On October 23, South Korean media reported that LG Group officially began holding business briefings to evaluate this year's performance and formulate plans for next year. Following the briefing, organizational restructuring and executive personnel changes are expected to take place in mid-November.
LG Group Chairman Koo Kwang-mo is scheduled to review business reports from major subsidiaries, including LG Electronics, LG Display, LG Chem, LG Energy Solutions, and LG U+, starting on the 23rd. The briefings are expected to focus on countermeasures against U.S. tariffs and the aggressiveness of Chinese competitors, as well as AI technology innovation plans.
Chairman Koo already expressed a sense of crisis at last month's board meeting, pointing out that "Chinese competitors are investing three to four times more capital and human resources than we do." Furthermore, Chairman Koo emphasized to management, "While we recognize the urgency of strengthening our structural competitiveness, many challenges remain," suggesting that the company will undertake fundamental reforms to improve its performance.
Following the briefings, the company cannot rule out the possibility of withdrawing from or selling off unprofitable businesses or businesses facing deteriorating industry conditions. Based on his principle of "selection and concentration," Chairman Koo has already withdrawn from LG Electronics' electric vehicle charger business and sold LG Display's LCD plant in Guangzhou, China, as well as LG Chem's water treatment solutions business. Instead, the group is actively investing in new growth areas such as AI, robotics, auto parts, biotechnology, and HVAC.
According to foreign media reports, personnel changes for senior management and group-level positions are scheduled to take place after the business briefing. Following LG Household & Health Care's premature CEO change last month, many observers inside and outside the group believe that this year's personnel changes may focus on innovation and restructuring, as opposed to last year's emphasis on stability.
