LG realizes a strategic restructuring to enhance synergy and drive growth in key business areas. The company announced a series of organizational changes and executive appointments following the approval of its board of directors. The restructuring aims to accelerate the company’s mid- to long-term strategy called “Future Vision 2030”.
It focuses on regrouping LG’s business operation units. This in order to maximize the potential of existing businesses, strengthen platform-based service operations and accelerate B2B initiatives. Another target is to secure new growth engines in promising sectors. These changes are designed to enhance efficiency through the strategic selection and concentration of capabilities, thereby creating greater synergy between businesses and bolstering future competitiveness.
Key changes in the business structure
Among the changes in the business structure, a new division has been established to support the growth of the HVAC (heating, ventilation and air conditioning) business. Besides, the “Overseas Sales & Marketing Company” is now the reference point for B2B business outside Korea. Additionally, display-based operations – including TVs, monitors and signage – have been integrated into a single division to foster synergies and expand platform-based service businesses.
All the “Companies” (the business units) now incorporate “Solution” in their names, reflecting LG’s evolution into a Smart Life Solution provider that connects and enhances customer experiences across various environments, including homes, commercial spaces, mobility and virtual platforms.
Reorganization of the divisions
LG’s divisions today have this denomination: Home Appliance Solution (HS) Company, Eco Solution (ES) Company, Media Entertainment Solution (MS) Company and Vehicle Solution (VS) Company. The reorganization redefines their roles and identities within LG.
In particular, the H&A Company has been renamed HS Company to align with the vision of “Zero Labor Home, Makes Quality Time”. To support this vision, LG moved the Platform Business Center – responsible for the planning, development and operation of LG ThinQ – directly under HS Company. “This strategic realignment – LG explains – aims to establish HS Company as a leader in AI solutions across diverse spaces, including homes, commercial areas and vehicles, effectively addressing customer needs outside traditional home settings”. Furthermore, HS Company incorporates the Robot Business Division (previously under the responsibility of the Business Solutions Company) to integrate core robot technologies into its home robot solutions. Lyu Jae-cheol continues to lead HS Company.
As mentioned, the HVAC business (previously part of the H&A Company and a significant contributor to LG’s B2B growth) now operates as a standalone entity under the ES Company. This division also assumes the responsibility for the electric vehicle charging business from the BS Company. Lee Jae-sung leads the division.
Meanwhile, to enhance the competitiveness of overseas B2B operations, LG established the B2B Business Capability Enhancement Division under the Overseas Sales & Marketing Company.
Finally, the Chief Strategy Office (CSO), acting as LG’s future strategy “control tower”, oversees AI acceleration. And the Chief Digital Office, previously responsible for digital transformation, has been reorganized into the DX Center and transferred directly under the CSO. The DX Center focuses on the development of generative AI technologies.
