2025 Organizational Restructuring and Executive Appointments
Promotions Including 1 President and 4 Vice Presidents
Kim Young-rak Promoted to President of Korea Sales Headquarters
LG Electronics announced on the 21st that it has carried out an organizational restructuring and executive appointments for 2025. The organizational restructuring is characterized by the reorganization of business divisions with a focus on accelerating the company-wide mid- to long-term strategy, '2030 Future Vision,' and the executive appointments were made considering the potential to enhance the mid- to long-term competitiveness of the business.
LG Electronics reorganized its existing four business divisions?H&A (Home Appliances), HE (Home Entertainment), VS (Vehicle Components Business), and BS (B2B Business Division)?into HS (Home Appliance Solutions), MS (Media Entertainment Solutions), VS (Vehicle Solutions), and ES (Eco Solutions) business divisions, respectively, redefining their roles and names.
An LG Electronics official explained, "To drive the full-scale growth of the HVAC (Heating, Ventilation, and Air Conditioning) business, which plays a key role in accelerating B2B, we established a new business division and newly assigned the overseas sales division as the overseas B2B control tower. To expand platform-based service businesses in earnest, we integrated display-based businesses such as TV, monitors, and signage to create synergy, and businesses being nurtured as new growth engines were decisively reassigned to business divisions with stable support capabilities and high inter-business relevance."
Employees are heading to work at the LG Group headquarters in Yeouido, Seoul, on the 21st, ahead of the LG Group's executive reshuffle and organizational restructuring. Photo by Kang Jin-hyung
First, the H&A Business Division will be renamed the HS Business Division in line with its goal of "enhancing the value of life through liberation from household chores." The Platform Business Center, responsible for planning, developing, and operating LG ThinQ, will be placed directly under the division, leading AI home solution businesses that care for customers' lives beyond the home. The robot business under the existing BS Business Division will be transferred, creating synergy with home-area robot capabilities such as robot vacuum cleaners and mobile AI home hubs. Ryu Jae-cheol, the current head of the H&A Business Division, will continue as the head of the HS Business Division.
The HE Business Division will be renamed the MS Business Division to align with its vision as a media & entertainment platform company. The IT (notebooks, monitors, etc.) and ID (signage, etc.) divisions from the existing BS Business Division will be transferred and integrated with the TV business to create synergy between hardware and platforms. Park Hyung-se, who has led the transformation of the TV business into a media & entertainment platform company, will serve as the head of the MS Business Division.
The MS Business Division will rapidly expand webOS-applied products, which were previously centered on smart TVs, to monitors, signage, and vehicle infotainment, thereby broadening the scope of platform-based service businesses. webOS will be developed as an integrated indoor and outdoor content and service platform. In particular, TV, IT, and ID products share similar value chains in development, procurement, and production, which is expected to enhance competitiveness through synergy among products and improvement of business structures.
The VS Business Division will change its name from Vehicle Component Solutions Business Division to Vehicle Solutions Business Division to clarify its role in providing innovative solutions across the entire vehicle, beyond just supplying vehicle parts. Vice President Eun Seok-hyun will continue as the head of the division.
The newly established ES Business Division is an organization separated from the existing H&A Business Division to form an independent business division for the HVAC business, which has been a key pillar of company-wide B2B growth. This aims to accelerate the leap toward becoming a global top-tier comprehensive air conditioning company. The ES Business Division will also take over the electric vehicle charging business from the existing BS Business Division and push for early scaling into a unicorn business with sales exceeding 1 trillion KRW. Accordingly, the ES Business Division will play a crucial role in accelerating B2B business growth in LG’s clean tech sector, one of the company’s future growth engines. Lee Jae-sung, the current head of the Air Solution Business Unit, will serve as the new head of the ES Business Division to maintain continuity in HVAC business and strategy.
Along with this, LG Electronics promoted a total of 42 executives (including 1 from LG Magna Powertrain): 1 president, 4 vice presidents, 8 executive directors, and 29 managing directors.
Kim Young-rak, head of the Korea Sales Division, who actively expanded the home appliance subscription business model combining products and services in the Korean market and achieved results in the direct-to-consumer (D2C) business based on an online brand shop, was promoted to president.
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