Brian Kwon, head of LG mobile and TV units, is all set to take charge of the entire company. Effective from 1st Dec, Kwon will be the new CEO of LG Electronics. The company has made these changes as a part of its usual year-end reshuffling operations so as to improve its business collaborations with its fellow companies further.
Kwon would be taking over the CEO’s position from Jo Seong-jin, who is also the vice-chairman of the firm, apart from being the CEO. He has played a major role in boosting the company’s business in the areas of home appliances. He had stepped into the CEO’s shoes during the time when Koo Bon-moo was the chairman of LG. Unfortunately, Koo Bon-moo passed away last year in May.
The appointment of Kwon as the CEO is being considered as a generation-shift for LG Electronics. Kwon is known to share good relations with LG Group chairman Koo Kwang-mo and vice chairman Kwon Young-soo.
LG Electronics has also created a new position of chief strategy officer, which would be headed by William Cho. This has been initiated by the company in a bid to improve communications between various business units and also other LG units.
According to LG Electronics, the newly formed top management team would be mainly focussing on increasing LG’s digital footprint across all units, wanting to make it more data-centric.
How would the new generation CEO handle businesses?
The process of electing new leaders on a regular basis is a part of a cultural shift that was initiated by the chairman of LG Koo Kwang-mo and his entire management team from the time he took up the position of CEO of LG corp last year.
The new leadership team will have their own methods to handle businesses. The previous generation of leaders was more keen on technology and craftsmanship. However, this new generation of leaders has adapted to doing an American-style of business. They are faster in making important decisions. Also, they are focussed on the complete reworking of those units wherein profits are pretty low or nil. Lastly, they adopt aggressive marketing strategies and file lawsuits against rival groups.
Koo is also keen towards the digitalization of almost all LG units. He is keen on developing something related to AI and software, which is the latest technology trend as of today.
LG Display had a new CEO in September owing to the poor performance of its OLED business. It also incurred heavy losses from its LCD unit. Due to these reasons, many people have been fired. The company is thinking of cutting down its LCD unit manufacturing by almost 50% next year.
LG Chem, the company’s battery manufacturing unit, has pointed its fingers at SK Innovation, accusing the company of stealing technology ideas. A patent lawsuit has been filed against the Chinese rivals of LG electronics. There has been a patent-related issue in its handsets and TVs.
Kwon is very well-known for conducting his business in an aggressive style. Thus, the decision-makers have taken an apt decision to appoint him as the CEO.
However, the main challenging part here is, finding growth in the areas of AI and software as LG is mainly affiliated towards hardware. One has to see how Kwon overcomes these challenges.
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