LG Outlines 2025 Growth Plan, Targets KRW 50 Trillion Investment
Las Vegas, NV - LG Electronics CEO William Cho outlined the company's 2025 business strategy, emphasizing structural competitiveness enhancement and qualitative growth amid market uncertainties.
The South Korean electronics giant reported that its subscription services revenue increased by more than 75 percent year over year in 2024, reaching nearly KRW 2 trillion, surpassing its original target of KRW 1.8 trillion.
The company aims to triple this figure by 2030.
LG's online brand shop demonstrated strong performance, with sales increasing over 80 percent year-over-year during the November 2024 Black Friday period.
The company's webOS-based advertising and content business exceeded its revenue target of KRW 1 trillion in 2024.
LG plans to expand webOS beyond smart TVs to include IT products and vehicle infotainment systems while developing AI-powered Digital out-of-home solutions.
In the B2B sector, LG has established a new LG Eco Solution Company focused on HVAC operations.
The company's B2B revenue share increased from 27 percent in 2021 to 35 percent by the end of 2024, and it plans to reach approximately 45 percent by 2030.
The company announced that over 75 percent of its advanced R&D efforts will concentrate on technologies aligned with mid to long-term strategies.
The research will focus on eight core technologies: software, system on chip, AI, robotics, materials and parts, standards, next-generation computing, and cloud/data.
LG has committed to invest over KRW 50 trillion by 2030 to drive portfolio transformation and qualitative growth.
The investment will include facilities, R&D, equity, and potential mergers and acquisitions.
The company is expanding its subscription-based services to India, Singapore, and Hong Kong in 2025, following successful launches in Malaysia, Thailand, and Taiwan.
LG aims to establish its platform-based service business to account for 20 percent of total operating profit by 2030.
Cho cited ongoing challenges from delayed global market recovery and increasing geopolitical risks mainly changes in major nations' trade policies.
He noted a shift in competition with Chinese companies from price-based to technology-focused strategies.