(from left) LG Corp. Vice Chairman Koo Bon-joon charged with exploring new growth engines,; Vice Chairman Kwon Young-soo of LG U+,; and Vice Chairman Han Sang-beom of LG Display.

(Photos:LG Group)

LG Business Group carried out a reshuffle of group executives, including LG Electronics Vice Chairman Koo Bon-joon, charged with exploring new growth engines, and calling for more focus on B2B businesses. Vice Chairman Koo now takes the helm at a division responsible for creating new growth engines at LG Corp., the holding company of the group. LG Display President Han Sang-beom and LG Chem President Kwon Young-soo have been promoted to vice chairman for their roles in nurturing OLED and second battery businesses into new B2B arenas, respectively. Kwon is appointed to be vice chairman of LG U+, replacing Vice Chairman Lee Sang-cheol, who quit the telecom company. 

Six out of the eight executives promoted to president in the reshuffle are in the B2B business arena. The reshuffle indicates the group’s determination to change its fundamentals, with a focus on shifting into B2B businesses. Despite the business uncertainties, the latest reshuffle promoted more executives than last year.

Former LG Electronics Vice Chairman Koo, who was at the helm of LG Electronics for some five years since late 2010, has been credited for resurrecting the smartphone business, which had trailed Samsung Electronics by wide margin. Now it has rejoined the ranks of premium segment leaders by releasing a series of “G” smartphones and launching the world’s first OLED TV. 

Koo has been praised for making many feats in the new B2B business areas, too, including the automotive part business. LG Electronics, which acquired the automobile design company V-ENS in 2013, made strides in the automotive parts business. Of late, the Korean electronics leader struck a deal to provide 11 kinds of core electronic vehicle parts to GM. LG Electronics saw order backlogs in the automotive parts business stand at more than 10 trillion won, and the company has upgraded its technology prowess in the photovoltaic power business by putting products with the world’s highest efficiency rate of 19.5 percent. 

Vice Chairman Koo’s strong leadership is needed to change the business-to-consumer paradigm into a B2B vision, a ranking group official said. 

LG Group’s latest reshuffle may be construed as the group’s move to accelerate a generational shift, some business analysts said. Group Chairman Koo Bon-moo, now 70 years of age, is still engaged in active management activities, but the group has to brace for a new era. The reason behind the generational shift scenario is that Vice Chairman Koo may groom Group Chairman Koo’s son Kwang-mo, 37, vice president of LG Corp., as an heir-apparent to succeed Chairman Koo, according to business sources. 

LG Display President Han and LG Chem President Kwon are the executives who have been promoted to vice chairman. Han is credited for leading LG Display into the profit territory for the 14th consecutive quarter and putting the OLED business on a right tract, while Kwon is praised for raising the EV battery business to the world’s No. 1 leader. Kwon is appointed to be the CEO of LG U+.

The business group promoted eight executives to president for making achievements regardless age and status, three more than last year. Among the new presidents are LG Corp. President Baek Sang-yeop, head of LG Corp.’s Synergy Team; President Hong Sun-kook, president of the Materials and Production Technology Institute at LG Electronics; LG Electronics President Lee Sang-bong in charge of B2B business; LG Chem President Sohn Ok-dong in charge of the basic materials business; and LG Chem President Kim Myung-hwan, who heads the battery research institute. 

With LG Electronics Vice Chairman Koo’s transfer to the holding company LG Corp., LG Electronics has now changed into a “triumvir” system in which three CEO and presidents are charged with each division of LG Electronics, as is the case with Samsung Electronics. They are President Chung Do-hyun, serving as CFO; President Cho Joon-ho in charge of the Mobile Consumer Business Division; and President Cho Sung-jin of the Home & Appliance Business Division. President Lee Woo-jong of the VC Business Division and President Kwon Bong-suk of the Home Entertainment Business Division have been retained. LG Electronics President Park Jong-seok and LG Innoeck President Lee Woong-beom have been transferred to LG Innotek and LG Chem’s battery business division, respectively.