LG Electronics CEO and vice chairman Koo Bon-joon has joined LG Corp., the group’s holding company, stepping closer to the center stage of the nation’s fourth-largest conglomerate.
As part of the group’s annual executive reshuffle on Thursday, Koo was assigned with a crucial mission for LG’s survival in the future -- beefing up next growth engine businesses such as display, battery, energy solutions and automotive parts.
While the flagship LG Electronics is suffering from slowing device sales amid the rapid market saturation and fiercer competition from Chinese rivals, the group is recently making a big push on business-to-business areas for the next big leap.
“Scattered businesses across affiliates will speed up under the strong leadership of Koo,” said an LG official.
 |
Koo Bon-joon |
Under a strict succession rule designating the first son as the group’s leader, Koo may be unlikely to succeed his elder brother LG Group chairman Koo Bon-moo.
But considering the chairman’s first son Koo Kwang-mo, vice president of LG Corp., is still in his 30s, the uncle is expected to play a bridging role for some time to come.
“Amid economic uncertainties and enhanced competition, we have carried out a drastic reshuffle in the top brass,” LG said in a statement. LG also replaced seven presidents at key companies, compared to last year’s three.
Despite Koo’s joining, LG Corp. will be controlled by the dual CEOs -- chairman Koo and president Ha Hyun-hwoi -- the group said.
The younger Koo took office as CEO of LG Electronics in 2010. Under his leadership, the company’s operating profits soared to 1.82 trillion won ($1.59 billion) last year from 176.4 billion won five years ago.
The then faltering mobile business was put back on track, while new businesses, such as automotive parts, solar power solutions and organic light-emitting diode TVs, are seeing tangible results now.
He especially pushed hard on research and development investments. Last year, the company increased R&D investment to 3.66 trillion won, about 6.2 percent of total revenue.
Koo will continue to serve as chairman of LG Electronics’ board, while the management is controlled under three co-CEOs -- chief financial officer Jung Do-hyun, mobile chief Cho Juno and home appliance chief Jo Seong-jin.
In line with the renewed business-to-business push, LG promoted many executives who have led the group’s energy solutions and battery businesses Thursday.
Kwon Young-soo, president of LG Chem’s battery business division, was promoted as vice chairman and CEO of LG Uplus, the telecom unit, while LG Innotek president Lee Ung-beom replaced Kwon.
LG Display president and CEO Han Sang-beom was also promoted as vice chairman. Park Jong-seok, LG Electronics’ technology advisor, took office as CEO and president of LG Innotek.
By Lee Ji-yoon (
jylee@heraldcorp.com)
