LG Group's Chairman Koo Kwang-mo raised concerns about the intensive investment strategies employed by Chinese competitors, stating that LG companies must continue working to enhance their core competitive capabilities.
According to the group's announcement, Koo delivered these comments during a strategic meeting with LG Group chief executives at the company's training facility in Icheon, Gyeonggi Province, the previous day.
More than 40 senior leaders from LG Electronics, LG Display, LG Chem, LG Energy Solution, LG Uplus and additional subsidiaries participated in the meeting, including CEOs and chief digital officers responsible for managing artificial intelligence transformation initiatives within their respective divisions.
Attendees exchanged perspectives on the growing complexity of the business landscape and engaged in comprehensive discussions about methods to expedite AI transformation as a strategy for addressing current challenges, according to LG Group.
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Koo has consistently advocated for measures to improve the group's comprehensive competitiveness during executive meetings held in March and June, employing language such as "survival" and "golden time."
“Chinese competitors are making capital and human resource investments three to four times greater than ours,” Koo says.
“Based on our shared view of the need to enhance fundamental competitiveness, we have been working on strategic selection and concentration in business, R&D for distinctive competitiveness and structural improvements in profitability, but we still have much to do.”
In April, LG Electronics discontinued its electric vehicle charging operations, redirecting resources toward its HVAC business and artificial intelligence initiatives. LG Chem similarly terminated its water filtration business in May.
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Additionally, LG Electronics recently implemented an organization-wide voluntary departure program to cut costs, while other major subsidiaries are divesting assets to enhance profitability.
At the recent gathering, LG executives expressed that AI transformation would enhance operational efficiency and establish cost advantages. They reached consensus that management must establish definitive objectives and ensure rapid implementation to prevent losing vital transformation opportunities.
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Furthermore, Chairman Koo emphasized that the group's senior management should focus more attention on worker safety, referencing a September 4 U.S. Immigration and Customs Enforcement operation at a Georgia battery facility jointly managed by Hyundai Motor and LG Energy Solution.