"Not Business Trips but Video Conferences, Executives Also Fly Economy"... LG Energy Solution Enters Crisis Management Mode

by Choi Yuri

Published 21 Dec.2024 14:47(KST)

Updated 21 Dec.2024 15:56(KST)

LG Energy Solution has entered a company-wide crisis management system.

LG Energy Solution Headquarters, Yeoui-daero, Yeongdeungpo-gu, Seoul. Photo by Jinhyung Kang aymsdream@

According to industry sources on the 21st, LG Energy Solution sent a message to its members the previous day under the names of Lee Chang-sil, Chief Financial Officer (CFO), and Kim Ki-su, Chief Human Resources Officer (CHO), stating, "We intend to introduce company-wide crisis management for proactive response."

In the message, LG Energy Solution said, "This year, for the first time in the past decade, a decline in sales is expected, and next year, the improvement in sales and operating rates is also projected to be limited. The burden from increased investment costs is also high, so significant profit generation is expected to be very challenging for the time being."

LG Energy Solution is undertaking various activities to overcome the crisis.

These include a fundamental review of investment and cost structures, expanding sales through additional orders in each business sector such as electric vehicles and energy storage systems (ESS), strengthening business competitiveness by adopting new form factors such as the 46 series, lithium iron phosphate (LFP), and prismatic cells, enhancing compatibility of global production plants, and asset efficiency through sales.

LG Energy Solution Power Grid ESS Battery Container Product

Following the launch of the crisis management system, it has been reported that internally, executives are required to fly economy class for overseas business trips lasting less than 8 hours.

Along with this, video conferencing will be promoted to reduce travel expenses, and the scale of business trips will be minimized.

Also, except for some new business and new technology areas, the plan is to maximize organizational efficiency through internal personnel reallocation rather than new hires for the time being.