- Kyle Chua
LG Announces Organisational Changes Aimed Towards Future Growth
Updated: Dec 18, 2023
LG has announced organisational restructuring to achieve its future vision for 2030, which is to go beyond consumer electronics and into the realm of smart life solutions.
The restructuring is also being implemented to boost the electronic giant's global competitiveness and further growth to enhance customer value.
Chief among the changes is the establishment of the Overseas Sales and Marketing Company, which will report directly to LG CEO William Cho. The company will be led by Thomas Yoon, who previously served as the President and CEO of LG Electronics North America.
LG says the company will play a crucial role in accelerating change and growth as well as enhancing global brand power by developing opportunities to create customer value. The company will oversee sales of the subsidiaries in North America, Europe, Latin America, the Middle East and Asia, along with the Global Marketing Group and the Direct-to-Consumer (D2C) Sales Business Group.
The company will also look to strengthen executive capabilities in the overseas operations of strategically critical businesses including business-to-business (B2B) operations as well as aid the development of overseas sales expertise and accelerate the advancement of D2C business models. The D2C Business Group, meanwhile, will handle expanding customer contact points by strengthening Online Brand Shop (OBS) activities and customer data-based digital marketing capabilities.
LG is also optimising its four business units to spur further development of original technologies in each and support the company’s business transformation.
The Home Appliance & Air Solution (H&A) Company will establish an engineering sales division under the Air Solutions Business to enhance the engineering capabilities to maximise business synergy in heating, ventilation and air conditioning (HVAC), its core B2B area. Additionally, the Home Beauty Business will be transferred from the Home Entertainment Company to the H&A Company, synergising with existing product lineups in the Home category.
Meanwhile, the Home Entertainment (HE) Company looks to further accelerate its transition to become a media and entertainment powerhouse. It'll establish the webOS SW Development Group, which will report to Park Hyoung-Sei, President of the HE Company. The group's efforts are aimed at strengthening the smart TV operating system webOS. Also, the eXtended Reality (XR) Business Division will be established directly under the headquarters.
The Vehicle component Solutions (VS) Company will set up the Global Customer Strategy Division directly under its headquarters to establish an integrated strategy for order and sales management and strengthen marketing functions to accelerate the growth of the business.
Finally, the Business Solutions (BS) Company will expand sales and business operations in major regions such as North America, Europe, Central Asia, Asia and Latin America. The current B2B India Business Department will also be overhauled into the B2B India Business Division to maintain continuous growth in the country.
New appointments are effective on 1 December 2023, while promotions go into effect on the first day of the new year.
LG has announced organisational restructuring to achieve its future vision for 2030, which is to go beyond consumer electronics and into the realm of smart life solutions.
Chief among the changes is the establishment of the Overseas Sales and Marketing Company, which will report directly to LG CEO William Cho.
LG is also optimising its four business units to spur further development of original technologies in each and support the company’s business transformation.