At a recent press conference in Las Vegas, Nevada, attended by Korean media, CEO William Cho, alongside senior executives, unveiled LG Electronics' strategic plan extending to 2025.
As part of the company's Future Vision 2030, LG aims to transition beyond its traditional focus on device-centric operations by penetrating mobility and commercial sectors. The company's objective is to evolve into a provider of smart life solutions, enhancing and integrating customer experiences seamlessly. CEO William Cho highlighted the company's strategic expansion into new business models such as subscription-based services and online brand a shops to enhance its market presence.
A key segment of LG's strategy is the platform-based service business, which is pivotal to restructuring the company's business model towards higher profitability. The goal is to augment this segment's revenue to be more than five times its current size by 2030, ultimately contributing to 20% of LG's total operating profit.
By 2030, LG foresees its B2B segment accounting for approximately 45% of the company's total revenue. In contrast, B2B revenue constituted about 27% of LG's total revenue in 2021, increasing to 35% by the end of the following year.
CEO William Cho emphasized LG's continued focus on strengthening capabilities across eight core technologies: software, system on a chip, AI, robotics, materials and parts, standards, next-generation computing, and cloud/data technologies.
To facilitate this growth, LG is venturing into strategic allocation of investment resources through equity investments and mergers and acquisitions (M&As), alongside substantial investment in facilities and research and development (R&D). Previously, LG declared its intention to invest over KRW 50 trillion by 2030 to drive its portfolio transformation and achieve substantial qualitative growth.
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