Chief Executive Officer (CEO) and President Kim Dong-hoon of LG CHEM said in a New Year's address on the 5th, "If all executives and employees eliminate any path of retreat on their own and take up the resolve of 'pabuchimju (破釜沈舟),' meaning a do-or-die stand, we can overcome this major change with our way of innovation." Pabuchimju means "to break the cauldrons and sink the boats," expressing a determination to fight to the death.
Kim said, "The changes in the semiconductor, robotics, and Autonomous Driving markets brought by artificial intelligence (AI), the structural imbalance where supply overwhelms demand, and rising uncertainty due to geopolitical issues are creating a situation that is difficult to predict. To succeed amid change, the traditional level of response to change is not enough," emphasizing three tasks to break through the crisis.
The first task Kim emphasized is an innovative approach. He said, "We must drive changes in the business portfolio more innovatively," and added, "Even if market conditions improve somewhat for two to three years, we must judge from the perspective of whether we can maintain a competitive edge 10 or 20 years from now. We must not make the mistake of following market fads." He continued, "The businesses we should aim for are high-profit businesses with high technological barriers that are closely tied to customers," and said, "The success of innovative tasks is absolutely essential not for temporary success, but to continuously maintain a competitive edge."
Kim also emphasized selection and concentration. Kim said, "Selection and concentration are essential to increase the probability of innovation success," adding, "LG CHEM has devoted significant effort to pushing new businesses, but in terms of resources, there have been areas where capabilities were dispersed. Also, in a difficult business environment, there were cases where we could not invest in and nurture enough. Therefore, we will clarify strategic priorities."
Kim said, "We will continue early-stage investments (Seed) for the future, but will boldly adjust areas that do not align with strategy," adding, "We will achieve success by focusing our limited resources on core Winning Tech tasks and key new business areas."
Kim also focused on innovating how work is done. Kim said, "If selection and concentration are ways to increase the probability of innovation success, changing how we work is a practical way to speed up innovation," adding, "To that end, we will roll out AI transformation (AX) and OKR (Objectives & Key Results) companywide as tools for innovation."
Through AX, Kim said, "On the frontlines we will accelerate innovation by creating quick wins in a short period," adding, "Across sales, production, and development, we will swiftly introduce Agentic AI to increase the pace of enhancing customer value." He also said, "Through OKR, the entire organization will pursue ambitious goals," emphasizing, "Achieving tasks at the level others are doing will not bring differentiation. Let's set more innovative tasks, and everyone should become a Cross Functional Team across departments to raise the speed of innovation and produce results through intense discussion and focus."