LG Advances "Smart Life Solution Company" Strategy, Targets Triple Seven Growth

Philip Lee -

SEOUL, South Korea- LG Electronics outlined progress on its "Future Vision 2030" strategy to transform into a "Smart Life Solution Company" at an investor forum in Seoul on Wednesday.

CEO William Cho detailed LG's approach to business portfolio innovation, focusing on four key directions: maximizing existing businesses, expanding platform-based services, accelerating B2B growth, and fostering new ventures.

LG aims to achieve "Triple Seven" targets by 2030: 7% average growth rate, 7% operating profit, and an enterprise multiple (EV/EBITDA) of 7. 

The company reported interim progress, with an 8% revenue increase and a 6% operating profit in the first half 2024.

Key initiatives include:

  • Integrating subscription services into home appliances and expanding direct-to-consumer sales channels
  • Leveraging LG's product ecosystem as a platform for content, advertising, and services revenue
  • Increasing B2B share of total revenue to over 45% by 2030, up from 35% in H1 2024
  • Investing in new areas such as commercial robotics and electric vehicle charging

LG highlighted emerging "unicorn" businesses generating over KRW 1 trillion ($740 million) in annual sales. 

The home appliance subscription service achieved this status in 2023, with revenue expected to exceed KRW 1.8 trillion in 2024.

The webOS-based advertising and content business is projected to surpass 1 trillion won in revenue this year, a fourfold increase from 2021. 

LG plans to invest over KRW 1 trillion in webOS capabilities by 2027.

LG's chiller business, targeting the growing AI data center cooling market, aims to become a unicorn within three years.

Cho stated that by 2030, LG targets 50% of total sales and 75% of operating profit from B2B, platform-based, and new businesses.

(US$1 = KRW 1,349.55)