LG Electronics, which is currently undergoing a strategic transformation to become a “Smart Living Solutions Company” focused on innovation and growth under its Future Vision 2030 strategy launched in 2023, has outlined plans to expand its business to meet these goals.
During an investor forum held on August 21 at LG Sciencepark in Seoul, CEO William Cho reviewed the company's progress as Future Vision 2030 has set ambitious “Triple Seven” goals for the company: an average growth rate of 7%, an operating profit of 7%, and an enterprise multiple (EV/EBITDA) of 7.
To achieve these goals, LG is focusing on four key areas: maximizing the potential of existing businesses, expanding platform-based service models, accelerating growth in the B2B sector, and developing new ventures – one of which could be quite unexpected.
Liquid immersion cooling
The company places particular focus on its heating, ventilation and air conditioning (HVAC) business, which has seen annual growth of over 15% over the past three years, with overseas sales more than doubling. The HVAC business offers a broad portfolio, from residential air conditioners to commercial systems for large buildings, schools, public institutions and industrial facilities.
LG plans to leverage its expertise in high-efficiency cooling technologies to target the AI-driven data center market, a crucial growth area. Additionally, the company is exploring new solutions such as liquid immersion cooling, which provides a more efficient way to manage heat generated by computing systems.
Tom's Hardware Store Compare this decision by LG to the way Levi's Jeans built its business during the gold rush. “Instead of panning for gold, it sold the tools and clothing that the miners needed. So the company was still in a good position even after the gold rush (or AI rush) was over.”
At the investor forum, LG also outlined its plans to shift focus from the consumer side to potentially larger growth areas, stating: “By 2030, 50 percent of total sales and 75 percent of operating profit will come from B2B, platform and new businesses.”
Cho added: “These goals are rapidly becoming a reality. We will ensure that LG’s new value proposition is recognized by all stakeholders, ensuring sustainable growth and long-term profitability.”
