LG Electronics (LG) has announced its plan to transform the company from a well-known home appliance brand into a “smart life solutions company.” This transformation aims to enhance customers’ experiences by connecting various aspects of their lives. 

The company’s goal is to achieve global annual revenues of KRW 100 trillion by 2030.

In a speech at the LG Sciencepark in Seoul, South Korea, CEO William Cho outlined three main areas for growth. These include:

1. expanding their range of services through new platforms
2. strengthening business-to-business (B2B) operations
3. exploring new sectors like electric vehicle charging and digital health. 

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The company will focus on key changes such as electrification, servitization, and digitalization to achieve substantial growth in the medium to long term.

Cho emphasized that LG aims to move beyond being just a home appliance brand and become a company that enriches customers’ lives by connecting different aspects of their experiences. This transformation will involve changing the way LG operates and communicates.

Increasing revenues

Financially, LG has set specific objectives, aiming for a growth rate and operating profit of at least 7%, along with an enterprise value to EBITDA ratio of 7. To achieve this, the company plans to increase its sales from KRW 65 trillion to KRW 100 trillion by 2030. 

LG’s strategy is built on three main pillars: 

• transitioning to a platform-based service model
• accelerating B2B operations
• seeking new growth opportunities based on its strengths. 

By 2030, more than 50% of sales and operating profit are expected to come from these areas.

To support these efforts, LG plans to invest over KRW 50 trillion by 2030. This includes substantial investments in research and development, facilities, and strategic initiatives.

The company is also expanding its B2B business, leveraging its deep understanding of customer needs and communication skills from its long-standing consumer-focused operations. This expansion will encompass commercial, mobility, and virtual spaces.

Cho emphasized that LG is actively working to transform its corporate culture and brand communication to become a company that brings happiness and value to customers’ lives. The company is also dedicated to responsible corporate citizenship through its environmental, social, and governance (ESG) management activities.

LG Electronics is striving to evolve beyond being just a technology brand, focusing on creating meaningful experiences that enhance people’s lives. Through a range of high-quality products in home entertainment, home appliances, and air solutions, LG aims to deliver innovation for a better life across the Philippines.