[Click e-Stock] "LG Electronics, Organizational and Business Division Restructuring... Focus on Future Strategy"

On the 22nd, KB Securities evaluated LG Electronics, stating that "the organizational restructuring and executive appointments conducted the previous day focused on enhancing synergy between organizations and accelerating the portfolio innovation strategy by emphasizing capabilities and expertise."

On the same day, Dongwon Kim, a researcher at KB Securities, stated, "Focusing on mid- to long-term future strategies, the executive appointments were made with promotions centered on sales experts."

CEO Joo-wan Cho was retained, and a total of 42 people were promoted, including Young-rak Kim, head of the Korea Sales Headquarters, who was the only one promoted to president in this round. Born in 1966, Head Kim was recognized for his contributions through achievements such as expanding the home appliance subscription business model in the Korean market and the D2C (Direct-to-Consumer) business based on the online shop.

LG Electronics reorganized its existing business divisions of H&A (Home Appliance & Air Solution), HE (Home Entertainment), VS (Vehicle Components Business), and BS (B2B Business Unit) into ▲HS (Home Appliance Solutions) ▲MS (Media Entertainment Solutions) ▲VS (Vehicle Solutions) ▲ES (Eco Solutions) business divisions.

Researcher Kim explained, "The HS business, which accounts for 37% of total sales and 61% of operating profit, continues to maintain competitiveness despite a slowdown in consumer home appliance demand and increased volatility in logistics costs," adding, "The business structure has changed through the expansion of new platform businesses such as web OS (operating system) and subscription appliances, and an increase in the proportion of B2B (business-to-business) sales, which has mitigated profit volatility compared to the past." He forecasted that next year's performance will see sales of 89.4 trillion KRW and operating profit of 4.1 trillion KRW, representing increases of 1.8% and 12.8%, respectively, compared to the same period this year.