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| ▲ An LG employee walks inside LG Science Park, western Seoul, on July 7, 2023. (Yonhap) |
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| ▲ This file photo provided by LG Electronics Inc. on July 13, 2021, shows the company's new indoor-outdoor delivery robot. (PHOTO NOT FOR SALE) (Yonhap) |
LG Electronics-biz vision
LG Electronics vows to reinvent itself as 'smart life solutions' provider
SEOUL, July 12 (Yonhap) -- LG Electronics Inc. unveiled a new vision for its business on Wednesday to turn itself into a "smart life solutions provider," as the traditional home appliance market has been going through rapid changes.
The South Korean tech company said it will put more focus and resources into non-hardware products, such as smart home business and webOS, LG's own smart TV operating system, and business-to-business solutions, including electric vehicle (EV) parts business.
LG also said it will continue to expand its footprint in what it defines as new growth areas, such as digital health care and electric charging stations.
Under the new vision, the company plans to increase annual revenue levels to 100 trillion won (US$77.3 billion) by 2030, from around 65 trillion won last year.
LG said it will try to raise the proportion of the three sectors up to 50 percent of its business portfolio by that year.
"We are not going to settle for the best home appliance maker, but will make a leap forward in becoming a smart life solution company, which connects consumers' spaces and experiences," LG Electronics CEO Cho Joo-wan said at a press conference, held at LG Science Park in western Seoul.
The move came amid lingering global economic uncertainties and changes in household appliances market trends, especially on the heels of the COVID-19 pandemic.
LG said its business has reached an inflection point, with growing importance of customer service, digitalization and electrification of traditional home gadgets and automobiles.
In the past few years, LG has sought to diversify its business portfolio and been shrewd in making decisive business decisions to stay competitive in the rapidly changing tech environment.
Having exited the smartphone business in 2021, the company put more resources in EV components, connected devices, smart homes, robotics and artificial intelligence (AI).
LG said in late May it was working with Canadian AI computing startup Tenstorrent to develop chips that could potentially power LG's smart consumer appliances and automotive products. About a week earlier, LG announced it started mass production of EV chargers.
In April, the company launched a new brand campaign as part of efforts to adapt to changing consumer tastes and market conditions, and to be ready to make touchpoints to better engage with consumers.
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