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LG reorganization creates separate HVAC division

LG reorganization creates separate HVAC division

SEOUL, South Korea — LG Electronics announced a series of organizational changes and executive appointments following approval by the company’s board of directors.

The restructuring is aimed at accelerating the implementation of the company’s medium- and long-term strategy “Vision 2030” by enhancing inter-organizational synergies and updating its business portfolio, the company said in a press release.

The restructuring will realign LG’s business operations to maximize the potential of existing businesses, strengthen service operations, accelerate B2B initiatives and drive growth in promising sectors, the company said.

To lead this transformation, LG has appointed qualified individuals with exceptional experience, emphasizing enhancing the company’s long-term competitiveness through the development of high-performing organizations, the press release said.

A new company will be created to support the growth of LG’s HVAC business, a critical component of LG’s B2B acceleration strategy. Overseas Sales & Marketing Co. will now function as an overseas B2B control tower. Additionally, display-based operations, including TVs, monitors and signage, will be integrated to drive synergies and expand the platform-based services business. New growth engines will be strategically relocated to companies with greater business relevance.

LG has restructured its four companies into Home Appliance Solution Company (HS), Media Entertainment Solution Company (MS), Vehicle Solution Company (VS) and Eco Solution Company (ES).

H&A Co. will be renamed HS Co. to align with its vision of “Zero Labor at Home, Quality Time.” To support this vision, LG will transfer the Platform Business Center, responsible for planning, development and operation of LG ThinQ, to HS Co. The purpose of this reorganization is to transform HS Co. into a leader in artificial intelligence (AI) solutions in various fields. premises, the company reported. Lu Jae Chul will continue to lead HS Co.

HE Co. will change its name to MS Co. to align with its goal of becoming a media and entertainment powerhouse. The company said it will combine BS Co.’s display and information technology businesses with its television business to create synergies in hardware and platform operations. Hyun-sei Park will continue to lead MS Co.

Vehicle Component Solutions Co. will change its name to Vehicle Solution Co. Eun Suk Hyun will continue to lead the company.

ES company was recently established. HVAC Division, formerly part of H&A Co. and a significant contributor to LG’s B2B growth, will now operate as a separate entity under the name ES Co. Lee Jae Sung, current head of Air Solution Business, will lead ES Co.

Given the project-based nature of the HVAC business and the specific characteristics of the market and its customers, LG determined that operating as an independent company would maximize competitiveness and growth potential, LG said in a press release.

In addition, ES Co. will take over responsibility for BS Co’s electric vehicle charging business.

Meanwhile, LG will create a B2B business enablement division within Overseas Sales & Marketing Co.

The Chief Strategy Office (CSO), acting as the control tower for LG’s future strategy, will also oversee the acceleration of artificial intelligence and respond to global developments in artificial intelligence. The main digital office, previously responsible for digital transformation, will be reorganized into a DX center. The DX center will focus on improving business performance using generative artificial intelligence technologies. It will be headed by Cho Jung Bum.

The executive appointments are aimed at selecting diverse talent with proven experience in sales, services and research and development, the company said. Jung Pil Won, currently heading the Overseas TV Sales and Marketing Group, has been appointed as representative for the Middle East and Africa region. In addition, Kim Jung Ho, Kim Yoo Seong and Choi Jung Won, who head subsidiaries in Saudi Arabia, Poland and Malaysia, respectively, are promoted to senior positions.