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By News Reporter
LG Electronics CEO William Cho, in an exclusive interview with Bloomberg, discussed the company’s business strategy, growth areas, and the competitiveness of LG’s AI. Cho highlighted the focus on expanding B2B, subscription services, and its webOS-based advertising and content business to drive growth.
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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
Celebrated annually on June 5, World Environment Day presents a vital opportunity to raise awareness about environmental issues and take action to protect our planet. This year, LG offices around the world participated in tree planting initiatives, engaging with local communities to create a better environment for all.
LG Singapore kicked off its activities this June with a tree planting event that brought together employees and environmental enthusiasts under the
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More than seventy employees gathered at Camp Road to plant 50 trees in the cosy Tanglin area. The seven species planted included the dwarf powder puff tree, batoko plum tree, pink kopsia tree, white chempaka tree, frangipani tree, spicate eugenia tree and the river tarenna tree. These species play a vital role in enhancing Singapore’s ecosystem and natural landscape.
Employees eagerly rolled up their sleeves to dig plots and transfer saplings to their new homes, working together with a shared purpose to contribute to the local community. Welfare packs were given to the participants to ensure that everyone stayed hydrated during the planting session.
LG’s tree planting efforts contribute to broader environmental goals, such as combating climate change and preserving biodiversity. By taking action at the local level, LG Singapore demonstrates its commitment to worldwide sustainability efforts and a greener future for generations to come.
Joining in on the action, LG Argentina hosted a tree planting activity as part of the company’s voluntary corporate social responsibility (CSR) activities. For the second consecutive year, LG Argentina participated in the Plantarse Urban Forests Program, leading local environmental initiatives. The partnership has already seen more than 750 trees planted, representing an estimated CO2 reduction of 145,000 kilos.
is an organization that promotes sustainability and cultural change through a combination of approaches, themes and funding sources to address social and environmental issues.
Thirty-five LG volunteers ventured to an ecological reserve to recreate the area’s original ecosystem. This activity is one of many environmental and CSR initiatives that LG conducts in collaboration with numerous non-governmental organizations such as Plantarse and .
LG Argentina also took part in native forest regeneration efforts in Pampa de Achala, Córdoba, planting 125 trees. Dominated by the endemic Tabaquillo species, these high altitude forests required participants to trek up the mountain with tools, plants and irrigation systems.
Last but not least, LG Vietnam planted trees at a local university to show the company’s dedication to ‘Life’s Good’ and making the planet a better place for all.
Aligned with the company’s global environmental strategy, LG Vietnam planted 50 saplings at Hutech University’s Hitech Park Campus, with the participation of LG employees and students. Each tree will provide shade and cleaner air for students, symbolizing a promise to foster a greener and healthier environment for the younger generation to develop. This meaningful activity not only embodies the ‘Life’s Good’ commitment, but it also helps to enhance the engagament of the company and the youth.
LG offices worldwide remain steadfast in their commitment to positively impacting the environment through a variety of activities. Stay tuned to the to learn more about LG’s diverse activities around the world and how the company’s employees contribute to a better future.
Contributed by LG Singapore, LG Argentina and LG Vietnam
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By News Reporter
Hanok, traditional Korean houses, are renowned for their aesthetic beauty construction and harmonious integration with nature. Inspired by this distinctive architectural form – prized for its energy efficiency, natural ventilation and lighting – LG Spain has constructed an AI-powered home named ‘Another Hanok.’ This innovative abode showcases LG’s latest technological and design advancements and highlights some of the ecologically-focused projects undertaken as part of LG Spain’s ‘Smart Green’ movement.
During the Another Hanok opening ceremony, LG reaffirmed its commitment to supporting the global climate response through its ongoing ESG initiatives and sustainable product solutions. The event was attended by 80 guests, including the president of LG Spain, local and Korean government officials and representatives from various partner companies. Since establishing the Smart Green movement in 2017, LG Spain has developed product solutions aimed at reducing environmental harm while encouraging and fostering community engagement.
Efficient Innovations for Sustainable Dwellings
Self-sufficient, connected and sustainably powered, Another Hanok embraces and embodies LG’s Smart Green philosophy. The house produces, stores, saves and shares clean energy, achieving 100 percent energy independence* through the use of LG’s state-of-the-art technologies as a way to reduce its environmental impact.
Leading up to the entrance of Another Hanok is a beautifully designed pathway that inspires feelings of peace and tranquility while reminding visitors of the pressing environmental issues facing our planet. As visitors approach the house, they encounter a variety of interactive displays and installations that spotlight the challenges of reducing carbon emissions and the urgent need for companies and consumers to adopt responsible practices.
Inside, visitors can explore several spaces, each focused on different aspects of sustainable living. From energy-efficient appliances to advanced HVAC systems, Another Hanok demonstrates how LG’s cutting-edge technologies and solutions can help create a net-zero-energy home. The seamless installation of the LG Therma V R290 Monobloc heat pump contributes to the house’s efficient use of power, while ensuring the reliable heating and cooling for visitor comfort. Conveniently, the solution’s energy consumption can be monitored through the ThinQ Energy Service. Additionally, surplus energy produced by the solar panels installed on the roof of Another Hanok is stored in LG’s energy storage system.
Expanding the Smart Green Movement
Launched in 2017, LG Spain’s Smart Green movement is an initiative that continues to help regenerate local environments and ecosystems. The movement’s goals include planting 48 million trees (Smart Green Trees), repopulating 48 million Iberian bees to ensure the pollination of countless endemic plant species (Smart Green Bees), and reviving the health of the Mediterranean Sea (Smart Green Seas).
The ‘Another Life’ Experience
Another Hanok is a part of LG’s ‘Another Life’ series, a collection of offline experience spaces that provide customers with unique opportunities to interact with LG’s lifestyle-enhancing products. Each of these spaces offers a welcoming atmosphere along with compelling displays and exhibits that promote sustainability and responsible technological innovation. Beginning in South Korea in 2022, the series has since expanded internationally with the addition of sites such as ‘Another Saigon’ in Vietnam.
LG views Another Hanok as a new, more-engaging kind of B2B showroom, where its European B2B clients can see first-hand the company’s strong commitment to achieving carbon neutrality. In the spirit of its Life’s Good philosophy, LG will continue to innovate and inspire, leveraging its technology leadership to help usher in a new era of sustainability.
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* Average yearly photovoltaic (PV) power generation at Another Hanok is 22,030 kWh while average monthly power consumption is 16,870kWh. Actual power generation and power usage may vary.
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By News Reporter
With an unwavering policy of open innovation with startups around the world, LG has been fostering businesses outside its own to better prepare for the future. These big-picture efforts are centered on LG NOVA, the company’s North American Innovation Center in California’s Silicon Valley – known worldwide as the hub of startups.
Established in 2021, LG NOVA aspires to form a collaborative ecosystem that accelerates the growth of new ideas by working closely with startups on new businesses that can enhance LG’s future readiness.
LG NOVA aligns with LG CEO William Cho’s growth strategy of 3B – Build, Buy and Borrow – to strengthen the company’s future growth engine by embracing talent and technology through exchanges with various innovative companies.
Let’s look at how this essential innovation center works with its partners to bring about groundbreaking advancements. Furthermore, we’ll explore how it is establishing a community dedicated to creating and nuturing businesses that contribute positively to the future of our world.
Discovering Global Startups to Break New Ground in Healthcare
LG NOVA’s “Mission for the Future” program, now in its fourth year, is designed to discover and nurture innovative global startups seeking to improve people’s quality of life in a greener, smarter and more-connected future.
In its first three years, LG NOVA received over 4,000 submissions from innovative global startups, with more than 100 companies selected to explore joint business opportunities with LG.
This year is an especially important one, as this month, LG NOVA unveiled its first new venture, “Primefocus Health,” with Darren Sabo, previously head of commercialization of new health ventures at LG NOVA, at the helm as the CEO. Sabo has a wealth of experience in new business development, making him the perfect candidate to take this digital health venture forward.
(From left to right) Darren Sabo, CEO of Primefocus Health, and Sokwoo Rhee, Head of LG NOVA and SVP of Innovation for LG Electronics
Primefocus Health is committed to easing the journey from hospital to home for patients. It leverages cutting-edge technologies and novel healthcare treatments through a platform designed to offer patients access to a personalized care plan. This plan, curated by their healthcare provider, aids in the recovery from chronic diseases like diabetes and high blood pressure.
This healthcare platform also offers providers access to patient data and information, enabling them to assist, guide, communicate and intervene as necessary during the patient’s home recovery. The platform aims to facilitate remote patient monitoring, providing real-time biometric information that can be integrated into the provider’s electronic health record systems.
LG NOVA is collaborating with more healthcare startups through the Mission for the Future program, including
link hidden, please login to view, which integrates immersive VR/AR technology to provide comprehensive therapeutic care for remote medical treatment, and , a sensor-based technology platform that utilizes the cameras in personal devices to virtually capture health readings to enhance diagnosis and treatment effectiveness.
Another example that demonstrates LG NOVA’s focus on digital health is , a virtual care platform to treat polychronic mental and physical illness that was selected during the 2021 Mission for the Future challenge. This solution leverages AI to harness clinical, genetic, gut microbiome, food and behavioral signals to target the root cause of illness.
LG NOVA plans to continuously launch new businesses through ventures in LG’s future growth areas including digital health, clean tech and AI.
Promoting Symbiotic Growth in West Virginia
This year, LG NOVA is joining hands with West Virginia to revitalize the local economy by fostering future businesses while bringing instances of win-win cooperations to this U.S. state and the dynamic Appalachian region.
The announcement introduced the NOVA West Virginia Investment Fund, which aims to drive USD 700 million into the region over five years through investment.
The decision to invest in West Virginia, which is over 2,000 miles away from LG NOVA in Silicon Valley, stems from the REINVENT LG initiative. Under the leadership of CEO Cho, LG has been carrying out various initiatives to redefine everything from its business structure and brand to the way it works. What makes West Virginia the perfect partner is its similar desire to reinvent itself to revitalize the local economy.
Primefocus Health also plans to work closely in the Mountain State.
Increasing Funds to Foster Potential Startups
LG NOVA is also significantly expanding the scale of its investment and speeding up its investments for the future. In 2023, it signed an agreement with Clearbrook, a global venture investment company, to expand the global startup development fund – NOVA Prime Fund.
Through collaborating with external experts to identify the latest technology trends, discover more innovative companies and offer comprehensive support, the company hopes to accelerate the growth of startups and discover opportunities for collaborations across various business areas.
A Talent Acquisition Outpost that Competes with Big Tech
LG NOVA also serves as an outpost to secure the best talent in Silicon Valley, an area dominated by big tech companies. By accurately reading future industrial trends and executing effectively, LG NOVA will be able to move one step ahead of the competition. At the same time, their challenging and brave attitude toward innovation will give a boost to the overall organizational culture.
Dr. Sokwoo Rhee, head of LG NOVA, is the perfect example of this. After founding an IoT startup, Rhee went on to serve in the U.S. government, as assistant director for Cyber-Physical Systems at the U.S. National Institute of Standards and Technology and Presidential Innovation Fellow at the White House.
(From left to right) Joshua Di Frances, the leader of LG NOVA’s incubation office, and Darren Sabo, CEO of Primefocus Health
Joshua Di Frances, the leader of LG NOVA’s incubation office, is another key executive with experience across various areas including medicine, business and the public sector. Di Frances studied neuroscience at Boston University, an MBA from MIT and built an impressive career at CVS Health and the White House. Since joining LG NOVA in 2021, he is working to build new businesses in digital health, cleantech and immersive/AI future technology with his team of entrepreneurs-in-residence.
And, with the recent global boom in startups among AI engineering students, LG NOVA has been hosting the ‘Innovation Festival’ every fall to provide a space where innovative companies and investors can exchange information and expand.
LG NOVA will continue to seek out innovation from outside LG. To learn more about LG NOVA and its efforts to build, nurture and grow future-defining innovations, visit .
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