[THE INVESTOR] LG Household & Health Care has attained record-high earnings in the second quarter, and for the first six months of this year.

But that’s not all. The comestics and household goods maker’s quarterly sales have been on the rise since the third quarter of 2005. In terms of sales, the second quarter marks the 44th straight increase, and the 45th quarter for operating profit. Both sales and operating profit have risen for 11 straight years. 

The steady growth is triggering speculation that LG Life & Health Care may eventually become a formidable rival to the nation‘s largest cosmetics firm AmorePacific. 




One of the key people behind this phenomenal success is the firm’s vice chairman and CEO Cha Suk-yong, already a well-known figure in the industry for both his business acumen and personal wealth. 

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Cha joined as CEO of LG Household & Health Care in 2005. Since then, the firm has recorded 27 straight quarters of double-digit sales and operating profit. The firm’s stock value grew 15-fold. 

Such achievements have helped him earn the solid trust of LG Group chairman Koo Bon-moo.

Recently, his biggest feat has been to promote even growth among all of the firm's divisions, ranging from cosmetics and health care products to household goods and beverages.

In particular, LG Household’s investment in upscale cosmetics -- represented by brands such as Whoo and su:m 37 and – have paid off. Sales in this area jumped 56 percent compared to the first quarter, and they now account for two-thirds of the firm’s cosmetics business.

Exports are also going well for Cha, with su:m now available both online and offline in China, one of the biggest markets for local cosmetics makers. Whoo’s China sales also rose 56 percent.

On a personal level, Cha had been cited in 2013 as the richest chief executive in terms of stock assets among the top 100 Korean firms who is not a member of the founding family. Cha held more than 25 billion won (US$22.04 million) worth of LG Household & Health Care stocks. He dumped all of his common shares in 2014.

By Kim Ji-hyun (jemmie@heraldcorp.com)