LG Electronics replaced President Cho Joo-wan, who has led the company as chief executive officer (CEO) for the past four years, with Lyu Jae-cheol, head of the Home Appliance & Air Solution (HS) Company and regarded as an appliance "technology expert," installing him as the new commander. Observers say the move focuses on restoring fundamental technological strength amid a crisis in which profitability is deteriorating worldwide due to weak demand for TVs and appliances and intensifying price competition.
On the 27th, after board approval, LG Electronics finalized the "2026 executive appointments" and "organizational restructuring." Appointing Lyu Jae-cheol, who has successfully led the home appliance business, as the new CEO, LG Electronics said he is a "technology leader who joined the Goldstar Home Appliance Research Institute and rose to CEO," adding he is "the right person to strengthen the fundamental competitiveness of LG Electronics' businesses."
Talk of replacing President Cho Joo-wan has steadily circulated inside and outside LG throughout the second half of this year. Cho laid the groundwork to expand LG Electronics' business portfolio, which had been skewed toward TVs and appliances, into vehicle components and business-to-business (B2B) operations. However, some have argued that in terms of the pace of expansion and improving profitability, there has been a lack of fundamental technological competitiveness.
A senior LG official said, "The main background for the CEO change appears to be the strong view that a person was needed who could solidify the fundamental competitiveness of each LG Electronics business unit from a more microscopic perspective," adding, "Lyu Jae-cheol's greatest strength is his almost obsessive attention to technical detail and his extensive field experience."
In fact, LG Electronics highlighted Lyu's management philosophy as "surfacing problems" and "strong execution." Lyu is known for emphasizing relentless self-reflection and rigorous self-awareness to secure a business's intrinsic competitiveness. Following Lyu's appointment, LG Electronics is expected to launch an extensive review of the entire value chain of all businesses, including purchasing and manufacturing.
LG Electronics said, "This year, the HS Company held a 'surfacing problems contest' for all members at home and abroad. Rather than top-down, one-way instructions, the aim was to identify elements needing improvement from the practitioners' perspective and innovate," adding, "The thousands of problems and solutions derived from this contest are translating into stronger fundamental competitiveness for LG home appliances."
Lyu is also known for convening hundreds of leaders from the business unit at the end of each year to oversee the GIB event, calling for and personally encouraging strong organizational execution. GIB stands for "Go Into Battle," a leadership workshop that conveys the spirit of approaching business like a general entering the battlefield. Before starting next year's operations, all leaders in the business unit gather to surface the year's problems, conduct a rigorous self-critique, and firm up their resolve to achieve next year's targets.
Meanwhile, Lyu is known as an executive who actively uses artificial intelligence (AI) to strengthen quality, cost competitiveness, and development speed. In the home appliance research and development (R&D) track, he was the first inside the company to introduce a reasoning AI based on OpenAI's corporate "ChatGPT Enterprise." By inputting various variables, it can generate results without actual experiments, sharply reducing the R&D period and development expense.
An industry official said, "If former President Cho Joo-wan laid a mid- to long-term foundation by presenting the company's grand vision, Lyu Jae-cheol is an executive with the drive to execute it concretely," adding, "He has deep understanding from manufacturing to the overall supply chain and is expected to demonstrate a leadership style particularly strong on detail."