LG executives discuss growing business uncertainties
LG Group Chairman Koo Kwangmo called on top executives Tuesday to come up with survival strategies and accelerate a digital transformation amid growing business uncertainties surrounding the country’s fourth largest business group.
During an executive workshop, Koo and the group’s top 30 executives agreed that the company needs to innovate its business models and way of doing business to create distinguished products and services to survive.
Participants in the workshop included LG Corp. Vice Chairman Kwon Young-soo, LG Uplus Vice Chairman Ha Hyun-hwoi, LG Electronics Vice President Jo Seongjin and LG Chem Vice Chairman Shin Hak-cheol, as well as other CEOs and directors of LG affiliates, according to the group.
“The next few years will be crucial for our survival as we are facing completely different crises,” Koo said. “We need to promptly secure fundamental competitiveness and change our way of doing business to overcome the challenges.”
The annual workshop took place at a time when LG and other large business groups here are facing numerous challenges such as the U.S.-China trade war and Japan’s export restrictions on Korea.
Internally, stagnant domestic consumption and the Moon Jae-in government’s labor-friendly policies are making things worse for chaebol.
Koo called for prompt action, saying, “I ask top management to take the lead in accelerating changes by formulating and executing appropriate plans.”
The chairman and the top executives shared the need to better understand rapidly changing technologies and customer needs in the digital era, agreeing to accelerate the group’s digital transformation.
LG will enhance its capabilities in artificial intelligence (AI) and big data, the group announced later, noting that it will also apply smart factory systems and strengthen digital marketing activities to change its way of doing business.
For their parts, the top executives reported on the ongoing digital transformation situation at each affiliate.
LG Chem’s Shin cited R&D strategies at his firm’s bioscience division that utilizes AI in analyzing genetic information and medical science theses in order to raise efficiency in discovering new drug candidates.
LG Group Chairman Koo Kwang-mo, right, walks and talks with top executives at an executive workshop held at the LG Leadership Academy in Icheon, Gyeonggi Province, Tuesday. At left is LG Corp. Vice Chairman Kwon Young-soo.