LG Electronics CEO Lyu Jae-cheol (LG Electronics)
LG Electronics CEO Lyu Jae-cheol (LG Electronics)

LG Electronics’ new CEO Lyu Jae-cheol used his first New Year message to urge a sharpened focus on speed, profitability and AI-linked infrastructure, signaling more aggressive execution under new leadership.

In a prerecorded video message released Tuesday, Lyu told roughly 70,000 employees worldwide that LG Electronics must be prepared to “change the rules of competition” by putting customers first and accelerating decision-making and execution, according to the company.

Lyu, who took office following LG Group’s year-end leadership reshuffle in November, outlined five priorities: strengthening core businesses, accelerating qualitative growth, rebalancing the regional portfolio, developing new growth opportunities and transforming work practices through AI adoption.

At the center of the message was speed.

Lyu said that in a tougher competitive environment, speed would determine winners and losers, calling for faster commercialization of what he described as “winning technologies” built on key component competitiveness. He emphasized focusing resources on areas where customer value, business potential and technological leadership clearly overlap.

The most concrete signals came in his emphasis on qualitative growth through higher-margin businesses. Lyu highlighted business-to-business operations such as commercial HVAC systems and vehicle infotainment; solution businesses that expand ecosystems around platforms such as webOS; and direct-to-consumer models, including subscriptions and LG’s online brand shop.

These priorities align with recent earnings trends. LG Electronics’ home appliance subscription business generated revenue of 700 billion won ($472 million) in the third quarter of 2025, up 31 percent from a year earlier, according to the company’s regulatory filings. WebOS-based advertising and content services have also emerged as a key profit contributor as global TV demand softens.

Lyu also pointed to rebalancing LG’s regional portfolio by doubling revenue by 2030 in India, Saudi Arabia and Brazil. India carries particular weight following the successful initial public offering of LG Electronics’ Indian unit in October, which raised about 1.8 trillion won. The IPO proceeds flowed to the parent company, and executives have said they will be used to secure future growth engines and enhance shareholder value.

On new growth opportunities, Lyu named AI-powered homes, smart factories, AI data center cooling solutions and robotics. Among these, data center cooling has already translated into tangible B2B orders, with LG Electronics positioning its HVAC business as part of critical AI infrastructure rather than traditional consumer appliances.

The final pillar was what Lyu referred to as “AX,” or AI-driven transformation of work practices. He said applying AI tools across operations would differentiate customer experience while improving productivity and execution speed, adding that the company would build an environment where employees can easily use AI to focus on "higher-value work."

He concluded by saying that only sustained, rigorous execution would allow customers to clearly recognize that LG Electronics “is truly different.”


mjh@heraldcorp.com