"More Than Just a Hardware Journey"
Sales Target Raised to 20 Trillion Won by 2030
"LG Transforms into a Solutions-Oriented Company"
Jo Joowan, CEO of LG Electronics, stated, "We will drive growth by expanding industrial and commercial B2B (business-to-business) revenue sources, including advanced cooling systems for AI (artificial intelligence) data centers, while also providing heating and cooling solutions tailored to regional demand."
On July 9, CEO Jo posted on his social media, "Yesterday, we set an important milestone by holding our first-ever press conference since the establishment of LG's Eco Solution (ES) Business Division," adding, "This moment is more than just an announcement; it signifies bold progress in LG's transformation into a future-ready, solutions-oriented company."
The previous day, the LG Electronics ES Business Division introduced its HVAC (heating, ventilation, and air conditioning) business strategy and AI data center-targeted HVAC solutions at LG Science Park in Gangseo-gu, Seoul. LG Electronics declared that it aims to: ▲ establish a locally integrated value chain covering research and development (R&D), production, sales, and maintenance; ▲ increase the share of non-hardware revenue to 20%; and ▲ strengthen business capabilities and portfolio through sequential acquisitions, with the goal of expanding current sales from 10 trillion won to 20 trillion won by 2030.
Jo Joowan, CEO of LG Electronics, gave a special lecture to students of the Department of Electrical and Information Engineering on April 24 at the First Engineering Building of Seoul National University in Gwanak-gu, Seoul. LG Electronics. Photo by Yonhap News
CEO Jo explained, "As global demand for intelligent heating and cooling solutions accelerates in the era of AI-based data centers, LG is focusing on delivering efficient and regionally appropriate innovation. Following the 3B (Build, Borrow, Buy) strategy, we are strengthening internal capabilities, pursuing strategic R&D collaborations, and accelerating mergers and acquisitions (M&A) activities," adding, "Most recently, we acquired OSO."
OSO, a Norwegian company, specializes in hot water solutions such as stainless water storage tanks and electric water heaters that store water heated by heat pumps or boilers. It is expected to create synergies with LG Electronics' European heat pump business.
He added, "This journey is about more than just hardware. We are expanding our AI-based platforms and developing digital twin technology to optimize HVAC performance in real time. Through deep localization across R&D, production, sales, and service, we are strengthening our presence in high-growth regions such as the Global South."
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