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  • Updated
  • 02-12-2010

Company Expects Completely Integrated Organization Concept to Lead to Even Faster Decision-Making

Johannesburg, Dec 2, 2010 – LG Electronics (LG) announced a number of restructuring commitments as part of its ongoing transformation process to overcome the current challenges and to accelerate future growth.

The restructuring is aligned to three main priorities:

To establish business unit-centered complete operating system to ensure speed and accuracy in decision-making;

Enhance development of advanced technology and reinforce new business organisations with a clear eye to the future; and

Strengthen the company’s business fundamentals by accelerating innovation.

A Business Innovation Office will be established and overseen directly by Vice Chairman Bon-joon Koo. It will be responsible to elevate various company core competencies such as Six Sigma, Services and Procurement. The Chief Marketing Office (CMO) will be disbanded while the Global Marketing Division will be renamed as Global Marketing Office, to promote LG Brand and strengthen subsidiaries’ sales capability.

To give more emphasis to individual products, the Business Solutions (BS) Company will be dissolved, with the monitor and solution business units transferring to the Home Entertainment (HE) Company. In consideration of their business characteristics, The Home Entertainment Company’s Digital Storage (DS) business unit, the Mobile Communications (MC) Company’s PC business unit and Business Solution Company’s Car business unit will become independent units and report directly to the Vice Chairman.

To strengthen its existing business and develop new capabilities, the Home Appliance (HA) Company will elevate its component business with the establishment of a Compressor and Motor business unit. A separate healthcare business team will drive growth in this category and a separate commercial water business team will be created to drive the water business forward.

The Air Conditioning (AC) Company will take on the new name of Air Conditioning and Energy Solution (AE) Company, which will take on future growth opportunities in the environment space such as solar and LED lighting.