LG Group Chairman Koo Kwang-mo underscored Thursday the importance of artificial intelligence transformation to strengthen structural competitiveness, warning that Chinese rivals are investing "three to four times more" in capital and manpower.
Gathering more than 40 CEOs and chief digital officers from key affiliates — including LG Electronics, LG Display, LG Chem, LG Energy Solution and LG Uplus — Koo emphasized that LG’s core businesses are locked in fierce competition with Chinese companies across displays, batteries, chemicals and home appliances.
"Chinese rivals are investing three to four times more in capital and manpower, stressing the urgency of execution," Koo said at the daylong meeting held at LG Academy in Icheon, Gyeonggi Province. "We have focused on LG's three strategic pillars, business selection and concentration, 'winnning R&D' and structural profitability improvement, but much still remains to be done."
LG’s challenges are visible across sectors: LG Display has exited the large LCD business under pressure from low-cost Chinese makers and is now struggling to defend its OLED edge; LG Electronics faces thinning margins in appliances as Chinese brands gain ground in mid- and low-end segments; LG Chem is contending with price wars in basic chemicals; and LG Energy Solution continues to battle CATL and other Chinese giants for global battery contracts.
LG said the leaders from LG Electronics, LG Display, LG Chem, LG Energy Solution and LG Uplus, along with chief digital officers, shared a heightened sense of crisis. They agreed that clear leadership-driven goals and swift execution are essential to boost productivity and secure cost competitiveness through AI, the company said.
“This is a moment we cannot miss. Clear leadership goals and swift action are indispensable,” LG said in a statement.
Koo also highlighted employee safety, referencing the recent detention of dozens of LG Energy Solution staff and subcontractors during a US immigration crackdown. “A company is where employees spend more time than at home,” he told executives, urging them to prioritize workers’ wellbeing alongside performance.
herim@heraldcorp.com
