CEO outlines growth engines and financial objectives to drive transformation
LG Electronics (LG) has announced its vision to transition from a top global home appliance brand to a “smart life solutions company” that connects and enhances customers’ diverse experiences while aiming to achieve global annual revenues of KRW 100 trillion by 2030.
During a significant speech at the LG Sciencepark in Seoul, CEO William Cho unveiled the bold vision built on three growth engines: pursuing new platform-based service businesses, accelerating business-to-business (B2B) initiatives, and exploring new business areas such as electric vehicle charging and digital health. Electrification, servitude, and digitalization were identified as key inflection points that LG will prioritize to achieve rapid mid- to long-term growth.
CEO Cho emphasized LG’s commitment to transforming and leaping forward as a smart life solutions company that expands customers’ experiences and spaces, moving beyond its current position as a leading provider of quality home appliances. “We will establish a brand-new LG by reinventing the way we work and communicate toward this goal,” stated CEO Cho.
Financial objectives were also highlighted, with CEO Cho outlining the company’s aim to achieve “Triple 7,” which entails an average growth rate and operating profit of 7 per cent or more, as well as an enterprise value to EBITDA ratio of 7. The goal is to increase sales from KRW 65 trillion in the previous year to KRW 100 trillion by 2030, solidifying LG’s market position and gaining recognition from customers.
Cho emphasized that LG would focus on three pillars to enhance the customer experience: transitioning to a platform-based service business model, accelerating B2B areas, and acquiring new growth engines based on competitive advantages. By 2030, it is expected that these three pillars will account for more than 50 per cent of sales and operating profit.
To support qualitative business growth, the company plans to invest over KRW 50 trillion by 2030. This investment will include over KRW 25 trillion in research and development, over KRW 17 trillion in facility investment, and KRW 7 trillion in strategic investment.
The expansion of LG’s B2B business is being accelerated, leveraging the company’s deep understanding of customers and its ability to communicate and empathize with them, which has been accumulated over the past 65 years through continuous innovation in the B2C sector. LG aims to extend its expertise to commercial, mobility, and virtual spaces.
CEO Cho highlighted LG’s company-wide changes, from corporate culture to brand communication, with the goal of becoming a brand that warms the hearts of customers and brings smiles to their faces, while enabling customers to experience the value and philosophy of “Life’s Good.” The company is also actively engaged in ESG (environmental, social, and governance) management activities to fulfill its responsibilities as a global corporate citizen.