Written by 11:19 AM Tech

“Separate Product and Business Organizations to Achieve AX Results” – LG U+ to Undergo Organizational Restructuring by 2026

[Financial News] LG Uplus announced on the 1st that it has reorganized its organization for 2026 with the goal of expanding the results of the artificial intelligence transition (AX) business and enhancing the competitiveness of its core telecommunications business. This is a strategic move to respond more agilely to changes in the market environment and customer needs, and to maximize product competitiveness by focusing on customer value.

The core of this reorganization is ‘enhancing expertise’ and ‘establishing an organic collaboration system.’ In key business areas, the product and business organizations will be separated to improve expertise, and they plan to transition to a ‘cross-functional’ collaboration system centered around products.

Especially in the core business area of AX, it will be divided into a ‘business organization’ focusing on the business portfolio and a ‘product organization’ responsible for launching differentiated products. Additionally, the development organization that technically supports the AX business will be reorganized into dedicated teams for key core businesses. The development organization under the Chief Technology Officer (CTO) will share business and core goals, aiming to enhance the competitiveness of service development. This will shorten the time for improved services to be delivered to customers.

In the telecommunications core sectors represented by mobile and home, as well as in B2B wired and wireless business areas, structural improvements for ‘enhancing product competitiveness’ have been achieved. To accelerate digital transformation in the mobile business, the digital business and product organizations have been separated, and the home business, represented by home internet and IPTV, has also been divided into business and product functions to improve efficiency. In the B2B sector, new project planning functions for key new businesses such as cloud security have been configured separately to enhance specialization.

There will also be reorganizations to increase the operational stability of wired and wireless network infrastructure, which is the foundation of the competitiveness in the core telecommunications business. Under the ‘NW Division’ that manages network infrastructure, an ‘NW AX Group’ will be newly established to build a leading global network operation system.

In addition, LG Uplus plans to pursue structural changes to secure organizational agility required for structural improvements across its business. To flexibly respond to the rapidly changing business environment, they will streamline the organizational structure and switch to a ‘large team system’ by integrating departments with overlapping roles. They also plan to actively introduce ‘AI work agents’ into internal tasks to reduce simple repetitive work and create an environment where employees can focus on important tasks from the customer’s perspective.

Lee Won-hee, HR Director (Executive Director) of LG Uplus, said, “The 2026 organization reorganization is an important strategic move to achieve visible results in the AX business and solid growth in our core telecommunications business simultaneously. We aim to become a market-leading company based on the capability to push forward business initiatives grounded in product expertise and an organizational culture that collaborates swiftly.”

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