Introduction to LG’s Strategic Shift
LG Electronics has announced a reorganization to strengthen its Business-to-Business (B2B) opportunities, focusing on subscription-based and direct-to-consumer business models. This strategic move aims to ensure sustainable growth for the company.
New Leadership Appointments
Lyu Jae-cheol has been appointed as the new CEO or managing director. Lyu Jae-cheol has extensive experience in the home appliance sector, having led LG Home Appliance Solution (HS) since 2021. He joined Goldstar, now LG Electronics, in 1989 as a researcher at the Home Appliance Research Center.
William Cho’s Transition
William Cho, who has served as CEO for four years, is stepping down to support a healthy leadership transition. Cho joined LG in 1987 and dedicated 37 years to the company, expanding its business beyond home appliances into sectors like mobility and commercial spaces. He established a mid- to long-term vision to transform LG into a life intelligence solutions provider, enhancing customer experiences across various spaces.
Key Business Focus Areas
Under Cho’s leadership, LG prioritized growth in B2B areas, subscription-based models, and direct-to-consumer (D2C) channels. The company expanded into high-potential markets in the South Global region and explored new business domains, all of which became crucial to LG’s future growth strategy.
To further accelerate the growth of LG’s key B2B pillars—vehicle solutions and HVAC (heating, ventilation, and air conditioning)—the company has promoted Eun Seok-hyun, director of Vehicle Solution (VS), and James Lee, director of Eco Solution (ES), to president positions.
New Regional and Country Leadership
Kwack Do-yeong, with expertise in sales, strategy, and global market knowledge, has been appointed as the Regional Representative of LG Electronics North America and director of LG Electronics USA.
Implementation Timeline
All appointments and structural changes will take effect on December 1, 2025, while promotions will commence on January 1, 2026.
Key Questions and Answers
- Who is Lyu Jae-cheol? Lyu Jae-cheol is the newly appointed CEO of LG Electronics, bringing extensive experience in home appliances and leadership skills honed during his time at LG Home Appliance Solution (HS).
- What is the significance of William Cho’s departure? William Cho’s departure supports a healthy leadership transition, allowing for new ideas and strategies to emerge while acknowledging his contributions during his four-year tenure as CEO.
- What are the key business focus areas under LG’s new strategy? The company prioritizes B2B opportunities, subscription-based models, and direct-to-consumer channels. LG also expanded into high-potential markets in the South Global region and explored new business domains.
- Who are Eun Seok-hyun and James Lee, and what are their new roles? Eun Seok-hyun and James Lee have been promoted to presidents of Vehicle Solution (VS) and Eco Solution (ES), respectively, to further accelerate growth in LG’s key B2B pillars—vehicle solutions and HVAC.
- Who is Kwack Do-yeong, and what is his new role? Kwack Do-yeong, with expertise in sales, strategy, and global market knowledge, has been appointed as the Regional Representative of LG Electronics North America and director of LG Electronics USA.
- When will these changes take effect? All appointments and structural changes will take effect on December 1, 2025, while promotions will commence on January 1, 2026.
