LG CEO Outlines Bold Strategy for AI and B2B Growth Amid Rapid Industry Shifting
LG Electronics Chief Executive Officer Lyu Jae-cheol has issued a sharp call to action for the global technology leader, declaring that the era of simply matching the competition is over.
Speaking at a press briefing, Lyu outlined a comprehensive management direction that places Winning Tech and artificial intelligence at the heart of LG’s future.
“The paradigms of industries and competition are shifting at unprecedented speed,” Lyu told reporters. “Simply keeping pace is no longer enough. To stay competitive, we must clearly understand the ecosystem, move faster than others and execute better.”
To ensure this strategy translates into results, Lyu has established an Innovation Drive Division that reports directly to him. This new organization acts as a central coordination hub, designed to accelerate transformation across product development, manufacturing, and sales. Lyu emphasized that he will “personally oversee progress and key performance milestones” to ensure the company achieves what he calls flawless execution.
In the realm of research and development, LG is narrowing its focus to Winning Tech. These are high-priority innovations selected specifically for their customer value and commercial potential. Lyu noted that the goal is to create gaps in competitiveness that rivals cannot easily bridge, particularly through faster commercialization of technologies built on key component competitiveness.
At the core of LG’s evolution is AI Transformation or AX. Unlike past digital shifts that focused on individual tasks, AX is designed to integrate the company’s entire value chain into a more autonomous, data-driven system.
“While digital transformation optimized individual tasks, AX is designed to integrate them end-to-end,” Lyu explained. The company has set an ambitious target to improve overall productivity by 30 percent within the next two to three years, allowing employees to shift their focus toward “higher-value innovation and expertise.”
The strategic pivot is already yielding significant financial results. LG’s non-hardware sectors, including vehicle solutions, HVAC, and product subscriptions, now account for nearly half of global revenue and a massive 90 percent of operating profit.
The vehicle solutions division is expected to post its strongest performance to date this year, fueled by the demand for software-defined and AI-defined vehicles. Simultaneously, LG is positioning its HVAC business as critical digital infrastructure, specifically targeting cooling solutions for AI-powered data centers.
Despite ongoing global economic uncertainty, LG is doubling down on its future. The company plans to increase its investment in growth areas by more than 40 percent year-on-year. This surge in capital will be supported in part by proceeds from the planned IPO of LG Electronics India.
Lyu concluded by reiterating that LG’s strength lies in its ability to adapt quickly. “In every decision, we must prioritize customers and move with the mindset that ‘execution is power’ and ‘action is the answer,'” he said.
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