LG Group's Eight-Year Reset: Koo Kwang-mo Steers KRW 100 Trillion AI-Bio-Clean Bet Through 2028
Eight years after inheriting one of South Korea's largest conglomerates at age 40, LG Group Chairman Koo Kwang-mo has quietly engineered a financial turnaround that few analysts predicted in 2018. The group's three listed manufacturing arms — LG Electronics (066570.KS), LG Display (034220.KS), and LG Innotek (011070.KS) — are on track to post combined revenue of KRW 119.08 trillion (USD 77.5 billion) in 2026, with operating profit projected to top KRW 5 trillion for the first time, according to Korea Herald reporting published Sunday.
Record Q1 Sets the Tone
First-quarter 2026 results already signal the trend is holding. The three affiliates combined for KRW 29.26 trillion in revenue during the January-March period — the highest ever recorded for a single quarter — and KRW 1.82 trillion in operating profit, roughly four times the level posted in the same period of 2023.
The rebound marks a decisive break from the mid-cycle slump that plagued LG Display and the broader panel industry through 2022-23, when write-downs on LCD capacity and a global demand drought dragged group-level margins to multi-year lows.
A Portfolio Rebuilt Through Exits
Koo's playbook has been unusually decisive by chaebol standards: identify underperforming units, exit them, and redeploy capital toward structural-growth themes.
Key divestitures under his watch:
| Year | Exit |
|---|---|
| 2019 | Fuel cells, water treatment, electronic payments |
| 2021 | Smartphone business (LG Mobile — closed after sustained operating losses) |
| 2022 | Solar panel manufacturing |
| Ongoing | Reduced exposure to commodity LCD panels |
The freed-up resources have been redirected toward batteries for electric vehicles, automotive electronics, OLED displays, and semiconductor components — segments where LG commands premium margins and long-term supply agreements.
ABC: The KRW 100 Trillion Bet
Looking ahead, Koo has framed the group's next chapter around what LG calls the ABC strategy — Artificial Intelligence, Biotechnology, and Clean Technology — backed by a pledge to invest KRW 100 trillion in South Korea through 2028.
On the AI front, LG established its dedicated LG AI Research unit in 2020 and released the Exaone large-language model in 2021. The model is now embedded across affiliates ranging from LG Electronics' smart appliances to LG CNS's enterprise IT services (064400.KS).
The biotechnology pillar targets pharmaceuticals and biomaterials, sectors where LG Chem (051910.KS) has already built a meaningful presence through its life sciences subsidiary. Clean technology covers battery recycling and renewable-energy infrastructure, areas gaining policy tailwinds as South Korea accelerates its carbon-neutrality roadmap.
Low-Profile, High-Tempo
Unlike some of his chaebol peers, Koo rarely makes public speeches or court media attention. Aides describe his management style as hands-on but understated: unannounced factory visits, rapid operational decisions, and a preference for letting results speak over press releases. He holds a computer science degree from Rochester Institute of Technology and an MBA from Stanford, with early career experience at Silicon Valley startups — an atypical résumé for a Korean conglomerate heir that appears to inform his comfort with technology bets and portfolio pruning.
The contrast with LG's pre-Koo era — when the group maintained a broader, more diversified footprint even as margins eroded — suggests the current trajectory reflects deliberate strategic conviction rather than circumstance.
What Investors Are Watching
The KRW 100 trillion investment commitment, spread across AI infrastructure, biotech capacity, and clean-energy supply chains, will be funded partly through internally generated cash flows and partly through debt and equity instruments at the affiliate level. Analysts will be closely monitoring whether LG Display's OLED ramp sustains its recovery into the second half of 2026, and whether LG Innotek can maintain growth momentum in its camera module and substrate businesses as iPhone 17 production enters full swing.
For LG Corp (003550.KS), the listed holding company, the performance of its unlisted subsidiaries — including LG Energy Solution (373220.KS) — adds another layer of complexity to valuation models, particularly as the battery sector navigates EV demand volatility.
Sources: Korea Herald
