[New Year's Address] Jung Ho-young, LGD President, "To Overcome Crisis, 'Business Structure Advancement' Is Necessary"

New Year's Address to Employees on the 2nd
Emphasizing Business Structure Advancement and Customer Value Innovation

Jung Ho-young, President of LG Display.
[Photo by LG Display]

[Asia Economy Reporter Han Yeju] Jung Ho-young, CEO of LG Display, emphasized, "Let's overcome the immediate crisis and create a historic turning point in the advancement of our business structure."

In his New Year's address on the 2nd, CEO Jung stated, "We are in a structural and fundamental transformation period in the display industry. Unlike the past, where recovery and rebound appeared after some time despite difficult market conditions, the current situation is on a completely different level." He also forecasted that due to unprecedented market demand decline and price drops, significant difficulties are expected to continue through the first half of this year.

Accordingly, CEO Jung presented 'advancement of business structure' as the most important task to create fundamental change.

Regarding order-based businesses, he explained that these are businesses that can operate investment, logistics, and pricing stably based on contracts with customers. Vehicle displays and smartwatches are representative examples, and LG Display is also developing such business models in small- and medium-sized OLEDs.

CEO Jung said, "Over the past three years, we have expanded the proportion of order-based business in total company sales to 30%, but to achieve continuous growth and profit generation without being heavily affected by market conditions, we must increase this ratio beyond 50% in 2024 and ultimately over 70%. To this end, innovative and differentiated technologies and products, strategic order acquisition activities, as well as timely production and supply of ordered products are essential."

He pointed out that for supply-demand based businesses, rational adjustment of operating scale considering market demand is a prerequisite, but given future potential, it remains an important area. He urged to transform the structure by focusing on core customers and premium products, turning future opportunities for resurgence into reality.

He pledged to also pursue market-creating businesses that only LG Display can undertake with a long-term perspective. For businesses with high growth potential such as transparent OLED, he stated the intention to discover and continuously nurture potential customers through new and diverse attempts.

CEO Jung emphasized that the advancement of business structure must start with 'customer value innovation.' He said, "Customer value innovation must consider not only trading partners but also the experience of end consumers, and we must thoroughly keep promises in all aspects of customer experience including products, technology, delivery, and quality, evolving to a level that exceeds customer expectations."

Finally, CEO Jung added, "Let us face challenges with composed confidence and drive innovation with a proactive attitude. Let 2023 be a historic turning point to overcome the immediate crisis and build a structure where corporate value and member value can continuously grow and develop based on customer value innovation."