LS Group Chairman Christopher Koo gives his New Year’s message for the year 2021 on Jan. 4.

LS Group Chairman Christopher Koo delivered his New Year’s message for the year 2021, in which he called for the company to prioritize cash creation-oriented management.

As he presented four core management goals for this year at the message delivered on Jan. 4, Chairman Koo pledged to take the utmost efforts to convert a crisis facing the business group to a new opportunity and make LS Group into a sustainable growth company.

The following is the gist of his speech.

Last year, we achieved significant success, big and small, thanks to your executives and staff members’ dedication and efforts despite corporate hardships caused by an unprecedented COVID-19 pandemic.

LS Cable & System (LS C&S) increased undersea cable orders and sales while LS Nikko-Copper secured a stable supply of raw materials.

LS Mtron improved profit-taking structure. They did their best to minimize the negative effects of the pandemic.

LS ELECTRONIC converted its power and automation businesses into a company-in-company (CIC) structure to meet the changes of industry trends. E1, Yesco and other subsidiaries added and operated new growth engines, such as renewable energies.

But as travel between nations was restricted and the global economy came to a virtual standstill, our activities were limited. Entering this year, there was news of hope on the development of vaccines to end the pandemic, but the economy is unlikely to rebound in a short period of time.

In particular, financially strapped developing countries are in danger of the effects of economic and financial risks, and excessive liquidity and future uncertainties are predicted to stoke real asset and monetary fluctuations. We’re expecting new opportunities to arise after facing this crisis.

LS Group will have to do its best to make LS a sustainable growth company. To this end, we should strongly push ahead with four core goals for this year.

First, we have to attach top priority to cash creation-oriented management so that we can invest into futuristic new businesses to brace for uncertainties of the global economy.

Cash creation, such as the expanded sale of highly profitable products and the improving the efficiency of operating inventory and bonds, should be recognized as one of major management indices.

Second, LS should bear tangible fruits in its future growth engine businesses, such as renewal energy and eco-friendliness.

We have to advance tangible outcomes in new businesses such as photovoltaic power-ESS system, smart gird and EV parts, contribute to promoting public benefits, and build a virtuous cycle in which companies promote sustainable growth with society.

Third, overseas operations need to be armed with their own capabilities to raise the stability of overseas businesses and global competitiveness.

To this end, overseas entities should secure and nurture local gifted manpower as well as upgrade management systems the way they are operated systematically.

Lastly, we have to shift digital-based operation system in a fast pace by accelerating digital transformation activities. Digital transformation has emerged as an essential task, not a selective one in the wake of the latest technology development and the COVID-19 pandemic.

We have to expand investments into cloud, other IT infrastructure and expertise manpower, and shift all executives and staff way of working and thinking to be digitally based.

Submarine cables, produced by LS Cable and System, are loaded at Donghae port near a LS C&S site in Donghae City. (Photos: LS Group)