November 29, 2024

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LG Electronics CEO Cho Joo-wan speaks with a group of Korean reporters at a meeting held on the sidelines of the IFA trade show in Berlin on Friday. (LG Electronics)

BERLIN -- LG Electronics CEO Cho Joo-wan promised to actively engage with global investors as part of the company’s value-up drive.

“LG Electronics is committed to enhancing its corporate value these days,” Cho said during a meeting with a group of Korean reporters held on the sidelines of the IFA trade show in Berlin on Friday.

His comments came ahead of his visit to London to meet with institutional investors for a non-deal roadshow on Saturday.

This marks the first time the LG chief is hosting a European investor meeting, reflecting his strong determination as the company’s top decision-maker to enhance communication by creating more opportunities to engage with the market.

“The stock price is not rising easily, and I think we could have engaged more actively with shareholders and investors,” the CEO said.

After the tech giant announced last month that it would participate in the government's value-up program, expectations for shareholder returns are believed to have driven the stock price recovery. LG plans to announce the details in the fourth quarter.

Starting with the general shareholders' meeting held in March, Cho informed investors about the company's progress by holding investor relations sessions in San Francisco in May and Seoul in August.

“LG Electronics has achieved over 10 percent growth in recent years in its home appliance business, which is considered a mature market, and has recorded an operating profit margin close to 10 percent. The business structure is well balanced, with business-to-business accounting for 35 percent of total sales, but I would like to share a story that has not been widely publicized,” he added.

Regarding LG’s partnership with global Big Tech firms, he said that they are partners with “huge potentials” and the company is seeking ways to collaborate using its devices and customer usage data at users’ houses.

The LG chief attended the Microsoft CEO Summit upon the US IT giant’s invitation in May and met with Qualcomm CEO Cristiano Amon when he visited Seoul in July.

“After attending the Microsoft CEO Summit, I had a one-on-one meeting with MS CEO Satya Nadella. We discussed the wider adoption of AI and its potential. We will continue these discussions in the future,” Cho said.

“The market may not be aware, but we are Qualcomm's largest customer in the automotive industry. … We’re the world's No. 1 telematics company and the largest auto parts company using Qualcomm chips. We plan to discuss with Qualcomm how to implement evolving AI in vehicles in the future."

Regarding the possible listing of the company's Indian unit, he said: "India is a market where we have topped all home appliance sales except TVs. Our vision is not just about selling more products but also becoming a beloved brand there."

By Jie Ye-eun (yeeun@heraldcorp.com)