LG Group Chairman Koo Kwang-mo on Thursday urged structural reforms led by a “select and focus” strategy to sharpen the group’s competitive edge and strengthen its profit-generating structure amid intensifying competition from Chinese rivals.
“We need to reinforce our structural competitiveness to stay ahead of Chinese rivals, who invest more than four times the capital and human resources (into produce development), compared to Korean companies,” Koo said in the group’s annual strategy meeting with chief executives of its key units.
The C-Suite meeting was attended by CEOs of major units of LG Electronics Inc., LG Display Co., LG Chem Ltd., battery maker LG Energy Solution Ltd. and broadband service provider LG Uplus Corp., as well as chief digital officers of the companies.
During the meeting, the participants emphasized the urgency of accelerating AI transformation to boost productivity and reduce costs amid growing uncertainties in the business environment.
Earlier this month, LG Electronics extended its voluntary retirement across the company as part of efforts to prop up profitability and redirect resources to future growth.
LG Chem has been shedding non-core assets, including water filter and dermal filler businesses.
Koo also urged chief executives to strengthen employee safety measures following the detention of 47 LG Energy employees and 250 workers from affiliated companies after the US immigration authorities raided the construction site of a Hyundai Motor Co.-LG Energy joint venture in Georgia early this month.
By Chae-Yeon Kim
why29@hankyung.com
Yeonhee Kim edited this article.
