[CEO Rivals] Securing the Group's Next-Generation Growth Engines... Kwon Young-soo VS Shin Hak-cheol

Common Traits on the Path to Success from New Employee to Vice Chairman
Kwon, Growth at LG... Mastery of Electronics, Telecommunications, and Battery
Shin, Former 3M Executive... Outstanding Global Insight

Starting their careers as employees, more than forty years later, they both rose to the position of vice chairman within the group. Subsequently, they were appointed as heads of their respective industry associations, becoming the undisputed faces representing their sectors.

This is the story of Kwon Young-soo, Vice Chairman of LG Energy Solution, who leads the next-generation materials and components sector at LG Group, and Shin Hak-cheol, Vice Chairman of LG Chem. Vice Chairman Kwon began as a new employee at LG Electronics and has grown into a prominent LG executive. In contrast, Vice Chairman Shin is an overseas recruit brought in from outside LG, symbolizing the company's shift away from its traditional pure-blood system.

Although both have traveled successful paths, their journeys are entirely different. However, they share similarities in business insight, drive, communication with employees, and inclusiveness, matching each other closely. They also share the commonality of being the same age. While not few, these two men symbolize LG's tradition and change, making them rivals in a non-rivalrous relationship.

Vice Chairman Kwon Young-soo was born in February 1957 in Seoul. He graduated from Kyunggi High School and Seoul National University with a degree in Business Administration. In 1979, he joined Geumseong Corporation (now LG Electronics) and simultaneously pursued graduate studies in Industrial Engineering at KAIST (Korea Advanced Institute of Science and Technology).

At his first workplace, Vice Chairman Kwon gained experience across key domestic and international business sectors. He served as a manager at the Americas branch, then held positions in finance, management support, and as head of the finance team, before becoming President of LG Electronics' Finance Division in 2006.

The story of his appointment as CEO of LG Philips LCD, which was operating at a loss, and turning it into a 1.5 trillion KRW profit in his first year is still widely discussed. He led LG Display until 2011, growing it into the industry's top company. At that time, he implemented a management philosophy of 'growth without investment' through maximizing productivity. From 2009 to 2012, he served as the second president of the Korea Display Industry Association, laying the foundation for a strong display industry.

During his tenure as display CEO, he was known as an 'apostle of listening and consideration.' Believing in direct communication with employees, he did not have an executive secretary and worked in Seoul on Mondays, Gumi on Tuesdays and Wednesdays, and Paju on Thursdays and Fridays. His principle was, "There is only one president, but dozens of people need to report. It is more efficient for one person to move rather than many."

His dream of "creating a workplace you want to go to when you open your eyes in the morning" became a reality. Representative programs included university visits and entrance exam lectures for employees' children, wedding car support for in-house couples, first baby care programs, heartfelt events inviting parents and filial piety tours, and arranging group meetings under the 'Gahwa Mansaseong' program.

Following his display sector success, his next move was into batteries. In November 2011, just days before the LG Group executive reshuffle, the late Chairman Koo Bon-moo urgently summoned Vice Chairman Kwon. Chairman Koo reportedly told him, "This time, you should move to LG Chem to oversee electric vehicle batteries and secondary battery business. Please grow the battery business to be the world's best, just like LCD."

From 2012, he served as head of LG Chem's battery business division, securing orders from global automakers such as Audi, doubling the number of electric vehicle battery clients from about 10 to 20 within two years. This experience deepened his understanding and insight into the battery business. In 2015, he was appointed Vice Chairman and CEO of LG Uplus. Despite the stagnant mobile communications market, he achieved 13 million subscribers by 2017.

After Chairman Koo's passing in 2018 and LG Group's reorganization under Chairman Koo Kwang-mo, he was appointed COO (Chief Operating Officer) of the holding company.

Serving closely alongside Chairman Koo, he became the undisputed 'number two' within the group. His current return to the frontline is in the battery sector. In November 2021, he returned as Vice Chairman and CEO of LG Energy Solution, demonstrating his management capabilities.

Last year, LG Energy Solution achieved sales of 25.6 trillion KRW, growing to the world's second-largest market share. It operates joint production ventures with automakers in the US and Europe, establishing itself as a leading battery company overseas. Additionally, he created the employee communication channel 'EnTalk,' using it as a platform for ongoing communication management. In February, he was appointed chairman of the Korea Battery Industry Association.

While Vice Chairman Kwon built his major career within LG Group, Vice Chairman Shin Hak-cheol is an overseas recruit.

Born in August 1957 in Goesan, Chungbuk, the son of a farmer, Vice Chairman Shin graduated from Cheongju High School and Seoul National University with a degree in Mechanical Engineering, chosen because it was considered a field with good employment prospects. His first job was at Poongsan Metal, a defense contractor, in 1978. In March 1984, he moved to 3M Korea as a regular employee and, after 27 years, in 2017, became the first Korean to be appointed Senior Vice President, one of 3M's top executives.

He is a 'model student' who starts his day early, beginning work at 4 a.m. by monitoring global economic trends. During his seven years in Korea, he was rapidly promoted due to outstanding performance. Noticing this, headquarters appointed him as head of 3M's Philippines branch in 1995, despite his lack of overseas training experience. At that time, the Philippines branch was on the brink of business withdrawal due to severe labor disputes. He succeeded in resolving conflicts by conducting individual interviews with all 700 employees, proving his management skills once again.

Later, in 1998, Vice Chairman Shin joined 3M's headquarters in Minnesota, USA. Before leaving for the US, he recalls a memorable moment in his career when Philippine employees held a surprise farewell party, singing songs for his success and family, shedding tears together. It was a moment of bonding beyond nationality as one member of the team.

Vice Chairman Shin continued to excel at headquarters, overseeing 3M's major industrial products such as abrasives, tapes, and chemicals, managing overseas business outside the US, and holding key positions in R&D, strategy, and business development. He is recognized for his global business operation capabilities and experience, as well as his knowledge and insight into the materials and components business.

His direct connection with LG began in 2018. Ahead of the first executive reshuffle by LG Group Chairman Koo Kwang-mo, who took office in June 2018, Vice Chairman Shin was recruited. It is known that Chairman Koo, having worked at the New Jersey branch in the US, took notice of Vice Chairman Shin and extended the recruitment offer before the executive appointments.

[Image source=Yonhap News]

LG Chem, founded in 1947, had never before appointed an external executive, making this a significant shock. The public regarded it as a groundbreaking appointment breaking the pure-blood system, symbolizing the group's transformation. The responsibilities entrusted to him are as heavy as the expectations.

After spinning off the battery division (LG Energy Solution), LG Chem is busy preparing its next growth engines. It plans to invest 10 trillion KRW by 2025 in three new growth sectors: battery materials, eco-friendly materials, and global new pharmaceuticals. As chairman of the Korea Petrochemical Industry Association, a position he began earlier this year, he also faces the challenge of addressing issues in the stagnant petrochemical industry.