LG’s Strategic Shift: Embracing Smart Life Solutions for Future Growth

LG Electronics, a global home appliance brand, unveiled its new business vision, emphasizing a shift towards non-hardware products and services. The company plans to allocate more resources to smart home solutions, the webOS smart TV operating system, and business-to-business offerings, including the electric vehicle parts business. The company has announced its vision to transform into a “smart life solutions company.” 

In a recent event, the CEO emphasized three key growth engines: the development of platform-based service businesses, acceleration of business-to-business initiatives, and exploration of new business sectors like electric vehicle charging and digital health. 

“We will establish a brand-new LG by reinventing the way we work and communicate toward this goal,” said CEO Cho

Cho further emphasized LG’s financial objectives, aiming for the achievement of Triple 7. This objective entails maintaining an average growth rate, operating profit of 7 percent or more, and an enterprise value to EBITDA ratio of 7. 

In a collaborative effort with the Seoul Metropolitan Government, LG Electronics recently implemented an innovative accident prevention system in school zones across Seoul, South Korea. 

Also, in May this year, LG Electronics, the prominent South Korean consumer technology company, made headlines by filing a patent for a television system that integrates NFT trading capabilities. The patent application, submitted to the World Intellectual Property Organization (WIPO), envisions a TV set that seamlessly connects to an NFT market server.

As part of its new vision, the company aims to increase its annual revenue to KRW 100 trillion by 2030, a substantial increase from the approximately KRW 65 trillion recorded last year. 

The company held a press conference where CEO Cho Joo-wan said, “We are not going to settle for the best home appliance maker, but will leap forward in becoming a smart life solution company, which connects consumers’ spaces and experiences.”

In recent years, LG has proactively diversified its business portfolio to maintain competitiveness in the technology landscape. 

CEO William Cho emphasized the company-wide transformation at LG, encompassing changes in corporate culture and brand communication across all customer touchpoints. 

Furthermore, he spoke of LG actively engaging in environmental, social, and governance (ESG) management activities to fulfill its responsible global corporate citizen responsibilities.