Jo Juwan: "AI Should Focus on Experience Over Technology... Two-Track Strategy of Competing and Cooperating With China" [IFA 2025]

Jo Juwan Outlines Business Strategy at IFA
Differentiated Experiences Driven by Affectionate Intelligence
Focus on Qualitative Growth in B2B to Boost Revenue and Profit

Jo Joowan, CEO and President of LG Electronics, announced a strategy to strengthen competitiveness by providing differentiated customer experiences based on the company’s AI philosophy of Affectionate Intelligence. Regarding the pursuit of Chinese companies, he presented a "two-track" approach, aiming to compete through innovation while also expanding cooperation, such as joint development.

On September 5 (local time), at the LG Electronics exhibition hall at the IFA 2025 in Berlin, Germany, CEO Jo shared these plans with reporters. He said, "AI home is not only a battle of technology, but ultimately a battle of customer experience," adding, "To make AI more easily accepted by customers, we need to select specific areas among the countless aspects of convenience and provide deeply immersive experiences in those areas."

Jo Joowan, CEO of LG Electronics, is answering questions from reporters at the LG Electronics exhibition hall at IFA 2025 held in Berlin, Germany, on the 5th (local time). Photo by Jang Heejun

This means that rather than broadly expanding the application of AI technology, LG Electronics will focus on practical areas where it can be truly helpful, such as alleviating user inconvenience during laundry. This is the positioning of LG’s Affectionate Intelligence philosophy.

He also shared his perspective on relations with China, which is rapidly catching up with Korean companies. The strategy is to compete technologically while choosing cooperation where possible, believing this will bring wise results for LG Electronics.

Recently, LG Electronics has taken a bold step by partnering with cost-competitive Chinese companies through joint development and manufacturing (JDM). A prime example is the launch of ultra-low-priced refrigerators and washing machines in the 600,000 won range in the European market in collaboration with Chinese appliance companies. Once the business potential of JDM is verified, the company is considering expanding the product lineup to include air conditioners and dryers. CEO Jo also believes that this will create new opportunities not only for Chinese companies but also for domestic component suppliers.

CEO Jo stated, "For the time being, we need to view some areas from both a competitive and cooperative perspective with China," adding, "Every country is collaborating with Chinese companies, and insisting on overcoming everything on our own would be an arrogant approach." He further explained, "While using original equipment manufacturing (OEM) may not convey LG Electronics’ quality and DNA, JDM allows us to deliver the unique nuance and impression that is characteristic of LG Electronics."

LG Electronics showcased a large number of AI home solutions based on LG ThinQ On and 25 new products tailored for the European market under the theme "Orchestra of LG AI Appliances" at the IFA 2025 exhibition held in Berlin, Germany, from the 5th to the 9th (local time). LG Electronics

From a business standpoint, he emphasized "qualitative growth" centered on B2B sectors such as data center cooling solutions, components and equipment, and automotive electronics, explaining, "We are shifting to a structure that grows both sales and profit together." On September 2, CEO Jo signed a memorandum of understanding (MOU) with local companies in Saudi Arabia to supply cooling solutions for Neom City data centers. The plan is to further strengthen strategic partnerships in the future.

He also highlighted the automotive electronics business as a promising B2B area, stating, "In the in-vehicle infotainment (IVI) sector, which accounts for more than 70% of LG Electronics’ automotive electronics business, we are achieving a high operating margin of around 7 to 8%." He added, "Qualitative growth areas such as B2B, platform business, non-hardware (Non-HW), subscription, and direct-to-consumer (D2C) sales now account for nearly 50% of the company’s total sales and 80% of operating profit," signaling a strong push in these areas.

Meanwhile, regarding the launch of RGB TVs by companies such as Samsung Electronics and Hisense at IFA, he said, "LG Electronics will also introduce RGB TVs," adding, "We expect to launch them as early as the beginning of next year with even better specifications."

When asked about the aerospace business, he responded, "LG Electronics is number one in the world in the telematics sector, and our communication-related standard patents are also among the global leaders. Since this is an area where we can create synergy with LG Electronics’ technology portfolio, we are closely reviewing the possibility of commercialization in cooperation with group companies such as LG Innotek."