LG Electronics has appointed Joo-wan Jo (Chief Strategy Officer) as the new CEO. It contains the will to proactively respond to the rapidly changing global market environment and to advance digital transformation based on customer value-first management, thereby upgrading the business portfolio.
LG Electronics held a board meeting on the 25th and carried out organizational restructuring with executive personnel in 2022.
LG Electronics carried out promotions for a total of 50 people, including one president, three vice presidents, nine executives and 37 executives. Last year, the number of promotions was 56 (1 president, 3 vice presidents, 9 managing directors, 43 managing directors).
An LG Electronics official said, “Based on our thorough performanceism, we have selected talents who can not only strengthen short-term business performance but also fundamental business competitiveness. We actively recruited talented outside talent to lead innovation and change.”
He continued, “We see this as an important time to rapidly promote digital transformation and upgrade our business portfolio based on customer value-first management in order to preemptively respond to the rapidly changing global market environment.”
■ Cho Joo-wan appointed CSO as new CEO
LG Electronics announced that it has promoted Joo-wan Jo, the chief strategy officer (CSO), who possesses global business sense and business strategy capabilities acquired through extensive overseas experience, to the president and appointed him as the new CEO.
President Cho joined Goldstar, the predecessor of LG Electronics, in 1987, and has followed the path of entrepreneurship by accumulating business experience in major overseas markets such as the United States, Germany, and Australia.
In particular, President Cho showed his determination to lead the establishment of a world-class intelligent autonomous factory in Clarksville, Tennessee, in order to preemptively respond to the trend of protectionism in the global market and to strengthen competitiveness in the North American home appliance market during his tenure as the representative of North America.
In addition, while serving as CSO for the past two years, President Cho has taken on bold M&A as a way to advance the business portfolio to prepare for the future of LG Electronics. It was evaluated that it introduced innovative processes that were not previously available, such as sourcing.
Three people were promoted to Vice President, including CTO Kim Byung-hoon and ICT Technology Center Director, Lee Sam-soo CDO, and BS Business Division Director Jang Ik-hwan. Byung-Hoon Kim, CTO, has secured the foundation for next-generation source technologies such as 6G, AR/VR, metaverse, and artificial intelligence and new business.
CDO Lee Sam-soo was evaluated for contributing to establishing a company-wide data collection and integration system and strengthening digital transformation capabilities. Ik-Hwan Jang, head of the BS business division, has been reinforcing the business structure shift centered on premium IT products and preparing for the future of the B2B business.
A total of nine people were promoted to managing director, including Hwi-Jae Cho, who contributed to business performance through patent assetization of original technology, and Jin-Hyeok Jang, who contributed to efficiently responding to the rapidly changing distribution environment based on a broad understanding of overall online sales.
In particular, LG Electronics showed its strong will to strengthen the competitiveness of its online business by promoting Jang, who was hired from outside the company last year, to managing director after about a year.
Among female talent, Hyukjin Kwon (female, 45 years old), who contributed to the development of differentiated products and services by researching the lifestyles and market trends of women, Jeongeun Shin, senior researcher who contributed to discovering data-based heterogeneous industry convergence services ( Two women, 41 years old) were promoted this time. Director Shin, born in 1980, is the youngest among the promoted executives.
LG Electronics recruited two female executives from outside to strengthen its business expertise and capabilities.
Hyang-eun Lee, managing director (female, 43 years old) is a professor in the Department of Service Design Engineering at Sungshin Women’s University, and is an expert in the field of customer and market trends. The customer experience innovation department of the H&A business division will plan products and services based on customer experience. Hyo-eun Kim, managing director (female, 45), is an expert in the field of brand marketing recruited by global company P&G. He will be in charge of brand management under the Global Marketing Center.
■ Organizational reorganization in 2022…Operated as four business divisions
Based on the strategy of ‘win-win growth and successful change’, LG Electronics concentrated its company-wide capabilities to strengthen customer value management and carried out organizational restructuring to operate a responsible management system centered on business divisions.
LG Electronics will upgrade the CS Management Center to the Customer Value Innovation Division to enhance the customer experience. The head of the customer value innovation division will be Vice President Jeong Yeon-chae, who served as the head of the LG Electronics team.
The customer value innovation department under the CSO department is renamed the customer value innovation office and transferred to the customer value innovation department. The secretariat is responsible for reflecting customers’ pain points (points where they feel uncomfortable) in overall management such as product planning, product development, and sales.
In order to strengthen new businesses and services based on customer experience, LG Electronics has upgraded the Customer Experience Innovation Office under the H&A Business Headquarters and HE Business Headquarters to the Customer Experience Innovation Department.
The Design Management Center upgraded the LSR (Life Soft Research) office to the LSR Research Center to strengthen its role in discovering future trends and customer-oriented business insights.
In the CDO (Chief Digital Office) sector, which was established in July this year for data-based customer value innovation, the AI Big Data Room has risen to the position in charge of AI Big Data to accelerate digital transformation.
LG Electronics decided to operate it as a system of four business divisions. Jae-cheol Ryu, head of the H&A business division, and Hyung-se Park, head of the HE business division, will continue to take charge of the headquarters.
Ik-Hwan Jang, who led the turnaround of the PC business while continuously strengthening the product competitiveness of the notebook ‘Gram’ while serving as the head of the IT business division, will be promoted to vice president and take over as the head of the BS business division.
The head of the VS business division will be headed by Eun Seok-hyeon, who served as the head of the VS smart division and achieved high growth in the in-vehicle infotainment sector.
In order to strengthen the competitiveness of the home appliance business, LG Electronics will establish a refrigerator business department under the H&A business headquarters. In addition, in order to build a new refrigerator production line within the Vietnamese production corporation and to enhance the manufacturing competitiveness of overall household appliances, a Vietnamese production manager is placed under the corporation. HE Business Headquarters will establish a TV business operation center to increase the efficiency of TV business operation. In addition, in order to diversify the portfolio of the TV business, a content service department is newly established under the platform business department.
LG Electronics CTO (Chief Technology Officer) will be promoted to vice president by Kim Byung-hoon, who served as the head of the Future Technology Center. The Future Technology Center will be renamed the ICT (Information and Communication Technologies) Technology Center to focus on securing future core technologies and common base technologies in the information and communication field.
The center will be headed by Kim Byung-hoon, the new CTO. At the beginning of this year, CTO Kim was selected as an IEEE Fellow in recognition of his competency and research achievements as an expert in the field of communication at the American Society of Electrical and Electronics Engineers (IEEE), the world’s largest gathering of technical experts in electrical and electronic engineering. In order to strengthen the connection between technology and business in the B2B field, the Advanced R&BD Center under the CTO Division will be renamed as the B2B Prior Technology Center.
In the CSO division, the M&A department will be upgraded to the M&A department in order to discover new growth engines and accelerate future preparation.