LG Electronics aims for new growth with three strategic areas

On the 21st, at the LG Electronics Investor Forum in Seoul, CEO Cho Joo-wan discussed business portfolio innovation. [Courtesy of LG Electronics Inc.]

LG Electronics Inc. has identified three key growth areas with which it aims to generate more than 1 trillion won ($750 million) in annual revenue: appliance subscription services, advertising, and content business on its web operating system (OS), and cooling system chillers.

Chief Executive Officer Cho Joo-wan outlined the company’s new growth strategies at an investor forum on Tuesday. “We are committed to expanding our business beyond home appliances into various fields such as home, commercial, mobility, and virtual spaces, and our efforts are yielding sustainable results,” he said.

LG expects its subscription model, which integrates after-sales services with home appliances, to generate 1.8 trillion won in sales in 2024, or a 60 percent increase from the previous year. The company anticipates 1 trillion won in revenue from advertising and content on its web OS, which is used in TVs and other appliances, and plans to broaden the use of Web OS to car entertainment systems and smart appliances. Meanwhile, as the demand for artificial intelligence data centers grows, LG’s cooling system chiller business is experiencing an average annual growth rate of 15 percent, with a sales target of 1 trillion won by 2027.

The company is also exploring growth opportunities in electric vehicle charging stations, smart factories, and robotics. The company unveiled its “2030 Future Vision,” where it stated its aim to evolve into a “smart life solutions company” that enhances and connects customer experiences across all areas, in July 2023.