth opportunities in the areas of home appliances, media and entertainment, vehicle solutions and eco-technology in the future, and continue to lead the industry in change and technological advancement.
