LG's 2026 Strategy Overhaul: New CEO and B2B/AI/webOS Acceleration
LG Electronics is instituting significant structural and leadership changes for 2026, pivoting to become an agile, Smart Life Solution Company. Effective December 1, Lyu Jae-cheol, the successful head of the Home Appliance Solution (HS) Company, assumes the role of Chief Executive Officer.
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| LG 2026 Structural Overhaul; New CEO and B2B/AI Hyper-Focusn |
1. Leadership Transition: Spreading the HS DNA
The appointment of Mr. Lyu emphasizes LG’s core strategy: extending the proven DNA of the HS Company—built on consistent B2B expansion, D2C models, and unique customer value—across the entire corporation.
- New CEO's Mandate (Lyu Jae-cheol): Focus on boosting fundamental competitiveness and growth potential by disseminating the home appliance division's market-leading execution and customer-centricity. Mr. Lyu, a researcher since 1989, brings deep R&D and technical expertise to the top role.
- Executive Promotions: LG is directly strengthening its two primary B2B growth engines by promoting the heads of both companies to President:
- Eun Seok-hyun (Vehicle Solution Company - VS)
- James Lee (Eco Solution Company - ES, focused on HVAC)
- HS Company Leadership: Executive VP Baek Seung-tae takes over the HS Company, ensuring continuity in global production strategy.
- Transition: Former CEO William Cho steps down after successfully establishing the "Smart Life Solution Company" vision, focusing on B2B, non-hardware, and D2C foundations.
2. Organizational Restructure: The B2B/AI/webOS Accelerator
The four-company structure (HS, MS, VS, ES) is retained for accountability and speed, but new divisions are being created to aggressively accelerate mid-to-long-term, high-potential business areas.
See Also: LG Unveils LED All-in-One Displays to Enhance Meetings
A. Dedicated B2B & Robotics Engines
- Home Appliance Solution (HS) Company:
- Creates the HS B2B Overseas Sales Division to expand the global built-in and builder-focused business.
- Elevates the Built-in/Cooking Business Division to a full Business unit for increased focus.
- Forms the new HS Robotics Lab (led by Research Fellow Lee Jae-wook) by integrating key functions from the CTO’s Advanced Robotics Lab.
- Eco Solution (ES) Company (HVAC Focus):
- Establishes the Applied Business Division for industrial cooling, specifically targeting data center cooling, ventilation, refrigeration, and nuclear power HVAC solutions.
- Launches the ES M&A Division and ES Overseas Sales Division for localized global B2B operations and expansion opportunities.
B. webOS and Display Monetization
- Media Entertainment Solution (MS) Company:
- Merges TV and IT Businesses into a single Display Business, supported by a new Display Product Development Group.
- Promotes the webOS Advertisement Business Department to a full Business to strengthen the expansion and monetization of webOS-based services.
C. Companywide AI Transformation (AX)
- The AX Center: The existing DX Center and Business Process Innovation Division are integrated into the new, critical AX Center, led by senior VP Cho Jung-bum. This center will spearhead efforts across LG to accelerate AI adoption, enhance operational efficiency, advance R&D, and strengthen employee capabilities—driving the company's full AI Transformation.
- CTO Advanced R&D: A Next-Generation Computing Lab is established within the Chief Technology Office to focus on future technologies like quantum and distributed computing and security, complementing the new AX strategy.
These adjustments are a strategic maneuver to build a nimble, focused organizational structure, driving accelerated growth in high-value B2B sectors (Vehicle Solutions, specialized HVAC) and non-hardware platforms (webOS services, D2C, and AI).