LG Electronics has revealed its growth strategy. It plans to invest over KRW 50 trillion by 2030 to support its portfolio transformation and long-term growth.
LG Electronics’ CEO William Cho has presented the company’s 2025 business strategy, emphasizing structural competitiveness and qualitative growth.
The approach involves refining execution strategies to adapt to shifting global market dynamics, leveraging innovative business models such as subscription services and webOS-based advertising. These initiatives showcase LG’s agility in responding to evolving demands. William Cho noted the prolonged global market recovery, geopolitical challenges, and a shift from price-based to technology-driven competition, underscoring the importance of new strategies.
Under its Future Vision 2030, LG is transitioning from a device-centric business model to smart life solutions that enhance customer experiences. The company aims to capitalize on opportunities by delivering differentiated customer value. Subscription-based services and online brand shops play a critical role in expanding market presence, combining devices and services for added convenience and flexibility. In 2024, subscription service revenues exceeded KRW 2 trillion, a 75% increase, with a goal to triple by 2030. Similarly, the online brand shop reported an 80% sales surge during Black Friday.
LG’s platform-based service business is set to increase revenue fivefold by 2030, contributing 20% to total operating profit. The webOS ecosystem, central to this strategy, exceeded KRW 1 trillion in revenue last year. It is evolving into a comprehensive content platform, expanding to IT products, vehicle infotainment systems, and AI-powered digital advertising. Organizational realignments and M&A opportunities further support this expansion.
The company is also accelerating growth in the B2B sector, focusing on HVAC solutions. The newly established LG Eco Solution Company drives innovations in high-efficiency technologies for residential and commercial applications, including AI-optimized systems for data centers. LG projects B2B revenue to account for 45% of total revenue by 2030, up from 35% in 2022.
LG is revamping its R&D portfolio, focusing on key technologies such as AI, robotics, and next-generation computing. The “3B” strategy — Build, Borrow, and Buy — guides efforts to foster internal capabilities, collaborate with external partners, and secure cutting-edge technologies. Investments in quantum computing and space technology exemplify LG’s commitment to future growth.
To enhance structural competitiveness, LG is implementing a CEO-led task force system targeting quality, cost, and delivery. Task forces will drive advancements in product innovation, manufacturing, and R&D. Additionally, LG is preparing for external uncertainties by crafting predictive scenarios and response playbooks.
William Cho said LG is committed to sustained investments, allocating resources strategically across facilities, R&D, equity investments, and M&A. The company plans to invest over KRW 50 trillion by 2030 to support its portfolio transformation and long-term growth.
Rajani Baburajan
