Jo Ju-wan LG Electronics CEO "Focus on Growth Opportunities Especially in Times of Crisis"

Last Member Communication Event of the Year
"Analyze Unstable Market Conditions, Achieve Sustainable Development"
On China's Pursuit: "Secure Structural Competitiveness"
Announced 2nd Value-Up Program the Day Before
761,000 Treasury Shares to Be Cancelled

Jo Joo-wan, CEO and President of LG Electronics, urged employees during an official communication event to "focus on discovering growth opportunities in times of crisis and navigate wisely."

Jo Joo-wan, CEO of LG Electronics, held the CEO F.U.N. Talk on the 17th at the LG Twin Towers in Yeouido, Seoul, to wrap up the year and shared in detail with employees the changes in the global business environment the company will face in 2025 and the business strategy directions to respond to them. He stated, "A crisis is a word that combines danger and opportunity," and urged, "In times of crisis, we will focus on discovering growth opportunities and navigate wisely." Photo by LG Electronics

According to LG Electronics on the 18th, Jo shared the company's business strategy directions for the next year with employees at the 'CEO F.U.N. Talk' event held the previous day at the LG Twin Towers in Yeouido, Seoul, and made these remarks.

CEO F.U.N. Talk is a communication event created by Jo after his appointment. It was established to have transparent and sincere conversations with employees. The final session of this year was held under the theme "REINVENT for Sustainable Growth, Breaking Limits to Secure Structural Competitiveness." About 10,000 employees participated both online and offline.

First, Jo reviewed the changes in the global business environment the company will face next year, emphasizing that "a crisis is a word combining danger and opportunity." He stressed the need to thoroughly analyze and respond to the current unstable market and competitive situation and achieve continuous development in all areas.

He particularly shared in-depth opinions with employees on comprehensive analysis and proactive response strategies regarding the expanding uncertainties in the global business environment due to internal and external policy changes, as well as the rapidly growing competitiveness of Chinese companies. Regarding market uncertainties, Jo said, "The global economy is shifting from the geopolitical era to the geo-economic era," adding, "Until now, there were orders and rules applicable in the global market, but going forward, the standard situation will be fierce competition for survival in a world without orders and rules." On the growth of Chinese companies, he stated plans to secure structural competitiveness in terms of products, costs, and operations and to examine the business more meticulously to respond thoroughly.

Jo then explained the difficult internal and external environment, including intensified competition, global inflation, and global supply chain issues, emphasizing that qualitative growth and a sound profit structure require a level of consideration and intense execution different from the past. He also stressed the need to carefully review strategies to enhance productivity and work efficiency, urging, "Everyone should achieve rediscovery beyond habitual thinking to produce outstanding results."

Reflecting on the past three years as CEO, Jo said, "If we prepare thoroughly and respond calmly with a mindset of preparing for the worst and aiming for the best, considering scenarios for the worst situations, we will definitely overcome the crisis."

Meanwhile, LG Electronics announced the day before a second corporate value enhancement plan (Value-Up Program) that includes the cancellation of approximately 761,000 treasury shares next year to enhance shareholder value. According to the plan, LG Electronics expects a positive effect on shareholder value by increasing earnings per share (EPS) and book value per share (BPS) through the cancellation of treasury shares. The canceled shares amount to 0.5% of the total shares issued by LG Electronics. Additionally, LG Electronics shared its business goals and strategies. Regarding the ongoing initial public offering (IPO) of its Indian subsidiary, it explained that on the 6th, it submitted the draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The final listing decision will be made after reviewing market conditions and preliminary demand forecasts.