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Koo urges LGE to take the right path

Koo Bon-joon. (Bloomberg)
Koo Bon-joon. (Bloomberg)

Koo Bon-joon, vice chairman and CEO of LG Electronics, on Wednesday stressed the need for employees to take the “right path,” indicating he would be cracking down on corruption.

“We will be dealing strictly with any violation or corruption to set an example,” Koo said in an emailed message.

The chief executive lamented that since he created his email account on May 1, asking for employees to directly send him ideas or feedback, he has frequently been notified of corruption.

He said that it pains him to learn that so many in the company were failing to “follow the right path,” which has been LG’s priority mission for becoming a global industry leader.

Drawing from the past example when Enron of U.S. toppled on account of a corruption scandal, Koo said all employees must remember the core values of LG.

“The road we seek cannot be compromised, particularly if we are to achieve sustainable lead in the world,” Koo said.

Koo’s message comes on the heels of a scandal at Samsung Group involving one of its key affiliates, Samsung Techwin.

The company has seen then launched a campaign to cleanse the group and all affiliates. Audits were started recently of the affiliates, including the financial units.

Regarding future performance of LG Electronics, which is battling a chronic deficit after failing to jump on the smart device bandwagon, Koo appeared to be optimistic.

There are no noticeable improvements, but Koo pointed out a further deterioration seemed unlikely.

“Up is the only direction we can go from here,” he said.

Earlier, Koo had said the electronics maker’s mobile communication unit was unlikely to swing to the black in the second quarter of this year.

Second quarter earnings will be announced at the end of this month.

By Kim Ji-hyun (jemmie@heraldcorp.com)
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