SEOUL, South Korea — LG Electronics has announced a series of organizational changes and executive appointments following their approval by the company’s board of directors.
The restructuring aims to accelerate the company’s mid- to long-term strategy, “Future Vision 2030,” by enhancing inter-organizational synergy and innovating its business portfolio, the company said in a press release.
The restructuring regroups LG’s business operation units to maximize the potential of existing businesses, strengthen service operations, accelerate B2B initiatives, and secure growth in promising sectors, the company said.
To spearhead this transformation, LG has appointed skilled individuals with exceptional expertise, emphasizing the enhancement of the company’s long-term competitiveness through the development of high-performing organizations, the press release said
A new company will be established to bolster the growth of LG’s HVAC business, a crucial component of LG’s B2B acceleration strategy. The Overseas Sales & Marketing Co. will now function as the overseas B2B control tower. Additionally, display-based operations — including TVs, monitors, and signage — will be integrated to foster synergies and expand platform-based service businesses. New growth engines will be strategically relocated to companies with greater business relevance.
LG has restructured its four companies into the Home Appliance Solution (HS) Co., the Media Entertainment Solution (MS) Co., the Vehicle Solution (VS) Co., and the Eco Solution (ES) Co.
The H&A Co. will be renamed HS Co. to align with its vision of “Zero Labor Home, Makes Quality Time.” To support this vision, LG will move the Platform Business Center — responsible for the planning, development and operation of LG ThinQ — to the HS Co. This realignment aims to establish HS Co. as a leader in artificial intelligence (AI) solutions across diverse spaces, the company said. Lyu Jae-cheol will continue to lead HS Co.
The HE Co. will change its name to MS Co. to align with its goal of becoming a media and entertainment powerhouse. It will integrate the Information Display and Information Technology businesses from the BS Co. with its television business to create synergies in hardware and platform operations, the company said. Park Hyoung-sei will continue to lead the MS Co.
The Vehicle Component Solutions Co. will change its name to Vehicle Solution Co. Eun Seok-hyun will continue to lead the company.
The ES Co. has been newly established. The HVAC business, previously part of the H&A Co. and a significant contributor to LG’s B2B growth, will now operate as a stand-alone entity with the name ES Co. Lee Jae-sung, the current head of the Air Solution Business Division, will lead the ES Co.
Given the project-based nature of the HVAC business and the specific characteristics of the market and its customers, LG has determined that operating it as an independent company will maximize competitiveness and growth potential, LG’s press release said.
Additionally, the ES Co. will assume responsibility for the electric vehicle-charging business from the BS Co.
Meanwhile, LG will establish the B2B Business Capability Enhancement Division under the Overseas Sales & Marketing Co.
The Chief Strategy Office (CSO), acting as LG’s future strategy control tower, will also oversee AI acceleration and respond to global AI developments. The Chief Digital Office, previously responsible for digital transformation, will be reorganized into the DX Center. The DX Center will focus on driving business performance through generative AI technologies and will be led by Cho Jung-bum.
The executive appointments emphasize the selection of diverse talents with proven expertise in sales, services, and research and development, the company said. Jung Pil-won, currently leading the TV Overseas Sales & Marketing Group, has been appointed representative for the Middle East and Africa region. Additionally, Kim Jung-ho, Kim Yoo-seon, and Choi Jung-won, who head the subsidiaries in Saudi Arabia, Poland, and Malaysia, respectively, are being promoted to executive positions.
