In the past, most corporations in Korea moved on the strong leadership and decisiveness of their founders. Samsung led by Lee Byung-chul and Hyundai led by Chung Ju-yung are prime examples. But now, as they compete for the top spot in the global market, these corporations have grown so large that it is difficult for the owner alone to be responsible for management. The role of the so-called "keyman," who sits closest to the owner, manages each field, and plays a pivotal role in final decision-making for the future, has grown in importance. We introduce the keymen of the major corporations leading Korea's economy and examine the roles and tasks assigned to them. [Editor's note]
Applause broke out for the first time in a while on the 15th at LG Twin Towers in Yeouido, Seoul. LG AI Research's generative artificial intelligence (AI) model "K-Exaone" passed the first evaluation of the government-led "indigenous AI foundation model" project with top scores in both benchmarks and expert reviews. LG's AI model, which has drawn interest from domestic and overseas institutions and corporations including the London Stock Exchange, once again proved its performance in an official assessment.
In the ninth year of his tenure this year, LG Group Chair Koo Kwang-mo, 48, has in recent years marked AI as a core pillar of future growth and emphasized "selection and concentration." He has repeatedly sent messages that "as the rules and paradigm of competition are changing, we must achieve innovation that goes beyond the methods that have led to success so far, based on selection and relentless focus," resetting investment priorities and accelerating the nurturing of new growth engines centered on ABC (artificial intelligence, bio, cleantech).
Inside and outside LG, Vice Chair Kwon Bong-seok, 63, chief operating officer (COO) of LG Corp., is cited as the key link that connects Chair Koo Kwang-mo's "selection and concentration" policy to decision-making at affiliates. Since 2022, Kwon has served as COO of LG Corp., often called the group's "No. 2," and has overseen, with Koo, the discovery of future growth engines and investment tasks across the group.
The vice chair corps, which numbered six when Koo took office, was streamlined into a structure with one vice chair—Kwon Bong-seok—assisting him, simplifying the core decision-making line. A business community source said, "Vice Chair Kwon serves as a compass, communicating frequently with top executives at affiliates to align the group's direction and investment priorities," adding, "He quietly minds the household, setting the standards for decisions on operational efficiency and future tasks without drawing attention."
This role can also be read in his connection with Koo. In 2014, when Kwon was head of the synergy team (executive director) at LG Corp., Koo, after receiving on-site management training at LG Electronics' business sites in Changwon, South Gyeongsang, joined the team led by Kwon as Director General.
The synergy team, now dissolved, was a core organization dedicated to collaboration projects among affiliates such as LG Electronics, LG Display, and LG Chem. It was regarded as a department like a "blueprint of the group" that could look into the inner workings across the organization. As Koo's direct supervisor, Kwon was said to have spared no advice on the interests among affiliates and business flows.
◇ A 39-year LG man who reshaped business fundamentals with "selection and concentration"
Kwon joined GoldStar (now LG Electronics) in 1987 and is a "true LG man" who has gone through key businesses including TVs, monitors, and mobile. He graduated from Seoul National University with a degree in industrial engineering and pursued an MBA at Aalto University in Finland. In 2007, in an unusual move for someone at the Director General level, he became head of the newly created monitor division. He launched innovative products such as industry-leading thin LCD monitors at the time, achieving the No. 1 global market share.
Employees who worked with Kwon at LG Electronics said he put the principle of "selection and concentration" at the forefront at every critical decision point. He boldly trimmed money-losing businesses and quickly increased investments in future growth engines. A prime example was his decision in 2017, when he oversaw the TV business, to scrap the "curved TV" business, which had been drawing attention as a next-generation product.
At the time, Samsung Electronics and LG Electronics were ramping up investments in curved TVs in competition, but TVs were still home appliances that families watched together in the living room, and there was feedback that curved screens were inconvenient. Based on this, Kwon excluded curved TVs from the new product lineup, effectively halting development.
As the TV product lines were streamlined in succession, fixed costs fell and profitability improved, observers said. In fact, the TV division's operating margin topped 8%, setting a record high around this time.
Believing that hardware competition alone could not protect profitability, Kwon introduced the smart TV platform "webOS" and grew the software business. He layered service models such as targeted ads on top, broadening the sources of revenue coming from TVs. As TV demand has continued to shrink, the webOS platform business has established itself as a cash-cow business for LG Electronics. Sales surpassed 1 trillion won two years ago, and the operating margin has remained in double digits. The webOS business is now being expanded beyond TVs to monitors and mobility.
After becoming CEO of LG Electronics 32 years after joining, he focused on automotive electronics as the next growth engine. In 2021, he established the electric vehicle powertrain joint venture "LG Magna e-Powertrain" with Magna International, the world's No. 3 auto parts company, accelerating the portfolio transition. With continued structural reform, LG Electronics posted its best results since its founding in 2021.
That same year, he closed the long-unprofitable smartphone business. There was regret internally because it was a business nurtured over a long period. But the prevailing view now is that had the exit been delayed, the entire company could have been shaken when demand plunged after the COVID-19 crisis.
Above all, the lack of after-the-fact controversy over the exit is seen as one of Kwon's strengths. A business community source said, "He reassigned the more than 3,400 people who had been in charge of the mobile business and wrapped up operations smoothly with corporations in the LG smartphone ecosystem, including partners," adding, "Given the scale, it was remarkably orderly, and Kwon deserves much of the credit."
◇ "Direct communication" leadership recalled in every business crisis
During the smartphone withdrawal phase, Kwon's "direct communication" was widely discussed in the industry. When rumors swirled about the sale of the MC (mobile) division, he sent an email calming employees, saying, "Regardless of how the direction of business operations is decided, employment will be maintained in principle, so there is no need to feel anxious."
When the shutdown was finalized, he sent another long email. "After long deliberation, we have made a very difficult decision. As CEO, my heart is heavy and I deeply regret what this decision will mean to the members of the MC division, but I would appreciate your understanding that it was a decision to prepare for a new leap forward with all of you."
When in-person contact became difficult due to COVID-19, he sent an email to employees titled "New Year's message delivered as a CEO diary." Many members reportedly still remember the diary-style note that candidly expressed his reflection and resolve as a leader.
An employee who once worked under Kwon said, "He always planned and delivered messages himself, and he organized presentation materials on his own, getting to the point without a separate script," adding, "He is a thoroughly pragmatic leader who values working-level opinions when receiving reports and avoids ceremony."
Another employee said, "Vice Chair Kwon often sets up time to communicate directly with employees, and each time he candidly and humorously shares his thoughts, keeping people engaged," adding, "He stacks books in his office and reads them, and when communicating with employees, he draws on memorable content from books, films, and music to share insights."
◇ LG's core businesses are wavering; a speed race to shift to future businesses
In his fifth year as COO, Kwon is focused on turning the blueprint drawn by Chair Koo into executable tasks by affiliate. He sets priorities for how to layer the AI research institute's technology onto electronics, batteries, telecommunications, and services, aligns the interests of affiliates, and keeps the "selection and concentration" policy from fraying on the ground.
He also sits on the boards of key affiliates such as LG Electronics, LG Chem, LG Energy Solution, and LG Uplus to discuss major business directions together. He is said to be meeting with global automaker executives to continue discussions on collaboration in automotive electronics, while also quietly exploring SoC design partnerships for video-based systems with big tech, including Meta.
Still, Kwon faces no small number of tasks. As core businesses that once supported LG's results wobble simultaneously due to intensifying competition and weakening demand, there is growing concern that if future growth pillars are not cultivated in time, the golden window for transition could be missed. LG Electronics fell into the red on a consolidation basis in the fourth quarter last year for the first time in nine years, as profitability in TVs and appliances worsened amid pressure from Chinese companies.
LG Energy Solution is also seeing a continued slowdown in the business climate due to stagnant EV demand. LG Chem faces mounting pressure for restructuring and portfolio shifts amid weakness in its petrochemicals institutional sector, and LG Display and LG H&H are also in urgent need of breakthroughs as competition with Chinese companies intensifies.
A business community source said, "LG's task now is beyond merely finding new growth engines; it is to bundle the scattered investments by affiliate into a larger group direction and ramp them up with speed," adding, "The speed at which it turns the synergy of new business transitions, including AI, into results will determine the outcome."