LG chairman calls for revamped business strategies

LG Group chairman Koo Bon-moo instructed his staff to map out practical business strategies for an overall revision of each subsidiary’s targets during a monthly meeting of executives on Tuesday.

“Though there were discussions with CEOs of our subsidiaries last month, we’ve seen shortage of details and practicability in our mid- and long-term strategies,” Lee was quoted by his spokespeople as saying.

Amid unfavorable external factors, superficial business goals with only slogans are not enough to become the market leader, Koo stressed.

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

According to group spokespeople, the LG chairman has continued to reiterate the need for strategies to develop products that can dominate the market.

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.”

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

He has been leading the drive to nurture future growth projects by visiting LG Group units’ part-supplying factories several times over the past year.

“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.”

In its effort to diversify growth potential, LG Group is poised to tap the fuel cell technology business, which it considers to be the next-generation energy source.

The conglomerate invested a total of $45 million to acquire a 51 percent stake in a unit of Rolls-Royce Fuel Cell Systems, a firm that has been key for fuel cell development.

Chung In-jae, currently executive vice president of the group’s flagship LG Electronics, will likely serve as chief executive of the new company.

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