LETTER TO THE STAKEHOLDERS
As global leader defining technological innovation in electronic products, mobile communication devices, and household appliances, LG Electronics (LGE) is continuing its growth and generating customer value in our worldwide production sites. I extend my sincere gratitude to our stakeholders for their unwavering support and encouragement for LGE. In the first half of 2020, uncertainties in the market due to global trade disputes and volatility in the foreign exchange market, as well as the global outbreak of COVID-19, resulted in economic stagnation of the global economy and industries. In these trying and difficult times, and determination are what we need perseverance to tackle today’s challenges. As a community member and a corporate citizen, LGE affirms our commitment to the following initiatives, with a goal to build a future of mutual growth with our stakeholders.
Until now, we achieved growth and development by refining our growth models around LGE’s flagship businesses. In today’s business environment, however, the complexities of the market and the competitive landscape significantly influence the company’s growth and development trajectory. In response, LGE is innovating our business model through “strategic positioning and focus” in areas of potential mid- to long-term growth. We seek to create a virtuous cycle of growth and development based on such business strategy.
In particular, digital transformation is one of the key areas for LGE to maintain a sustainable operation in today’s hyper-connected, Industry 4.0 era. By targeting business domains of high-growth potential such as artificial intelligence (AI) and big data, we are proactively responding to the changes that lie ahead of us. In this respect, LGE plans to incorporate contents and services to a wide range of products, while promoting connected devices to develop new markets and secure growth opportunities. Forging strategic collaborations with business partners in diverse sectors will strengthen our open innovation and contribute to realizing returns. Furthermore, LGE will build a fast and responsible decision-making system that can respond to the rapidly changing business environment and initiate innovation by mobilizing company-wide capacity
At LGE, understanding the changing needs of our customers and delivering value is the core of our competiveness as well as a longterm goal that must be maintained under any circumstance. We will keep in mind that creating customer value must be placed first as we maintain a product oriented business model. Everyone at LGE will pay close attention to the voice of our customers, recognizing it as a great resource for opportunities, With this, we will draw growth and changes in our endeavors in creating new customer value.
LGE will do our utmost not only to generate economic value but also to carry out our corporate responsibilities. Specifically, we have established mid- to long-term goals from a sustainability management perspective, in which we are undertaking a range of initiatives and managing our performances. In pursuit of the three main sustainability commitments – intelligent life, zero carbon and circular economy, and better society – we will devise measures to provide better value and prepare for a sustainable future for our stakeholders. Since its establishment, LGE has been committed to creating economic, social, and environmental value for over half a century. Going forward, we remain fully committed to providing better value to our stakeholders, including customers, the environment, business partners, local communities, and employees. I ask for your continued support and interest in our journey toward sustainable development founded on growth, change, and innovation.
CEO & President of