LG Electronics, which is currently undergoing a strategic transformation to become a “Smart Life Solution Company,” is focused on innovation and growth under its Future Vision 2030 strategy launched in 2023. The company has outlined plans to expand its business to achieve these goals.
At an investor forum on August 21 at LG Science Park in Seoul, CEO William Cho gave an overview of the company’s progress. Future Vision 2030 has set ambitious “Triple Seven” targets 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 businesses. One of these four activities may be quite unexpected.
Liquid immersion cooling
The company focuses primarily on its Heating, Ventilation, and Air Conditioning (HVAC) business, which has experienced annual growth of more than 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 highly efficient cooling technologies to target the AI-driven data center market, a key growth area. The company is also exploring new solutions such as liquid immersion cooling, which offers a more efficient way to manage the heat generated by computer systems.
Tom’s Hardware compares LG’s move to how Levi’s Jeans built its business during the Gold Rush. “Instead of looking for gold, it sold the tools and clothing the miners needed. So the company was still in a good position even after the Gold Rush (or AI Rush) was over.”
During the investor forum, LG also indicated that it plans to shift its focus from the consumer side to areas with potentially greater growth. The company stated: “By 2030, 50 percent of total revenue and 75 percent of operating profit will come from B2B, platform-based and new businesses.”
Cho added: “These goals are quickly becoming a reality. We will ensure that LG’s new value proposition is recognized by all stakeholders, securing sustainable growth and profitability in the long term.”