LG makes big B2B push to regain momentum, boost profits: CEO

South Korea’s home appliance giant LG Electronics Inc. is stepping up efforts to enhance its presence in the global business-to-business market as the company faces growing headwinds from economic uncertainties.

Since the start of February, Chief Executive Cho Joo-wan has been visiting the US and Europe where the Korean company is participating in trade exhibitions to showcase its state-of-the-art electronics products.

While attending ISE 2023, Europe’s largest display expo, Feb. 1-3, Cho stressed the need for LG to further grow its information display business, which sells commercial screens used in hotels, restaurants, offices and schools.

In Barcelona, he also met with Mark Jonathan Way, the chief executive of Odeon Group, Europe’s largest cinema operator, to discuss business cooperation and toured local Odeon theaters equipped with LC Cinema LED screens.

CEO Cho, who also goes by his English name William Cho, then flew to Atlanta, Georgia where the company took part in AHR Expo 2023, one of the world’s largest heating, ventilation and air conditioning (HVAC) industry events.

Meeting with LG's clients, he said LG will continue to bolster its cutting-edge HVAC technologies, including one for AI-powered, smart home platforms.

EYES TOP SPOT IN GLOBAL SYSTEM AIR CONDITIONER MARKET

“We will expand our No. 1 position in the system air conditioner sector to new and growing markets as well as in advanced countries,” he said.

In particular, he said LG aims to strengthen its position in Latin America and Central Asia, where the system air conditioner market is growing at a faster pace than in other regions.

In January, he attended CES 2023 where he discussed ways to improve business tie-ups with its US partners, including General Motors Co. and Magna International Inc., LG said.

LG’s move to strengthen its B2B segment comes after its fourth-quarter profit plunged on weakening consumer demand amid concerns about a global economic slowdown.

In late January, the company said its October-December operating profit tumbled 91% year-on-year to 69.3 billion won ($55 million). It swung to a quarterly net loss of 212.4 billion won from a profit of 21.3 billion won in the year-earlier period.

“We will diversify our profit structure by expanding our B2B business through continuous investments, mergers and acquisitions and strategic partnerships,” LG said.

Write to Ji-Eun Jeong at jeong@hankyung.com

In-Soo Nam edited this article.