New ventures drive growth for LG Energy Solution

LG Energy Solution is pushing ahead with its new businesses and focusing on future growth with in-house ventures KooRoo and AVEL, the battery manufacturing unit of LG Group said.

KooRoo’s battery swapping station [LG ENERGY SOLUTION]

LG Energy Solution is pushing ahead with its new businesses and focusing on future growth with in-house ventures KooRoo and AVEL, the battery manufacturing unit of LG Group said.

KooRoo, established last year, is seeking to commercialize its battery swapping stations (BSS), which increase the convenience for users of electric motorbikes by allowing them to swap out a used battery for a fully-charged one rather than having to spend time charging the original battery.

The service addresses a lot of the issues raised by electric vehicle users, including the long charge time, relatively short distance that can be traveled and high maintenance costs.

“If the electric motorbike battery ecosystem grows, it will help delivery services, be eco-friendly, quiet and safe," said Ahn Hong-duk, head of KooRoo. “We are set to initiate developing exclusive BSS battery packs and stations and plan to build up the electric motorcycle ecosystem with the collected data.”

AVEL, established last October, is seeking to run virtual power plants using energy storage devices (ESS) on Jeju Island.

As the use of renewable energy can impact the stable operation of power grids during bad weather, AVEL’s ESS solution allows for energy to be stored safely and drawn upon when conditions interrupt power sources.

“We will develop a system that can accurately predict the amount of renewable energy generation in the future and efficiently utilize and manage energy stored in ESS,” said Kim Hun-tae, head of AVEL.

Both KooRoo and AVEL highlight the opportunities for LG Energy Solution employees to explore new business ideas, and the company intends to continue to develop both its corporate culture and increase customer value through similar in-house ventures.

In the early days, the in-house ventures have been operated under the supervision of the company’s chief strategy officer while receiving all-round support to help quickly establish the business infrastructure.

As the companies grow, their own management is able to manage overall operations, including employee selection, working hours and workspace.

“We hope that the newly launched in-house ventures will be able to overcome their fear of failure and increase future customer value through innovative thinking and challenges,” said Kwon Young-soo, vice chairman of LG Energy Solution. “We will strive to make LG Energy Solution a company that seeks mutual growth, both with other companies and employees.”

LG Energy Solution is also seeking to shift its working culture to better suit younger employees as about 80 percent of its workforce are either Millennials or Gen Z. As such, the company has adopted a horizontal hierarchy and free working environment faster than other companies.

“In-house changes are being implemented to improve the work culture for executives and employees,” said a 28-year-old employee surnamed Kim. “These efforts are of great interest in the job market.”

The company has also underscored six major tasks to undertake in order to build a happing organizational culture, including meetings focusing on core tasks, an autonomous work culture focusing only on performance, a positive culture full of gratitude and praise and a happy workplace that cares about employees’ physical and mental health.

BY PARK YE-EUN [park.yeeun@joongang.co.kr]