It is an intense "crisis consciousness" message issued by LG Group Chairman amid increasingly fierce global competition.
On the 27th, LG Group held its first meeting of its affiliates this year at the LG Inhwawon in Icheon, Gyeonggi Province. About 30 top executives from major affiliates, including LG Electronics, LG Display, LG Chem, and LG Energy Solution, attended the meeting, which was held on the 78th anniversary of its foundation.
At the meeting, Chairman Koo shared his 70th anniversary New Year's address in 2017, which was announced by Koo Bon-moo, the former president. Chairman Koo recalled, "At that time, it was a time when the economic order was reorganized in earnest with the launch of the Trump administration as it was this year," adding, "The first president said, "We need to upgrade our portfolio through selection and concentration where competitive advantage is sustainable and performance can be generated, and for this, fundamental changes in business structure and business method are needed."
Chairman Koo reflected, "However, looking back on the changes, changes in the business environment have occurred much faster than expected, but changes in our (LG Group) business structure have not been implemented properly." He then reiterated his choice and focus. If "the reality is that you can't do all the business well," Chairman Koo said with strength, "That's why you have to choose and focus more."
In particular, Chairman Koo told the presidents, "The priority of the project should be placed on sustainable 'competitive advantage' and 'establishment of entry barriers', and the priorities of capital input and execution should be matched," adding, "This is the same for R&D (R&D), a source of future competition." This is interpreted as a foreshadowing of LG Group's business reorganization in the future.
In addition, Chairman Koo said, "In some businesses, the competitiveness has declined due to the focus on quantitative growth and organizational survival logic, which has failed to create the expected portfolio advancement," adding, "This has been inertia." Let's have a sense of urgency and shake off the inertia of the past, the inconsistency between strategy and implementation," he said with force.
[Reporter Lee Sang-deok]
