Innovation Anchored Under Koo Kwang-mo... Kwon Bong-seok Appointed as LG Representative

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[Asia Economy Reporter Jeong Hyunjin] Koo Kwang-mo, Chairman of LG, who will enter his fifth year in office next year, has established a lineup to create innovation suitable for the 'post-COVID-19' era through the regular executive personnel reshuffle on the 25th. Kwon Bong-seok, the current CEO of LG Electronics, was promoted to vice chairman and moved to the position of LG Chief Operating Officer (COO), Koo's counterpart, and is expected to focus on expanding future businesses such as automotive components, artificial intelligence (AI), and robotics, which have seen increased investment since Koo's inauguration.

LG Corporation held a board meeting on the morning of the same day and appointed Kwon as the next CEO. Kwon was promoted to vice chairman in this personnel reshuffle. Vice Chairman Kwon will take on the role of LG COO, succeeding Vice Chairman Kwon Young-soo, who moved to CEO of LG Energy Solution. LG plans to hold an extraordinary general meeting of shareholders on January 7 next year to appoint Vice Chairman Kwon as an inside director, and once the appointment process is completed at that meeting, the board will proceed with discussing the agenda for appointing the CEO.

LG explained, "Vice Chairman Kwon, as CEO of LG Electronics, has driven record-high performance through selection and concentration and business restructuring, and will take on the role of strengthening preparations for the future for LG Group's sustainable growth as LG Corporation COO."

Vice Chairman Kwon has been a key figure leading structural improvements at LG Electronics, a core affiliate, since Chairman Koo's inauguration. Notably, he reorganized the mobile phone business (MC Business Division), which was considered LG Electronics' 'pain point' this year. At that time, Kwon sent an email to employees stating, "The core competencies accumulated in the MC Division will be focused on new future values for LG Electronics and the group." Additionally, in early July, he launched LG Magna e-Powertrain, an electric vehicle powertrain joint venture with Canadian auto parts company Magna International.

In the business community, it is expected that Vice Chairman Kwon, who has led these changes, will actively communicate with Chairman Koo and rapidly promote the expansion of LG Group's core future businesses such as AI, automotive components, robotics, and big data across affiliates. Vice Chairman Kwon has experience working with Chairman Koo in 2014 when Koo was head of the synergy team and Kwon was the synergy team leader at LG Corporation, responsible for creating convergence synergies among LG Group affiliates.

Regarded as a 'strategic planning expert,' Vice Chairman Kwon joined Geumseong (now LG Electronics) Business Planning Office in 1987 and has spent most of his career at LG Electronics. Based on the know-how accumulated there, he is expected to assist Chairman Koo in overseeing LG's overall management and drawing the big picture for future businesses.

Along with Vice Chairman Kwon's move, the new CEO of LG Electronics will be Chief Strategy Officer (CSO) Cho Joo-wan. Cho is an 'overseas expert' who served as head of LG Electronics' Canada and U.S. subsidiaries. Since his appointment as the newly established CSO in last year's organizational restructuring, he has managed key issues for the company's future, including strategic planning and new growth engines. LG Electronics views this as a critical time to proactively respond to the rapidly changing global market environment by prioritizing customer value management, accelerating digital transformation, and advancing the business portfolio, and has selected Cho as the right person for the role.

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