Seoul, Korea, December 19, 2008 – The Board of Directors at LG Electronics (LG), a global leader and technology innovator in consumer electronics, announced today strategic changes to the company’s structure, effective January 1, 2009.
At the core of LG’s reorganization is an increase in its focus on business solutions for tomorrow’s challenging environment. The company’s business portfolio has been restructured to maximize growth potential in existing businesses while at the same time fully developing new ones.
“Our business will be perfectly positioned to address tomorrow’s challenges as a result of these changes,” said Yong Nam, Vice Chairman and CEO of LG Electronics. “This strategy will enable us to capture even more of the ever-expanding commercial market. It will also help LG expand the value chain from device (hardware) to solutions and allow us to better address the lifestyle needs of our current and future customers.”
In addition to the changes to the company’s business units, Mr. Nam also appointed or promoted 48 new executives as part of his sweeping plan to position LG for long-term business success.
At the core of LG’s strategy is a re-alignment of the company’s four traditional business units – Digital Appliance (DA), Digital Display (DD), Digital Media (DM) and Mobile Communications (MC) – into a new structure that include Mobile Communications and four completely new units – Home Entertainment (HE), Home Appliance (HA), Air Conditioning (AC) and Business Solutions (BS):
Home Entertainment Company
HE will be the business unit focusing on technology related to televisions, PDP modules and audio-video products. The Company will be formed from units of both Digital Display and Digital Media. Simon Kang -- formerly Executive Vice President and CEO of LG Digital Display – was appointed President and CEO of the newly created Company.
Home Appliance Company
The HA unit will focus on refrigerators, washing machines, kitchenware and other domestic appliances. Young Ha Lee, formerly President of CEO of LG Digital Appliance, has been tapped to run LG Home Appliance.
Air Conditioning Company
LG’s successful air conditioning operation will be spun-off from the company’s DA business to focus exclusively on commercial and residential conditioning, home network (HomeNet) business and building management system (BMS). Executive Vice President Hwan Yong Nho, formerly head of the air conditioning division at DA, has been named CEO of the new Company.
Business Solutions Company
This new unit will provide customers with integrated solutions that take advantage of LG’s expertise in hardware, software, content and systems. LG’s Business Solutions will focus on commercial (B2B) monitors, hotel TVs, digital signage, security and telematics. B.B. Hwang, Executive Vice President and CEO of the Digital Media unit, will take over in the same capacity at LG Business Solutions.
Mobile Communications Company
LG’s well-regarded Mobile Communications unit, a critical part of the company’s future strategy, will continue in its present form. Dr. Skott Ahn, formerly Executive Vice President and CEO, will lead the business unit in his new role as its President and CEO.
