The time has come to move beyond simply recognizing the threats posed by Chinese corporations and to implement countermeasures. We are formulating strategies to respond to Chinese competition in terms of technological capability, cost reduction, and business operations.
Jo Joo-wan, Chief Executive Officer of LG Electronics, said this during a press briefing at the world's largest consumer electronics and IT exhibition held in Las Vegas on the 8th (local time). Attending the press briefing were Jo, Ryu Jae-cheol, Head of HS Business Division (President), Park Hyung-se, Head of MS Business Division (President), and Eun Seok-hyun, Head of VS Business Division, who explained LG Electronics' business strategies.
Amid growing global uncertainty, Jo noted that competition is intensifying due to the rise of Chinese corporations, and he stated that LG Electronics will seek breakthroughs through maximizing business potential, expanding platform-based services, and accelerating B2B business efforts. Jo remarked, "Although the situation is difficult, there are still various opportunities in the market and for customers," adding, "Even amidst change, we will maintain a focus on delivering distinctive customer value and continue to create opportunities for sustained growth across our business."
LG Electronics plans to increase the share of B2B in its total revenue to 45% by 2030. The share of B2B revenue rose to 35% by the end of last year, up from 27% in 2021. Jo stated, "We have a broad portfolio ranging from residential air conditioners to heating solutions that replace fossil fuel boilers, AI data center thermal management solutions, and chillers that are designated as national next-generation export items and are gaining attention," and added, "We will also accelerate the establishment of a localized, integrated business structure that encompasses R&D, production, sales, and maintenance to discover region-specific solutions."
During the same period, LG Electronics also set a goal to triple its subscription business. The company reported revenue of 2 trillion won from its subscription business last year, a growth of over 75% compared to the previous year. Jo remarked, "The subscription business market is continuously expanding," and stated, "We will enhance our expertise in superior customer service visits compared to competitors and diversify our sales channels to solidify our competitive advantage."
Jo explained that he will not lower his guard against the rapidly growing Chinese corporations. At CES 2025, Hisense and TCL unveiled new TV products consciously competing with domestic companies, as well as AI appliances. He noted, "If we were in the stage of recognizing the threat from China until now, we have now reached the stage where we must take action to respond," adding, "We will prepare strategies to respond from multiple angles, including technology and products, as well as cost reduction measures."
Park said, "Chinese corporations unveiled ultra-large TVs over 100 inches, and LG Electronics is internally researching what TVs are necessary from the customer's perspective," and added, "We will enhance our competitiveness in various areas compared to China, including system-on-chip (SoC) technology and the webOS platform that are integrated into TVs."
While doing so, Jo expressed confidence regarding the Indian market. He stated, "In India, LG Electronics is leading the market in home appliances such as refrigerators and washing machines, as well as in TVs," and added, "We will grow into a corporation that can receive even more love in India." LG Electronics previously announced that it submitted the preliminary listing documents for its Indian subsidiary's initial public offering (IPO) to the Securities and Exchange Board of India (SEBI) last month.