LG Electronics to accelerate growth in India, Global South

LG Electronics CEO Cho Joo-wan said Tuesday that the company will focus on accelerating expansion in emerging markets, including India.

Speaking at the tech giant’s annual shareholders’ meeting held at the LG Twin Towers in Yeouido, Seoul, Cho identified Asia, particularly India, along with Latin America, the Middle East and Africa -- or the Global South -- as key regions for growth and new business opportunities.

“India stands out in terms of economic stability and growth potential,” Cho told investors. “The current household appliance penetration rate is very low, but the country is expected to see a significant rise in middle-class consumers as GDP per capita enters the $3,000 range next year.”

Cho also stressed LG’s high market share in the country, as well as its recognition as the most desirable workplace for two consecutive years.

“We won’t be complacent, but become a beloved national brand in India,” he added.

LG Electronics has been eyeing India as a key growth driver and is preparing for the initial public offering of its Indian unit this year. The company recently obtained preliminary approval for the IPO from the Securities and Exchange Board of India.

At the meeting, Cho shared the overall business direction, maximizing existing business growth to fund future investments.

“We plan to maintain the overall strategy of expanding from the existing home appliances into B2B segments, such as mobility and commercial, while transitioning devices into platforms and expanding service-based businesses,” he said.

All agenda items, including financial statements, amendments to the articles of incorporation, director appointments and executive compensation limits, were approved by shareholders during the meeting on Tuesday.

Cho was reappointed as internal director and LG Corp. Vice Chairman Kwon Bong-seok was reappointed a nonexecutive director. Seoul National University business professor Kang Sung-choon was appointed as a new outside director.

After the meeting Cho also discussed US tariffs, noting LG is ready to shift production to the US if necessary.

“We have prepared building sites at our Tennessee plant to produce refrigerator and ovens as a last option when (the US') tariffs on Mexico take effect,” Cho told reporters after the shareholders’ meeting. “We have already begun maintaining the site and constructing some temporary buildings so we can act without delay if the (tariffs) go into effect.”

In March, US President Donald Trump has imposed 25 percent tariffs on all goods from Canada and Mexico in March. However, the Trump administration then paused implementation for one month, until April 2, for items covered under the US-Mexico-Canada Agreement.

LG currently operates manufacturing facilities in Mexico, producing TVs, refrigerators, ovens and automotive electronics. If the tariffs take effect, the company plans to shift major appliance production to its existing plant in Tennessee, which currently manufactures washing machines and dryers.

Cho also talked about his upcoming meeting with Microsoft CEO Santya Nadella scheduled for Wednesday in Seoul. Cho said the two companies will continue collaboration on developing a new AI agent, a partnership that was announced at CES 2025 earlier this year.

“We will jointly develop an AI agent and you can consider it confirmed that our chiller technology will be installed in Microsoft’s data centers,” he said. “But as to how much will be installed, we still need to look into it in details.”

Chillers are large-scale cooling systems used in large buildings, including AI data centers.