LG Group, the nation's fourth-largest conglomerate, is accelerating generational shift in its ongoing regular executive reshuffle.
LG Group is expected to hold board meetings for each of its subsidiaries between Nov. 22 and 24. Nov. 2023, to finalize executive appointments for 2024.
The decision of LG Energy Solutions Vice Chairman Kwon Young-soo, one of the three LG vice chairmen," to step down is raising the possibility of generational change at other major subsidiaries.
A report on Wednesday suggests that Korean display company LG Display and Korean electronics company LG Electronics, which are scheduled to make appointments on the 23rd and 24th, respectively, are expected to focus on generational changes to expand future businesses and reorganize.
With Kwon's departure, it is expected that the "Kwon Young-soo line," which is spread across affiliated companies, will step down and new faces will likely emerge.
Kwon, who was born in 1957, joined LG Electronics in 1979 and has held various positions. After LG Group Chairman Koo Kwang-mo took over in 2018, Kwon served as the company's Chief Operating Officer (COO), helping to stabilize the group before moving to LG Energy Solutions in 2021, where he led the company's battery orders and initial public offering (IPO).
With Kwon's departure, attention will be focused on the other two vice chairmen in LG. Speculations are rife that LG Vice Chairman Kwon Bong-seok and LG Chem Vice Chairman Shin Hak-cheol will retain their current positions, while LG Electronics President Cho Joo-wan will be promoted to vice chairman. There are also rumors that Korean electronic component manufacturer LG Innotek President Chung Cheol-dong will be promoted to vice chairman, which could signal a change in LG Innotek's position within LG Group.
Han Sang-beom, who previously headed LG Display, has been promoted to vice chairman among LG Group's electronics affiliates.
LG Electronics is expected to remain under the leadership of CEO Cho Joo-wan, which could hasten the process of generational change.
There is a possibility that younger executives will be promoted to the top of LG's business units, which have posted strong earnings despite the global demand slump.
LG Display President Chung Ho-young is expected to continue leading the company for another year to steer it towards a "turnaround".
In particular, LG Display is likely to appoint a new head of its small- and medium-sized OLED business to strengthen its organic light-emitting diode (OLED) business for IT, a key focus for the coming year.
While Chung Cheol-dong's promotion to vice chairman is likely, the heads of key business units are expected to be replaced.
A financial insider commented "The departure of Vice Chairman Kwon Young-soo is significant as it signals a shift in direction to a younger generation centered on Chairman Koo Kwang-mo."
This insider said "It won't be a one-time management change, but a generation change centered on younger managers and executives who can keep pace with Koo in the mid-to long-term."
This article was originally published on Nov. 22, 2023.