LG Electronics Charts Course to the Future With New Organizational Changes
Organizational Moves to Consolidate Company’s Capabilities to Create
Differentiated Customer Value, Accelerate Future Growth Engines
SEOUL, Nov. 24, 2022 — LG Electronics (LG) today announced organizational changes designed to bolster its preparedness for the future. The changes are being implemented primarily to accelerate the company’s future growth engines and enhance its ability to create differentiated customer value and experiences.
A key piece of LG’s forward-looking strategy is the establishment of the Corporate Customer Experience (CX) Center, which will report directly to LG’s headquarters. The CX Center will be led by executive vice president, Lee Chul-bae, who previously served as head of the Corporate Design Management Center. The main role of the CX Center will be to create a seamless and expanded customer experience. It will also develop strategies and roadmaps to foster greater innovation at every stage of the customer experience journey from product planning and customer service to future business models.
The CX Center will also encompass the CX Strategy Division, which will be charged with the discovery and promotion of company-wide goals and core tasks, and the LSR Customer Research Center, formerly the Life Soft Research (LSR) Lab.
LG’s Platform Business Center will play a new role in integrating and organizing LG ThinQ services, responsibilities that were previously distributed across corporate and business headquarters. Established in July 2021, the Platform Business Center has been leading the creation of LG’s fandom based on data. Moving forward, the Center will be headed by LG’s vice president, Jung Ki-hyun, who joined the company in September this year. Jung has had a distinguished career with roles at eBay Korea and Google as well as acting as the CEO of Meta Korea.
In 2023 and beyond, LG will continue to focus on improving supply chain management (SCM) and augmenting its already-strong Digital Transformation (DX) capabilities. To this end, the company’s Procurement and SCM Management Center has been renamed the Global Operation Center, with the functions and roles of the Production Planning Division transferred from the Production Engineering Research Institute. The Global Operation Center will create synergies across the company’s operations – such as production, purchasing and SCM – through promoting improvements based on DX technologies.
Aiming to spur further growth through improved organizational performance, LG will strengthen its agile and responsive decision-making system across all four business units.
Lyu Jae-cheol, head of the Home Appliance & Air Solution (H&A) Company, has been promoted to president in recognition of his success in improving H&A’s performance and product portfolio. An expert in his field, Lyu has worked in various areas of LG’s home appliance business since 1989, including in the R&D and production departments.
Eun Seok-hyun, head of the Vehicle component Solutions (VS) Company, was promoted to vice president. Under his leadership, LG’s vehicle component solutions business has achieved operational stability with an improved profit and loss structure, and has constructed a strong business portfolio encompassing several key future mobility technologies.
Another of the newly-announced changes, the H&A Company’s “Living Appliance Business’ and “Kitchen Appliance Business” will become the “Living Solution Business” and “Kitchen Solution Business,” respectively. The renaming aligns with LG’s renewed focus on customer experience innovation and points to the greater emphasis the company is placing on the expansion of content and services.
The Home Entertainment (HE) Company is set to increase its capacity to create customer value by establishing the Indonesia Research and Development Division under the HE R&D Lab Institute to enhance collaboration between overseas R&D and manufacturing bases.
The VS Company aims to strengthen its capabilities in purchasing, producing and SCM by establishing an operation group that manages the integrated operation of the electric vehicle component business.
The Business Solutions (BS) Company set up a new EV Charger Business Division directly under the company to accelerate the full-fledged development of EV charging solution business that was launched last year.
All appointments are effective Dec. 1 with promotions going into effect on the first day of the new year.
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