LG Chairman Koo Kwang-mo Marks 8th Anniversary, Launches AI Transformation Strategy

Koo Kwang-mo, Chairman of LG Group, inspects the production line at LG Electronics' Noida factory in New Delhi, India, last March. [Photo=LG]

Koo Kwang-mo, Chairman of LG Group, is set to celebrate his eighth anniversary in office on June 29. This year marks a pivotal moment as the company embarks on a comprehensive "One LG" strategy, leveraging the capabilities of all its affiliates to drive a transformation in artificial intelligence (AI).

According to industry reports on June 28, the combined revenue of 11 major listed affiliates of LG Group exceeded 190 trillion won last year, representing a 37.7% increase from 138 trillion won in 2019. Operating profit also surged from 4.63 trillion won to 6.18 trillion won, reflecting a 33.5% growth during the same period.

Analysts suggest that the company has successfully replaced non-core sectors with new growth engines, a result of a rigorous "selection and concentration" strategy that involved streamlining operations in mobile and solar energy sectors.

Currently, LG Electronics is focusing on high-efficiency heating, ventilation, and air conditioning (HVAC) solutions, while LG Display is advancing its OLED technology, and LG Innotek is enhancing its semiconductor substrates (FC-BGA). All affiliates are concentrating on essential "back-end industries" crucial for building AI infrastructure. Additionally, the LG AI Research Institute and LG CNS, a digital transformation specialist, are leading efforts in generative AI and enterprise AI services, effectively combining hardware capabilities with software solutions to establish a robust AI ecosystem.

Koo has also highlighted the importance of the "ABC" (AI, Bio, Clean Tech) framework as a future growth pillar, with notable advancements in the bio and clean tech sectors. In the bio field, LG is allocating 35% of its research and development resources to life sciences, pushing forward with new drug development. The acquisition of U.S.-based oncology firm Aveo Pharmaceuticals is accelerating LG's entry into the global oncology market.

In clean tech, LG has proactively established local production bases for energy storage systems (ESS) in North America and has timely powered up its lithium iron phosphate (LFP) battery lineup. This has led to significant supply contracts with major global companies, including Tesla, driving tangible revenue growth.

Koo's management style has evolved, moving away from a previously reserved leadership approach to actively engaging in global operations. He has been directly overseeing the company's transformation, including a recent meeting with NVIDIA CEO Jensen Huang during his visit to South Korea, as well as leading a series of executive meetings and large-scale operational discussions to advance LG's AI strategy.

Recently, executives from LG's major affiliates visited NVIDIA's headquarters in Silicon Valley to discuss comprehensive next-generation AI collaboration strategies. This indicates that Koo's vision for expanding the AI ecosystem is evolving beyond one-time events into a broad partnership framework.

An industry insider noted, "Until last year, the focus was on strengthening the internal structure for business transformation. Starting this year, LG is set to embark on a significant expansion of its global AI territory, marking a turning point for the company to become a key partner in the global AI value chain."

* This article has been translated by AI.