LG chief vows to make batteries core growth engine

LG Group Chairman Koo Kwang-mo (LG Group)

LG Group Chairman Koo Kwang-mo vowed to foster the battery business as a core pillar of the conglomerate alongside its key future growth areas — artificial intelligence, biopharmaceuticals and clean tech — during the group’s regular shareholders’ meeting on Wednesday.

“Industries like batteries are national industries of the future and must become key growth engines for LG Group,” Koo said in a written address delivered at LG Corp.’s 63rd general shareholders’ meeting, held at LG Twin Tower, the group’s headquarters in Yeouido, Seoul.

“To that end, we will continue to develop innovative solutions in next-generation battery and manufacturing technologies to overcome market and technical challenges.”

Koo’s remarks come amid mounting pressure on the battery industry from Chinese competitors and slowing demand in the electric vehicle market.

Following the announcement, shares of LG Energy Solution, the group’s battery arm, rose 7.3 percent to close at 360,000 won ($245) Wednesday.

During the annual meeting, Koo also emphasized the importance of compliance-based management.

“Compliance should be viewed as core infrastructure for corporate growth and development. All LG employees should embrace this mindset,” he said.

Koo further described 2024 as a “major turning point” for the company and the broader global economy.

“The global order is shifting rapidly due to changes in international relations, economic conditions, and accelerating technological innovation. … Now is a golden window for change and innovation for a sustainable future,” he noted.

In terms of leadership, LG Vice Chairman Kwon Bong-seok and President and CFO Ha Beom-jong were reappointed as internal directors of the board. Jung Do-jin, a business professor at Chung-Ang University, was newly appointed as an outside director and audit committee member.