LG Group grabbed headline in its annual year-end reshuffles by changing its chairman for the first time in 23 years. Chairman Koo Kwang-mo, in his 40s, appointed Kwon Young-soo to be vice chairman of LG Corp., the holding company of the group, after he took office.

On Nov. 9, Chairman Koo replaced LG Chem Vice Chairman Park Jin-soo with Executive Vice Chairman Shin Kak-cheol of 3M in what was called an outside injection of blood. The replacement touched off a stream of speculation that more vice chairmen would be changed

But Chairman Koo chose to ensure stability. He decided to retain most of the vice chairmen, who proved to have right stuffs to survive uncertainties, feared by possible outside and inside economic recessions.

 Logged 6.5 percent growth in Q3 2018, the lowest growth rate in years. Germany and Japan also saw their growth rates lose ground. The United States, which enjoyed a sole growth surge, is forecast to have a lower growth rate starting next second half.

Chairman Koo’s decision to retain most vice chairmen was believed to be owed mostly to major subsidiaries’ better business performances. LG Electronics and LG Household & Health Care are predicted to chalk up the best-ever business performances during the whole of this year.

Despite the government’s pressure to lower communications charges, LG Uplus is forecast to post moderate business performances. Chances are high that LG Display could post an operating loss this year. The expected underperformance is believed to be attributable mostly to outside factors such as business cycle and global competition vehement.

Chairman Koo is known to have a strategy of not only ensuring stability, also accelerating change. Rumors have circulated that most team chiefs of LG Corp. would be replaced. Heads of each team of LG Corp. are filled with senior executive vice presidents and executive vice presidents from subsidiaries.

In July, LG Chem CHO Lee Myung-gwan was appointed personnel team head of LG Corp., heralding a sweeping reshuffle.

Business analysts said Chairman Koo is believed to stress the stability of subsidiaries. There is a high probability Chairman Koo will redesign future business portfolios with new people and ideas.

A view of LG Twin Tower in Yeouido,Seoul. (Photos: LG Group)