LG chief calls for market dominance

Chairman Koo vows to replace CEOs when businesses lag behind  competitors


LG Group chairman Koo Bon-moo called for efforts by CEOs of companies within the conglomerate to dominate markets at home and abroad, indicating that he would replace those who fail to attain the goal.

The tycoon unveiled his personnel policy during a meeting of chief executives of the group’s subsidiaries, held at the headquarters in Yeouido, Seoul, on Wednesday.

“Though we’ve grappled to take the lead in the market over the past few years, we saw a large portion of businesses fail to overtake the leading companies,” he told the participants.

LG Group chairman Koo Bon-moo speaks at a meeting of executives of the conglomerate’s affiliates at the group headquarters in Yeouido, Seoul, on Wednesday. (Yonhap News)

Koo said that each affiliate had to see a shortage of details and practicability in carrying out their goals and strategies, set up several years ago.

Reiterating that each sector is required to take the top of the market by developing high-quality products, he reiterated that “all executives should bear in mind that they will thoroughly be assessed in terms of the market dominance.”

The LG chairman also instructed the chief executives to map out practical business strategies for an overall revision of each subsidiary’s targets.

Amid unfavorable external factors, superficial business goals with only slogans are not enough to become market leaders, he said.

“Even if there is no immediate fruit, it is necessary to actively hire talented employees and invest in prospective sectors.”

He has been seeking to overhaul the group’s corporate structure.

“To take the initiative in the market, we need basic changes in our internal structure,” he said.

Koo is also prioritizing the significance of creativity, instructing the CEOs to bear customer value in mind and build up differentiated competitiveness.

“The foundation for a global top firm is created by the competitiveness of its projects concerning subparts and materials,” he said. “The group must turn the related businesses into future key growth engines through innovations and challenges.”

Koo Bon-moo spent his summer days busy as the group predicts that the eurozone debt crisis could damage economies in the Middle East and Africa.

Differentiated marketing would be a key factor in diversifying new export destinations, a group spokesman said.

He has also reiterated the importance of finding outstanding human resources, but this is the first time he has actually taken part in the search.

At a human resources event, Koo urged top executives to do their best to secure excellent people, adding that he was willing to make personal visits if necessary.

By Kim Yon-se (kys@heraldcorp.com)