Comprehensive Support for Business Infrastructure Development
Establishment of Institutional Measures Including Differentiated Compensation Systems
[Asia Economy Reporter Choi Seoyoon] LG Energy Solution is organizing and operating in-house independent companies (Company-in-Company·CIC) to expand its battery business ecosystem. This allows for the rapid and agile promotion of new businesses by organizing independent companies that can discover future growth new businesses.
On the 5th, LG Energy Solution announced the launch of two in-house independent companies, ‘KooRoo’ and ‘AVEL’. KooRoo and AVEL plan to officially start their respective businesses related to BaaS (Battery as a Service) and EaaS (Energy as a Service) from this month.
BaaS refers to a business model that provides various services based on data generated throughout the battery lifecycle. EaaS refers to a business model that helps optimize power grids by utilizing distributed renewable energy resources and energy storage systems (ESS).
KooRoo will promote business related to BSS (Battery Swapping Station). BSS is a service that greatly enhances user convenience by allowing electric two-wheelers to use battery packs through swapping instead of charging. KooRoo plans to prioritize the development of BSS-dedicated battery packs and stations, and later expand the electric two-wheeler ecosystem by utilizing collected usage data.
AVEL will promote the Energy Aggregation (EA) business for integrated energy grid management. Initially, it will focus on integrated management of renewable energy power grids using ESS and other resources centered around the Jeju region. In the future, it plans to develop a system that can accurately predict renewable energy generation and efficiently utilize and manage energy stored in ESS.
LG Energy Solution: ‘A Company Where Individuals and the Company Grow Together’
Through this CIC, LG Energy Solution expects to discover future growth engines that can enhance customer value and provide opportunities for members who want to lead new business initiatives and operate independent companies, thereby further embodying the image of ‘a company where individuals and the company grow together.’
In fact, LG Energy Solution has established various institutional measures to ensure the independent operation and stable settlement of CICs.
First, CICs are operated as thoroughly independent organizations under the Chief Strategy Officer (CSO) at the initial launch stage, while receiving comprehensive support from related business divisions to quickly build business operation infrastructure.
CIC leaders selected through a strict screening process use the title ‘Representative’ both inside and outside the company. CIC representatives autonomously manage all aspects of organizational operation, including organizational structure, member selection, working hours, and workspace, to ensure the organization is agile and nimble. CIC members are also allowed to freely use titles according to their positions.
Additionally, a differentiated compensation system distinct from existing organizations has been established during the operation process, and separate, exceptional compensation plans will be actively considered in the event of a CIC spin-off (company division) in the future.
LG Energy Solution CEO Vice Chairman Kwon Young-soo said, “I hope the newly launched in-house independent companies will not fear failure and will enhance future customer value through innovative thinking and challenges,” adding, “We will continue to strive to become ‘a company where individuals and the company grow together’ through more attempts such as expanding the launch of in-house independent companies.”
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