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LG chief pushes for AI transformation in face of Chinese competition

Published: 25 Sep. 2025, 17:55 Updated: 25 Sep. 2025, 19:26

LG Group Chairman Koo Kwang-mo, far right, visits LG Technology Ventures in Silicon Valley to review technologies from major startups backed by the venture capital arm, which serves as a global startup incubator, in this undated photo provided by LG. [LG]

LG Group Chairman Koo Kwang-mo urged executives to secure structural and differentiated competitiveness through “selection and concentration,” as Chinese competitors pour more than four times the capital into key industries.

Koo made the comments at the LG Academy in Icheon, Gyeonggi, during a quarterly gathering of the company’s top executives on Wednesday, according to LG.

“There is still much to be done,” Koo said. “We must push forward with three priorities: business selection and concentration, building differentiated competitiveness through research and development and strengthening structural profitability.”

CEOs from major affiliates including LG Electronics, LG Display, LG Chem, LG Energy Solution and LG U+ attended the meeting, along with around 40 chief digital officers. The group hosts quarterly management sessions to review mid- to long-term strategies.

The LG logo is seen at LG Electronics' headquarters in Yeouido, western Seoul, on April 7. [YONHAP]

Koo has increasingly stressed countering China’s rapid growth. In a meeting last September, he urged executives to set bold goals. This year, his message has sharpened into a direct call for strategies against Chinese rivals.

In June, during a visit to LG’s new industrial complex in Karawang, Indonesia, he asked executives to prepare survival strategies by “looking five years ahead and deciding where to focus.”

Earlier in February, while in India's Bengaluru and New Delhi, he called on business leaders to develop differentiation strategies against Chinese companies and secure sustainable leadership.

Many affiliates are already under pressure from Chinese competitors. LG Electronics has seen profitability plunge amid aggressive price competition and is carrying out voluntary retirement programs across all divisions. LG Chem faces restructuring pressures as it sells off profitable units in response to oversupply from China.

The picture shows the stand of Korean manufacturer LG at the IFA international trade show on Sept. 5 in Berlin. [AFP/YONHAP]

Koo pointed to the AI transformation, or "AX," as a way forward. Industry observers say the chairman sees productivity gains and cost reductions through AI as the only way to withstand China’s challenge across industries.

Within LG, AX adoption is accelerating. At an online seminar in August, LG Display highlighted how AI cut display design times from three to four weeks down to just eight hours. An LG representative said executives agreed that AX requires “clear goals and fast execution.”

Koo also emphasized workplace safety. “For many employees, the company is a place where they spend more time than at home, so I ask executives to pay close attention to their safety,” he said.

The remark referenced the recent incident where U.S. immigration authorities carried out a mass detention of Korean workers at the construction site of LG Energy Solution and Hyundai Motor's plant in Georgia, according to LG. After the incident, Koo directed executives in real time to “prioritize safety," the group added.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM SU-MIN [[email protected]]