CEO William Cho Discusses Strategic Growth With Bloomberg: Insights on LG’s Future Vision 2030
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By News Reporter
Companies to Jointly Develop Total Solutions for Virtual Production and XR Studios
SEOUL, Sep. 9, 2024 — LG Electronics (LG) announces it has acquired a stake in
link hidden, please login to view (Mo-Sys), a market leading developer of virtual production solutions and camera robotics. The strategic seed investment and partnership will expand LG’s capabilities in the virtual production and broadcasting technology segments, enabling it to deliver a more comprehensive lineup of sophisticated hardware- and software-based solutions. Formerly the exclusive province of the movie industry, virtual production studios are becoming increasingly popular with TV broadcasters, and with corporations and educational institutions seeking to create their own content in house. Employing a wide array of advanced technologies, including large-scale LED screens, camera tracking, LED controllers and media servers, virtual production stages have brought a new dimension – and a raft of new possibilities – to the art of visual storytelling.
Renowned for its industry-leading display technology, LG has already established itself in this growing segment, providing its Micro LED and LED screens for both virtual reality (VR) studios and extended reality (XR) stages. Through its newly-signed strategic partnership with Mo-Sys, LG will be able to offer a fuller range of solutions for virtual production and XR studios. As part of the agreement, the two companies will be able to seamlessly support customers who choose to combine LG’s LED displays and controllers with Mo-Sys’s XR products and systems to create a total solution for XR.
“We’re excited by this new partnership, and by the unique value we’ll be able to deliver to customers through combining LG’s mastery of display technology with Mo-Sys’s expertise in virtual production solutions,” said Paik Ki-mun, senior vice president and head of the Information Display business unit of LG Business Solutions Company. “LG will continue to pursue collaboration with partners to strengthen its capabilities as a provider of B2B solutions and innovative experiences.”
Michael Geissler, CEO of Mo-Sys Engineering, commented, “We are delighted to have LG’s support as we continue to innovate in the field of next-generation virtual production technology. Their investment will enable us to enhance our R&D efforts, drive sustainability, and create more efficient production solutions.”
LG virtual production solutions will be on show at the International Broadcasting Convention (IBC) 2024 in Amsterdam, the Netherlands (September 13-16). For more information, visit .
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By News Reporter
Driving Business Portfolio Innovation to Maximize the Potential of Key Business Areas
and Advance B2B, Platform-Based and Emerging Ventures
SEOUL, Aug. 21, 2024 — LG Electronics (LG) is rapidly evolving into a “Smart Life Solution Company” by leveraging its decades of customer insight, manufacturing expertise and technological prowess as a leader in home appliances. As part of its mid- to long-term strategy, “Future Vision 2030,” LG is committed to ongoing transformation and growth.
On August 21, LG hosted an investor forum at LG Sciencepark in Seoul, bringing together domestic and international investors and analysts. During the event, CEO William Cho outlined the company’s progress and strategic direction since the announcement of Future Vision 2030 last year, emphasizing key achievements. The forum was also streamed live on
link hidden, please login to view. In addition to CEO William Cho, the event was attended by CFO Kim Chang-tae, CSO Lee Sam-soo and other top executives responsible for key business areas such as heating, ventilation and air conditioning (HVAC), webOS content & services and subscription business. The event aimed to communicate the progress and plans of LG’s mid- to long-term strategy directly to the market, ensuring greater transparency.
Following the announcement of the 2030 Future Vision and the shareholders’ meeting, LG continues to engage with the market and stakeholders through direct communication from the CEO and key business leaders, as demonstrated in this investor forum.
Under the Future Vision 2030 plan, LG aims to become a “Smart Life Solution Company” by connecting and enhancing customer experiences across various living spaces, including homes, commercial environments, mobility and virtual platforms. To achieve this, the company plans to accelerate the transformation of its business portfolio towards a more future-oriented model. The goal is to achieve the “Triple Seven” targets: a 7 percent average growth rate, 7 percent operating profit and an enterprise multiple (EV/EBITDA) of 7.
At the event, LG shared its interim financial progress under Future Vision 2030, revealing an 8 percent increase in revenue, a 6 percent operating profit and a fourfold growth in EV/EBITDA compared to the previous year, based on the first half of this year’s business performance (excluding LG Innotek).
“Over the past year, we have been steadily laying the foundation for achieving our future vision, and we take pride in creating ‘structural changes’ and ‘sustainable outcomes’ in various areas,” said CEO Cho. “With strong confidence and a sense of responsibility, we will continue to advance towards our goals.”
Four Strategic Directions for Business Portfolio Innovation
CEO Cho detailed LG’s approach to business portfolio innovation, focusing on four key directions: maximizing the full potential of existing key businesses, expanding platform-based service models, accelerating the growth of B2B and fostering New-to-LGE businesses.
The first direction of maximizing the full potential of current businesses involves a strategy to overcome the limitations of mature core businesses, such as home appliances and TVs. This includes integrating subscription services into its home appliance offerings and expanding direct-to-consumer (D2C) sales channels, providing customers with more choices and enhanced experiences.
CEO Cho explained that these efforts are leading to steady growth and profit generation in core businesses, which serve as cash cows for the company. Despite a double-digit decline in the Korean home appliance market, LG’s domestic appliance sales are on the rise, driven by the creation of new demand through subscription services. In addition, overseas home appliance sales have grown more than 1.5 times faster than the market average over the past three years, driven by expanded product and price lines and D2C sales.
Second, expanding platform-based service models focuses on leveraging the hundreds of millions of LG products sold worldwide as a platform to generate revenue from content, advertising and services. A prime example is LG Home Entertainment Company’s TV business, which aims to accelerate the webOS advertising and content business with the goal of transforming the company into a media and entertainment platform powerhouse. Since 2018, the annual growth rate of the webOS platform-based advertising and content business has reached 64 percent.
In terms of accelerating the growth of B2B businesses, LG is achieving significant results in areas such as vehicle components, HVAC and smart factories. These advancements are closely aligned with market inflection points like digitalization and electrification. LG aims to increase the B2B share of its total revenue to over 45 percent by 2030. The B2B share, which was 27 percent in 2021, has already risen to 35 percent in the first half of this year.
LG’s vehicle component solutions business has secured an order backlog exceeding KRW 100 trillion (USD 74 billion), with sales of high-value products like digital cockpits growing rapidly. The company is also expanding its global production footprint to support this growth. In the HVAC sector, LG leads the high-efficiency market with its advanced inverter and heat pump technologies, and it is actively targeting the cooling systems market for AI data centers, where demand is surging. LG also has plans to expand its smart factory business into industries with rising factory automation needs, such as semiconductors, pharmaceuticals, biotechnology and food & beverages.
The company continues to invest in promising new business areas that will serve as the foundation for future growth. In the commercial robotics sector, LG is focusing on securing AI-driven, software-defined robotics capabilities. For the electric vehicle charging business, LG is collaborating with leading global partners to seize business opportunities.
Portfolio Innovation Yields Emerging Unicorn Ventures
LG also highlighted the success and growth potential of key businesses that have become core engines of the company’s future growth, showcasing significant results from its portfolio innovation.
“Inspired by the term ‘unicorn’ used to describe ventures valued at over KRW 1 trillion (USD 740 million) in the market, we refer to new business models generating annual sales of over KRW 1 trillion (USD 740 million) as ‘unicorn businesses,’” said CEO Cho. “Our home appliance subscription service surpassed KRW 1 trillion (USD 740 million) in annual sales last year, securing its status as a ‘unicorn business.’ Additionally, several seed businesses, which are expected to become the next unicorns in the near future, are accelerating their growth.”
Home Appliance Subscription Business Achieves Unicorn Status
LG is pioneering a paradigm shift in the home appliance business by combining services with its home appliances through a subscription model. Unlike traditional product-centric models that generate one-time sales, the subscription model maintains ongoing customer relationships, offering optimized care services post-purchase, thereby generating continuous revenue.
Last year, the subscription business achieved KRW 1.134 trillion (approximately USD 840 million) in annual revenue, marking a 33 percent growth over the previous year and securing its place as a unicorn business. This growth is accelerating, with revenue expected to rise by nearly 60 percent this year to exceed KRW 1.8 trillion (USD 1.3 billion).
The rapid growth of LG’s home appliance subscription business is driven by its ability to meet diverse customer needs. Customers can lower their initial purchase burden and maintain their appliances in top condition with expert care services for the desired duration, with free services provided during the subscription period. Customer responses highlight the high value of the subscription business, with its share of LG’s domestic home appliance sales rising from 15 percent last year to over 20 percent this year.
webOS-Based Advertising & Content Business Set to Become the Next Unicorn
LG’s webOS-based advertising and content business leverages millions of devices worldwide as a platform to generate additional revenue streams. This year, revenue is expected to exceed KRW 1 trillion (USD 740 million), a fourfold increase compared to 2021. To sustain this rapid growth, LG is focusing on expanding its customer base, diversifying revenue models and strengthening business capabilities.
In platform businesses, the more devices that use the platform, the larger the business scale becomes. LG has sold approximately 220 million smart TVs over the past decade. In addition, LG licenses its webOS to external companies lacking their own operating systems, with non-LG brands having sold over 10 million webOS TVs. The webOS platform is also expanding beyond TVs to include automotive infotainment and smart appliances, with the company securing leading global OEMs as clients for its in-vehicle infotainment systems.
LG provides a variety of content via webOS, operating revenue models based on advertising and services. A prime example is LG Channels, a free, ad-supported streaming service offering over 3,800 channels in 29 countries. LG plans to diversify its services into high-growth areas such as gaming, personalized shopping and Transactional Video On Demand.
To bolster its webOS platform capabilities, LG plans to invest over KRW 1 trillion (USD 740 million) by 2027. The company will continue collaborating with more than 4,000 global content partners and expand tailored advertising solutions through its data analytics subsidiary, Alphonso.
Chiller Business Targets AI Data Center Cooling Market: On Track to Become a Unicorn in Three Years
LG’s HVAC business offers a broad portfolio, ranging from residential air conditioners to commercial systems for large buildings, schools, public institutions and industrial facilities. This is one of LG’s fastest-growing core businesses, driven by market trends like decarbonization and electrification.
The chiller business, which provides cooling solutions for large buildings, has seen new opportunities as global tech giants increase demand for data centers amid the AI boom. Over the past three years, LG’s chiller business has achieved an average annual growth rate of over 15 percent, with overseas sales more than doubling during the same period.
LG plans to leverage its extensive experience in supplying chillers to power plants, data centers and other facilities, along with its high-efficiency core technologies, to actively target the data center cooling market. In addition, LG is preparing to commercialize new solutions, such as liquid immersion cooling, which are gaining traction in the market.
“By 2030, 50 Percent of Total Sales and 75 Percent of Operating Profit Will Come from B2B, Platform-Based and New Businesses”
To achieve its mid- to long-term goals outlined in Future Vision 2030, LG will consistently drive business portfolio innovation. The company aims to generate 50 percent of total sales and 75 percent of operating profit from three key focus areas: expanding platform-based services, accelerating the growth of B2B and nurturing New-to-LGE businesses.
“These goals are rapidly becoming a reality,” said CEO Cho. “We will ensure that LG’s new value proposition is recognized by all stakeholders, securing sustainable growth and profitability over the long term.”
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* Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate for the six-month period of the year 2024 — KRW 1,349.55 per USD.
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By News Reporter
In business, meaningful growth can’t happen without innovation. It’s essential if your organization is to evolve and thrive, and if you’re serious about adding value to people’s daily lives.
With a thirst to drive innovation, and a wealth of knowledge in the area of IoT, I set out to establish and grow my own startup. I’m happy to say I succeeded in this endeavor. However, with the business model being rather narrow – a continuous cycle of making products and then selling them – there were limitations to what I could do.
After making the decision to sell my company, I went on to serve as the Presidential Innovation Fellow for Cyber-Physical Systems (CPS), a program run by the White House Office of Science and Technology Policy. It was a valuable and enlightening experience. There, I had the chance to work with leading tech companies to further develop and execute plans for industrial IoT and global smart cities. During my seven years in the U.S. federal government, I realized that there are limits to what governments can do with regard to building smart ecosystems. In the end, private companies are the ones bringing the ideas and concepts of smart solutions and businesses to fruition.
This was when I was first approached by LG Electronics. The company wanted to create a new organization dedicated to the discovery of future businesses. LG offered me this amazing opportunity to head up a team they were in the process of putting together.
I thought deeply about the prospect of joining LG. While the company is universally recognized as a strong player in the consumer electronics field, looking in from the outside, it seemed to lack what some might call, a certain ‘disruptive innovation.’ However, I was intrigued by its determination and desire to uncover future businesses and was confident that the company possessed the agility necessary to change and ‘disrupt.’
Personally, I believe that if there are ten great ideas on the table, seven or eight of them will fail to develop into successful businesses. While many people view this way of thinking about business creation as just plain crazy, LG CEO William Cho is, thankfully, not among them.
At LG NOVA, an initiative I am grateful to lead, our mission is to establish a community for nurturing, growing and creating new businesses in new market areas for LG. Early in the LG NOVA journey, we realized that entering new businesses – or new business areas – is difficult if you’re relying solely on your internal capabilities.
If LG wants to create new home appliances, it is in a good position to do this internally because it is already a global leader in consumer electronics, with all the necessary expertise and experience at its disposal. LG NOVA’s mandate is to explore entirely new and different concepts, not currently in LG’s wheelhouse. Although there are thousands of engineers and experts working in LG’s R&D centers, their expertise is in products and areas of business that LG is already in. This is why the LG executive team resolved to look outside of LG.
Our goal is to explore new business avenues that would, ultimately, help contribute to the advancement of LG Electronics. Startups, by the nature of their business model and ability to be at the ground-level of market needs, are leading the forefront of innovation. However, startups will not partner with just any firm that approaches them. This is why we needed to show that LG, as a company, has the commitment and capability to go far beyond home appliances and TVs. This is where LG NOVA comes in.
To establish ourselves in the market, we came up with the idea of hosting a grand challenge. In September 2021, we announced the launch of
link hidden, please login to view, an annual, global competition for startups where we could identify innovative technologies and business ideas for a better tomorrow. The participating startups were tasked with developing and presenting technology-based solutions for improving daily life, our communities and the planet. The tech areas we asked them to focus on included clean tech, healthcare and future tech/AI. To give you an idea of how it works, imagine there is a startup that creates sensors for use in healthcare devices. They might pitch a scenario or concept where their sensors are deployed in TVs to enable innovative new services. Our own business experts, or entrepreneurs in residence (EIRs), would then work with the startup to assess the feasibility of their idea. In many cases, EIRs would work closely with the startup to develop a relevant, but entirely different business idea that could be exciting to both parties. If the idea was deemed to be viable, and in alignment with LG NOVA’s goals and values, a partnership agreement might result and LG NOVA would launch a new business based on the collaboration. This is how a small, fledgling company can set its unique concept on the fast track to becoming a commercialized product.
Through this process, and by combining our capacity with the startup’s capacity, we can create a joint business where LG has as much ‘skin in the game’ as the startup. And at every step along the way, LG NOVA will be right there with them, from meeting with investors to introducing and marketing the ‘final product’ to customers. Through LG NOVA, we can create new products and services that can make a positive difference – and do it at a much larger scale than a startup could manage, if it were to go it alone.
I am proud to be a part of LG and to help guide LG NOVA into exciting new territories where boundless innovation awaits discovery. And I can say, without exaggeration, that I truly love this role. Ultimately, I’m striving for Innovation for Impact – which also happens to be the motto and the philosophy of LG NOVA. While there are many, many ways to make a profit, we have committed ourselves to achieving profitability in a meaningful way, and to leaving a lasting, positive impact on the world.
By Dr. Sokwoo Rhee, executive vice president of Innovation for LG Electronics, head of LG NOVA
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By News Reporter
Company to Share Its Unique Perspective on the Transition to SDVs,
Demonstrate How LG Software Solutions Address Key Challenges for Future Mobility
SEOUL, May 17, 2024 — LG Electronics (LG), a mobility sector technology leader, will be sharing its latest insights and innovations at AutoTech: Detroit, taking place in Detroit, Michigan, U.S.A., from June 5-6. Organized by the Informa Tech Automotive Group, AutoTech: Detroit is one of the automotive industry’s premier events, typically drawing over 3,000 industry leaders and experts. This year’s show will explore the latest advancements in automotive technology, including the areas of software-defined vehicles (SDVs), connectivity, electrification and design.
LG’s AutoTech: Detroit conference session, titled BEYOND THE ROAD: NAVIGATING THE SDV TRANSITION, will focus on the present and future of SDVs. The session will explore three pivotal challenges facing the industry: the technical complexities of developing a unified vehicle operating system, how to transform user experiences through the realization of a “Living Space on Wheels,” and the need to adapt current business models for sustained innovation and value creation.
The company’s presentation will seek to highlight the critical role of LG AlphaWare in the evolution of the SDV. A comprehensive suite of software solutions, LG AlphaWare empowers mobility providers to collaborate and innovate, supporting them to overcome diverse technical challenges while bringing home-like comfort and connectivity to the in-vehicle environment.
LG’s session is scheduled to take place at 12:15-12:40 (EST) on June 5 at the Suburban Collection Showplace in Novi, Michigan. For more information about LG’s session at AutoTech: Detroit 2024, visit
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By News Reporter
AI as Key Driver for Future Growth and Customer Experience Innovation
SEOUL, May 13, 2024 — LG Electronics’ (LG) CEO, William Cho, has embarked on a strategic business trip to the tech-rich western United States, a hotspot for global tech titans and dynamic AI dialogues. Throughout his week-long visit, Cho will focus on key tasks such as attracting top-tier AI talent, communicating the company’s vision and strategy to global investors and attending the influential MS CEO Summit. These endeavors are integral to LG’s comprehensive strategy to accelerate the incorporation of AI into all its business sectors.
AI as a Crucial Catalyst for Future Growth and Customer Experience Innovation
Throughout his trip, Cho aims to secure top-notch expertise in the AI field, an area that has recently surfaced as a critical turning point in the industry. He plans to leverage this as a springboard for transforming LG’s future business portfolio and revolutionizing the customer experience.
Annually, LG introduces approximately 100 million products to the market. Given a product lifespan of seven years, it’s estimated that nearly 700 million LG products are currently in use worldwide. Furthermore, the usage data gained from customers interacting with these devices exceeds 700 billion hours. Cho anticipates this enormous pool of usage data will help accelerate LG’s AI progression and the 700 million products will function not just as customer touchpoints but also as service platforms.
“AI, Cloud, and Big Data are new opportunities for LG”
Cho commenced his itinerary by hosting a tech conference in North America on the 11th in Cupertino, California. This program is aimed at drawing in top-notch talent from abroad. Key participants included LG’s AI Lab management team and executives from LG’s various businesses including Park Hyoung-sei, president of the LG Home Entertainment Company; Eun Seok-hyun, president of LG Vehicle component Solutions Company; Dr. Kim Byoung-hoon, CTO and executive vice president; Kim Weon-bum, CHO and executive vice president; and Dr. Sokwoo Rhee, head of LG’s North America Innovation Center.
LG extended invitations to about 50 AI experts currently working in large tech firms and startups in the Bay Area, as well as doctoral researchers from renowned universities in North America. The conference focused on discussions about the company’s vision, R&D strategy and the future trajectory of AI technology development.
Cho expressed, “In the face of transformative shifts such as electrification, servitization and digitalization sweeping across diverse industries, the application of AI, cloud and big data is paving the way for novel approaches and opportunities.” He further elaborated, “These emerging opportunities represent a new potential frontier for us, given our extensive accumulation of core technologies and expertise.”
He also provided detailed insights into LG’s AI vision of ‘Affectionate Intelligence’, which was unveiled earlier this year at CES 2024. Cho emphasized that “AI should fundamentally be used to care for and empathize with customers, provide tangible benefits and improve the customer experience,” a sentiment that deeply resonated with the attendees.
Following this, he announced, “LG is transcending its status from a global leader in the home appliance and consumer electronics to transform into a ‘Smart Life Solution Company’ that expands and interconnects various customer spaces and experiences.” He added, “I envision us collaborating to reinvent dreams as we undertake bold ventures, fueled by optimism for a brighter future and a better life.”
At the event, CTO Kim Byung-hoon spoke on the subjects of ‘Paradigm Shift’ and ‘LG’s Innovation Roadmap for the Future’, and vice president Han Eun-jung of AI Lab discussed ‘Daily Life with AI’. Professors from the University of Southern California and New York University were also invited to present on generative AI and robotics technology. A panel discussion on the theme of ‘Evolution of AI’ also attracted significant interest from the attendees.
Transition from a Leading Home Appliance Brand to a Smart Life Solution Company
Cho’s second agenda includes hosting a non-deal roadshow (NDR) on May 13, where he will interact with key executives from globally influential investment firms based in San Francisco. His strategy aims to depict LG’s transformation to a comprehensive ‘Smart Life Solution Company’. This transition is anchored in broadening the company’s business portfolio, which includes accelerating B2B business in areas such as EV components, HVAC, built-in appliances’ and signage solutions. The expansion of platform-based services like webOS, and venturing into new areas for LG such as robotics and EV charging, are also integral to this transformation plan.
In particular, Cho plans to highlight how LG is proactively engaging in the development and application of AI in its business operations. He aims to stress that creating tangible customer touchpoints is more crucial than merely having superior AI to provide authentic value and experience to customers.
In this regard, LG’s customer touchpoints, secured through its 700 million devices spanning diverse spaces from homes to vehicles and commercial areas, present a significant advantage that is unmatched by other global companies. LG’s goal is to realize Affectionate Intelligence in our daily lives by leveraging extensive real-time life data and expertise orchestrating devices and services to accelerate AI development using its devices as platforms.
Securing Global AI Allies and Discovering New Business Opportunities at the MS CEO Summit
Cho is also scheduled to attend the MS CEO Summit, a private, invitation-only event taking place in Seattle, where Microsoft’s headquarters is located, for three days starting from May 14. This summit serves as a platform for CEOs and representatives of globally leading companies to discuss and exchange ideas on various topics, including the economic and business environment, as well as industry trends.
LG is diligently working to establish world-class AI capabilities, guided by a ‘3B strategy’ that focuses on Building internal capabilities or Borrowing and Buying external resources. Given LG’s extensive global customer touchpoints and its possession of a vast amount of multi-faceted data and customer insights, the opportunities for future collaborations with globally influential tech companies are expected to become increasingly diverse.
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