LG Electronics CEO Cho Joo-wan emphasized the urgency of responding to Chinese competition during a press briefing at CES 2025, the world’s largest consumer electronics and IT trade show.
“We’ve reached a stage where recognizing the threat posed by Chinese companies is no longer enough. It’s time to take action,” Cho said on Jan. 8. “We will develop strategies across multiple areas, including technology, product innovation, and cost optimization.”
Chinese competitors Hisense and TCL made their presence felt at the event with the launch of new TV models and AI-powered appliances, intensifying the rivalry with South Korean firms. Park Hyoung-sei, head of LG’s Media Entertainment Solution (MS) Company, noted that Chinese brands showcased ultra-large TVs exceeding 100 inches. “We are conducting extensive research to identify what types of TVs resonate most with customers,” Park said. “Beyond televisions, we’re strengthening our competitive edge in areas like system-on-chip (SoC) technology and our webOS platform.”
Despite the challenges, Cho struck an optimistic tone. “Amid these difficulties, there are still diverse opportunities within markets and among customers,” he said. “By focusing on differentiated customer value, we aim to create sustained growth opportunities across all business areas.”
LG Electronics plans to increase the share of its business-to-business (B2B) segment to 45% of total revenue by 2030, up from 35% at the end of 2024 and 27% in 2021. Cho highlighted the company’s expansive portfolio, which includes residential air conditioners, heating solutions that replace fossil fuel boilers, and AI-powered data center cooling systems, the latter recognized as a next-generation export item by the South Korean government.
“To support regionalized solutions, we are accelerating efforts to establish locally integrated business structures that cover R&D, production, sales, and maintenance,” Cho said.
LG also outlined plans to triple its subscription-based services by 2030. The company reported 2 trillion won ($1.5 billion) in subscription revenue last year, a 75% increase from the previous year. “The subscription market is continually expanding,” Cho said. “We will strengthen our competitive advantage by enhancing our industry-leading in-home care services and diversifying sales channels.”
Cho expressed confidence in LG’s performance in India, where the company leads in home appliance markets such as refrigerators and washing machines, as well as televisions. “We are committed to growing as a company even more beloved in India,” he said.
Last month, LG Electronics submitted a draft red herring prospectus (DRHP) to India’s Securities and Exchange Board (SEBI) for an initial public offering of its Indian subsidiary, underscoring its long-term commitment to the region.
