LG reorganizes its business structure with Lyu Jae-cheol as new CEO

From next 1 December, Lyu Jae-cheol takes over as CEO of LG Electronics, replacing William Cho in this responsibility. A change also marked by an ambitious restructuring of the Korean multinational's businesses and divisions..

To facilitate an orderly transition, William Cho will step down as CEO, after four years at the helm of LG Electronics y 37 years dedicated to the company, to give way to this responsibility Lyu Jae-cheol from next 1 December.

During this time, Cho has designed a medium and long-term vision to transform LG into a company focused on solutionsmart life, connecting and expanding customer experience in different spaces. Its strategic roadmap prioritized performance in key businesses; he growth in B2B areas, no hardware y D2C; the expansion in high potential markets in the global south, and the exploration of new businesses, that today are part of LG's future growth plan.

For your part, Lyu Jae-cheol joined the company in 1989 as a researcher at the Home Appliance Research Center. He has dedicated almost half of his career to R&D in this category, which has brought him the deep technical knowledge that has marked his management style. From 2021 He has led the H division&A (today HS), placing LG as the number brand 1 in household appliances worldwide.

As new CEO of LG Electronics, Cheol will base his experience in this sense to offer a differential value to the customer in all businesses with the aim of strengthening the competitiveness and growth potential of the Korean multinational.

Besides, LG has announced new changes in your organization to 2026, effective from 1 January, with those you seek gain efficiency and provide the company with a more agile decision structure and capable of responding quickly to changes in the environment, as well as to reinforce selective and focused operations in accelerating your portfolio strategy in the medium and long term.

As far as the organization is concerned, Eun Seok Hyun has been promoted to head of the Vehicle Solution division (VS), y James Lee to the Eco Solution division (ES). Besides, Kwack Do-yeongha been appointed regional representative of the company in North America and director of LG Electronics USA.

The multinational will maintain its current four-division structure, guaranteeing quick decisions and responsibility at a general level. Similar or adjacent functions across divisions will be integrated to simplify operations and improve execution.

With the appointment of Lyu as CEO, the executive vice president Baek Seung-tae, until now responsible for Kitchen Solutions, will take over the leadership of the division. Those responsible for Media Entertainment Solution (MS), VS and ES remain in their respective positions to ensure continuity and strategic momentum.

In parallel to the search for greater efficiency, LG is activating new actions to accelerate high potential businesses like HVAC, webOS and robotics. In this last, The company has launched the HS Robotics Lab, integrating functions of the CTO robotics laboratory, and has appointed the senior researcher Lee Jae-wook, who led the humanoid robot initiative, as its director.

Regarding the MS division, LG integrates TV and IT units into a single business with the creation of Display product development group to reinforce product competitiveness and convert the webOS advertising department into a division that encourages the expansion of these services.

Regarding the ES division, the company creates the Applied division, focused on HVAC solutions for data center cooling, ventilation and nuclear energy, and presents those of ES M&A and ES Overseas sales to support comprehensive and localized international operations.

The Office of the Chief Technology Officer (CTO) sets the HS Advanced Research Lab to strengthen fundamental technologies and create the Next-Generation Computing Lab to lead emerging areas such as quantum and distributed computing and security next generation.

Finally, to promote the transformation in AI, LG integrates the DX Center and the division Business process innovation in the new AX Center, that under the direction of the vp. senior Cho Jung-bum will accelerate the adoption of artificial intelligence, operational efficiency, the advancement of R&D and the development of employee capabilities.