LG Group Chairman Koo Kwang-mo on Thursday urged the top leadership of the affiliates to act with a "sense of urgency" and embrace change amid a challenging business landscape.
Koo’s strong message was delivered at the conglomerate’s first executive meeting of the year, held at the LG Academy in Icheon, Gyeonggi Province. Around 30 CEOs from LG Group’s key affiliates, including LG Electronics, LG Display, LG Chem and LG Energy Solution, gathered for the quarterly session to share management issues and future strategies, according to LG Group.
Thursday also marked the 78th anniversary of the company’s founding.
Koo acknowledged that LG's business structure has not kept pace with the rapidly changing business landscape.
“With a sense of urgency, we must break away from past inertia and the misalignment between strategy and execution,” Koo said, according to a company statement.
Koo urged executives to proactively drive change: “Change is no longer an option, but a matter of survival. The golden time is running out," he said.
At the meeting, he also emphasized the importance of focus and prioritization. “The reality is that we cannot do all businesses well, which is why we must focus and prioritize,” he said.
Koo also addressed shortcomings in the company's past efforts to enhance its business portfolio.
“Some business units have focused too much on quantitative growth and organizational survival, leading to a decline in competitiveness and hindering the portfolio advancement we were aiming for,” he said.
Executives at the meeting recognized LG’s structural challenges and discussed strategies to overcome them, the company said.
The meeting echoed the sense of urgency Koo expressed during a shareholder meeting the previous day. He described this year as a “golden time” for change and innovation, amid shifts in the global order due to evolving international relations, economic conditions and technology innovation.
sahn@heraldcorp.com
