LG Electronics pledges to rake in 10 trillion won in B2B sales by 2030

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LG Electronics pledges to rake in 10 trillion won in B2B sales by 2030

Published: 10 Oct. 2024, 19:11

JIN EUN-SOO
jin.eunsoo@joongang.co.kr

Audio report: written by reporters, read by AI

A Tesla vehicle is connected to LG Electronics' EV charger at a test lab in Pyeongtaek, Gyeonggi, on Thursday. [LG ELECTRONICS]

PYEONGTAEK, Gyeonggi — Inside a 330-square-meter (1,082-square-foot) test lab inside the LG Digital Park Complex, located on the outskirts of Seoul, on Thursday morning, stood Hyundai Motor's Ioniq 6, Tesla's Model X and BMW's iX1 models connected to LG Electronics' EV chargers.

The EV chargers were being tested for basic functionalities when connected to different models, clients' requests and safety related to voltage and frequency transitions as well as fire risks. They could be tested differently for the Korean, North American and European EV markets.

The test center was established in June testify to LG Electronics' ambitious goal of shifting its business model from the current business-to-consumer to business-to-business (B2B). And EV chargers stand in the center of the transition.

Jang Ik-hwan, head of LG Electronics' business solutions division, pledges to generate 10 trillion won of revenue by 2030 at a press conference on Thursday. [LG ELECTRONICS]

LG Electronics, on Thursday, pledged to generate 10 trillion won ($7.4 billion) in revenue by 2030 from its business solutions (BS) division, which is in charge of various B2B businesses and solutions such as commercial displays. That is a twofold figure from the current revenue.

“On the back of LG Electronics' understanding and know-how about our customers and various spaces they live in, which we accumulated through 66 years of experience in the home appliance business, we will become the best business partner that suggests customized services and solutions to our clients,” Jang Ik-hwan, head of the BS division, said to press on Thursday. “Although the EV charger market is kind of depressed due to the EV chasm, it is an opportunity for us to earn time to fortify our lineup.”

LG Electronics targets the North American and European EV charger market, considering the relatively slow deployment of chargers installed across the countries compared the number of EVs sold there.

“One charger should handle two to four vehicles, but, currently, it handles up to 16 vehicles in the United States, with things not so different in Europe. It means that the U.S. EV market still needs more EV charger infrastructure,” said Jang.

The initial distribution of EVs has now hit its limit, and it's time for us to show more credibility. Our main target is North America and Europe, and maybe the Middle East for the next target.”

Medical monitors are on display at the LG Digital Park Complex in Pyeongtaek, Gyeonggi, on Thursday. [LG ELECTRONICS]

The medical monitor market is another segment LG Electronics is going after, leveraging its unrivaled technology in display.

LG Electronics pledged to become one of the top global three players in the medical display market within the next five years.

“The medical display market has high entry barrier because it requires top-notch resolutions and credibility by having to fulfill various display standards such as the DICOM Part 14,” LG Electronics explained.

“LG Electronics will offer 'turnkey' service where we supply all of the displays needed in medical organizations.”

LG Electronics is already doing medical display business in 50 countries with its portfolio spanning from medical monitors to digital X-ray detectors.

“The medical display market has strong players like Siemens and Phillips. So, we are going to start from what we can do well, such as the monitor. We are not going to start making MRI [magnetic resonance imaging] equipment from the beginning,” Jang said.

Commercial displays that utilize premium MicroLED technology, branded as LG Magnit, as well as transparent organic light-emitting diode displays that can put a tech-savvy spin to cafes and even hotel rooms, are some of the other segments that LG Electronics plans to focus on.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]