LG Electronics revamps company structure

LG Electronics yesterday said it will restructure the company to focus on business solutions next year.

The restructuring will include developing new businesses, the consumer electronics manufacturer said in a statement.

"Our business will be perfectly positioned to address tomorrow's challenges as a result of these changes," said Yong Nam, Vice-Chairman and CEO of LG Electronics. "This strategy will enable us to capture even more of the ever-expanding commercial market.

"It will also help LG expand the value chain from device [hardware] to solutions and allow us to better address the lifestyle needs of our current and future customers."

In addition to the changes to the company's business units, the firm also appointed or promoted 48 new executives as part of the plan.

The realignment will spin off four business units – Digital Appliance, Digital Display, Digital Media, and Mobile Communications – into a new structure that includes Mobile Communications and four completely new units – Home Entertainment, Home Appliance, Air-Conditioning and Business Solutions.

The new business solutions unit will provide customers with integrated solutions that take advantage of LG's expertise in hardware, software, content and systems, the statement said.

The business will focus on commercial monitors, hotel TVs, digital signage, security and telematics.

BB Hwang, Executive Vice-President and CEO of the Digital Media unit, will take over in the same capacity at LG Business Solutions. The mobile communications unit will continue in its present form.

Dr Skott Ahn, formerly executive vice-president and CEO, will lead the business unit in his new role as its President and Chief Executive, LG said.