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Seoul, July 12 (Reuters) – LG Electronics (066570. KS) unveiled its ambitious plans on Wednesday, aiming to achieve sales of 100 trillion won ($77 billion) by 2030. The South Korean company also announced its strategy for the future, including a substantial investment of around 50 trillion won. CEO William Cho outlined their vision of becoming a global top 10 company in vehicle components, with a target of doubling revenue to 20 trillion won by 2030. In addition, LG Electronics intends to strengthen its service platforms in the home appliance and TV businesses, focusing on generating recurring profits through media subscriptions and rentals.
Cho emphasized that LG Electronics would transform its business portfolio and drive profits by expanding into the business-to-business sector while transitioning to a service-oriented business model. The company aims to build on its past success in home appliances and venture into new markets, such as electric vehicle charging and digital healthcare.
To achieve these ambitious goals, LG Electronics expressed its willingness to consider various options for growth, including joint ventures, mergers, and acquisitions. They believe that strategic partnerships and inorganic expansion will play a vital role in their journey toward becoming a global leader.
In 2022, LG reported consolidated sales of approximately 65 trillion won, excluding its affiliate LG Innotek (011070.KS), which specializes in manufacturing device components like camera modules for smartphones.
LG expects its fast-growing Vehicle Component Solutions division, the newest addition to its business, to achieve a significant order backlog of approximately 100 trillion won by the end of the year. This backlog is projected to generate revenue spread over multiple years. The division, which produces vehicle components such as infotainment systems and lamps, turned profitable last year and reported sales of 2.4 trillion won in the January-March quarter.
Furthermore, LG Electronics recently estimated that its second-quarter operating profit rose 12.7% compared to the previous year, reaching 892.7 billion won. This marks the second-highest April-June quarter profit in the company’s history, with the highest being achieved in 2021.
LG’s future plans reflect its commitment to innovation, growth, and adaptation to changing market demands. By expanding into new sectors and focusing on services and recurring revenue streams, LG Electronics aims to establish itself as a dominant force in the global market, both in terms of vehicle components and its core businesses in home appliances and TV. With a strong emphasis on inorganic growth opportunities, the company is ready to seize new opportunities and propel itself toward its ambitious targets.
