LG Electronics (LG) has announced its ambitious vision to evolve from a top global home appliance brand to a “smart life solutions company” by 2030. The company aims to connect and enhance customers’ diverse experiences while targeting global annual revenues of KRW 100 trillion.
During a significant speech at the LG Science Park in Seoul, South Korea, CEO William Cho outlined the company’s bold vision, emphasizing three key growth engines:
Advancing business portfolio through new platform-based service businesses.
Accelerating business-to-business (B2B) initiatives.
Exploring new business areas such as electric vehicle charging and digital health.
CEO Cho identified electrification, servitization, and digitalization as crucial inflexion points that will drive LG’s rapid mid- to long-term growth.
Cho stated, “LG will continue to pursue its bold vision of transforming into a smart life solutions company that expands and connects with customers’ spaces and experiences, moving beyond its current position as a leading home appliance brand. We will establish a brand-new LG by reinventing our work processes and communication methods as we strive towards this goal.”
The CEO also outlined the company’s financial objectives, aiming to achieve Triple 7, which entails an average growth rate and operating profit of 7 per cent or more, as well as an enterprise value to EBITDA ratio of 7. LG aims to increase its sales from KRW 65 trillion to KRW 100 trillion by 2030, positioning itself as a market-recognized and customer-centric company.
To drive customer experience, LG will focus on transitioning to a platform-based service business model, accelerating B2B initiatives, and acquiring new growth engines based on its competitive advantages. By 2030, these three pillars are expected to contribute to more than 50 per cent of sales and operating profit.
The company plans to invest over KRW 50 trillion by 2030 for qualitative business growth, including research and development (R&D) investments of over KRW 25 trillion, facility investments of over KRW 17 trillion, and strategic investments of KRW 7 trillion.
LG is also expanding its B2B business, leveraging its deep understanding of customers and communication expertise gained from 65 years of continuous innovation in the B2C sector. The company aims to extend its capabilities to commercial, mobility, and virtual spaces.
In addition to business transformation, LG is committed to company-wide changes, including corporate culture and brand communication, with a focus on becoming a brand that resonates with customers and brings smiles to their faces. The company is dedicated to driving ESG (Environmental, Social, and Governance) management activities to fulfil its responsibilities as a global corporate citizen.