LG Electronics Spins Off External Venture... Diversifying Growth Engines Through New Business Initiatives

LG Electronics' external venture EDWO is establishing a non-face-to-face fashion platform and officially launching the 'Hidden Fitter' service, which helps customers find the optimal size and fit tailored to their body shape online.

[Photo by LG Electronics]

[Asia Economy Reporter Ki-min Lee] LG Electronics is diversifying its future growth engines by spinning off projects based on employees' innovative ideas into external ventures.

LG Electronics announced on the 17th that it recently spun off projects deemed commercially viable, including preparations for future businesses, into external ventures. This external venture is the first case where LG Electronics employees collaborate with external accelerators providing startup consulting to discover and commercialize new business opportunities. LG Electronics conducted this project in cooperation with FuturePlay, a startup nurturing company.

The external venture spun off earlier this year was named 'EDWO (Eternal Delight, Wonderful Odyssey)' with the aspiration to "continue a wonderful journey where great joy unfolds endlessly."

The company is set to officially launch the 'Hidden Fitter' service, which builds a non-face-to-face fashion platform suited to the new normal era, helping customers find the optimal size and fit for their body shape online.

LG Electronics plans to support this business not only with active investment but also by providing various technological capabilities and networks the company possesses to ensure its successful establishment.

Starting with this case, LG Electronics intends to actively foster new businesses based on customer value and creative organizational culture, including both internal and external ventures.

At the end of last year, LG Electronics introduced the internal venture program 'LGE Adventure' and selected two final teams. If the final results of LGE Adventure are deemed commercially viable, the teams can either proceed with the business within the company or become independent as external ventures.

Moreover, LG Electronics allows employees moving to external ventures to return to the company within five years if they wish. LG Electronics explained that this policy encourages new challenges within the company and aims to share the experiences gained from running venture companies with employees.

Wooramchan, Executive Director of LG Electronics Business Incubation Center, said, “We will actively adopt internal and external ventures based on innovative ideas from employees to continuously discover new customer values and create a creative organizational culture.”