**”Focused Offensive on Emerging Markets This Year… Responding to Geo-economic Changes”**
**Exploring Success Strategy of ‘Selection and Concentration’ in New Ventures**
**Promoting ‘Open General Meeting’… Online Broadcast and Simultaneous Interpretation Provided**
On the 25th, LG Electronics CEO Cho Joo-wan declared the opening of the 23rd regular general meeting of shareholders held at the LG Twin Towers in Yeouido, Seoul.
Cho Joo-wan, CEO of LG Electronics, aims to accelerate growth through a focused offensive in emerging markets like India and the Middle East. At the 23rd regular general meeting of shareholders held in Yeouido, Seoul, he emphasized, “From this year, we will add ‘regional’ strategic axis to the existing growth strategy to accelerate growth in promising regions with high growth potential.”
LG Electronics outlined its business operation direction this year utilizing the growth strategy of tapping into the potential of the ‘Global South,’ represented by Asia, Latin America, and the Middle East & Africa. This aims at securing growth opportunities in high-potential areas in response to geo-economic changes like the US Trump administration’s tariff policies and US-China conflict.
In Asia, efforts will be concentrated in India, the world’s most populous nation. LG Electronics is expanding its business domain in India by strengthening its production, service, and R&D infrastructure, utilizing the local business infrastructure established over the past 28 years. As the number one company in market share for refrigerators, washing machines, air conditioners, and TVs in India, it plans to become a ‘national brand’ widely beloved by local Indian customers. Additionally, aggressive growth endeavors will be made in the Middle East, where numerous IT companies are congregating, and Asia, where AI data centers are expanding.
In new businesses, Cho CEO stated they would enhance success probability through ‘selection and concentration.’ “We will pursue ‘selection and concentration’ type new ventures, focusing on areas expandable based on the company’s technological know-how and the ability to erect barriers against competitors,” he said.
By business division, the HS (Home Appliance Solution) division aims to expand into B2B areas like built-in appliances and components, leveraging world-class competitive strength in home appliances. Overseas expansion will be aggressive for the subscription business, which combines products and services, with a strong drive towards the AI home solution business.
Additionally, the MS (Media Entertainment Solution) division will reinforce synergies overseeing display-based businesses like TVs, signage, and monitors, expanding into media entertainment platform business centered around webOS. The VS (Vehicle Solution) division will focus on transitioning to SDV (Software Defined Vehicle) while concentrating on robust, profit-based business operations.
The newly established ES (Eco Solution) division this year will accelerate growth in household and commercial air conditioning sectors, concentrating resources on securing HVAC business opportunities in industrial areas like AI data centers and nuclear power plants, emerging as a core axis in the enterprise B2B business.
CEO Cho stated, “Last year’s robust management performance, including record sales, largely involved significant contributions from ‘qualitative growth’ in areas like B2B, appliance subscription, and webOS platform businesses.” He added, “We plan to increase the proportion of qualitative growth areas from 42% last year to over 50% by 2030.” Efforts will be focused on B2B, characterized by low demand and price volatility and customer relationship-based expandability, while advancing Non-HW business in recurring models that continuously generate profits, thereby ensuring structural business soundness.
The shareholder meeting approved financial statements, amendments to the articles of association, director appointments, audit committee member appointments, and the director remuneration limit plan as initially proposed. Directors Kwon Bong-seok, Cho Joo-won, and Ryu Chung-yeol were re-elected, and Kang Sung-chun, a professor at Seoul National University Business School (Vice President of the Korean Academy of Management), was newly appointed as an outside director.
This year’s general meeting was organized under the ‘Open General Meeting’ concept. It featured online streaming, and considering the interest of overseas investors, English simultaneous interpretation service was also introduced.
In addition to CEO Cho Joo-wan, key executives such as Ryu Jae-chul, head of the HS division, Park Hyung-se, head of the MS division, Eun Seok-hyun, head of the VS division, Lee Jae-sung, head of the ES division, Kim Chang-tae, CFO, Lee Sam-soo, CSO, and Kim Byung-hoon, CTO, attended the meeting. This reflects the management’s commitment to proactive communication with shareholders and solidifying accountable management intentions.