Kwon Bong-seok Likely to Become LG CEO... 'Gu Kwang-mo Administration' Sets Sail for Reform

Regular Executive Personnel Changes on the 25th, LG Electronics CEO Mentioned as Jo Joo-wan CSO

Kwon Bong-seok, President and CEO of LG Electronics [Photo by LG Electronics]

[Asia Economy Reporters Choi Dae-yeol, Kim Heung-soon] As LG Group is set to carry out its regular executive reshuffle on the 25th, there is a growing expectation that Chairman Koo Kwang-mo’s 'selection and concentration' strategy will be fully implemented as he enters his fifth year in office next year. New CEOs are expected to be appointed at major group affiliates such as LG Electronics and LG Corporation, with a focus on promoting executives who have demonstrated clear achievements, signaling a personnel renewal.

According to business circles on the 23rd, Kwon Bong-seok, the current CEO of LG Electronics, is considered the leading candidate to become the CEO of LG Corporation, the holding company of LG. Kwon is expected to take on the role of LG’s Chief Operating Officer (COO), succeeding Vice Chairman Kwon Young-soo, who moved to become CEO of LG Energy Solution.

Kwon joined Geumseong Corporation (now LG Electronics) in 1987 as part of the business planning office. He served as head of the monitor division in 2001 and as head of the European Wales production subsidiary in 2005. In 2007, he led the newly established monitor business division, contributing to LG Electronics’ LCD monitors reaching the world’s number one position. In 2014, he was appointed head of the LG Synergy Team at LG Corporation, responsible for creating convergence synergies among LG Group affiliates. It is known that he formed a connection with Chairman Koo, who worked as a team leader in the Synergy Team at that time.

In addition, Kwon served as Vice President and head of LG Electronics’ HE Business Division, responsible for the TV business, starting in 2015, successfully establishing OLED TVs in the market. He was appointed CEO of LG Electronics at the end of 2019. This year, he led structural reforms by winding down the struggling mobile phone business, considered LG Electronics’ 'pain point,' and strengthening the automotive components business, identified as a future growth area. In the third quarter, LG Electronics achieved a record quarterly sales exceeding 18 trillion won, driven by strong performance in its core home appliance sector. Along with Kwon’s move, Cho Joo-wan, LG Electronics’ Chief Strategy Officer (CSO), is being strongly considered as his successor.

There is widespread speculation that Vice Chairman Shin Hak-cheol, CEO of LG Chem (formerly Lak-Hui Chemical Industrial Corp.), regarded as the foundation of LG Group, will be retained. Shin, who joined LG in 2018, has a board term ending in March next year, but given the ongoing comprehensive structural reforms across the business, it is highly likely he will continue to hold the reins. This is because the environment and conditions surrounding the traditional chemical industry are rapidly changing, and it is essential to stabilize various new businesses currently underway.

The company, ranked first domestically and within the top 10 globally among chemical companies, announced in July plans to invest 10 trillion won over five years in ESG (Environmental, Social, and Governance)-based businesses. While transitioning its plastic materials and raw materials business toward eco-friendly materials, it also requires a long-term vision to lead the company in promising growth areas such as battery materials and biotechnology.

Having achieved record-high performance and resolved quality issues that arose from battery lawsuits, fires, and recalls since his appointment, Shin is also regarded as having earned strong trust both inside and outside the company during the LG Energy Solution spin-off process. Given that 3M, where Shin worked for decades before joining LG, is recognized as an innovative and youthful company, Chairman Koo is said to have judged Shin as the right person to improve LG Chem’s corporate structure.