LG’s Legacy: Reinventing Itself for Every Generation
In the bustling streets of post-war Seoul, 1947, a determined entrepreneur named Koo In-hwoi set out to change his family's fortunes. He founded a small cosmetics company called Lak Hui Chemical Industrial Corp. (pronounced “Lucky”), with a single product: “Lucky Cream,” Korea’s first locally made face cream. The cream was a hit, and soon, Lucky expanded into soaps, toothpaste, and other household essentials, becoming a household name across Korea.
But Koo In-hwoi was not content to rest on his laurels. As plastics became the material of the future, he led Lucky into this new industry in 1952, making it the first Korean company to enter plastics manufacturing. Driven by a vision that extended beyond cosmetics and chemicals, he saw a new horizon—electronics.
In 1958, Koo founded GoldStar Co., Ltd., a company dedicated to producing Korea’s first radios and, soon after, televisions and home appliances.GoldStar’s early products brought music and information into Korean homes, helping to rebuild the nation’s spirit after the war. By the late 1960s, Lucky and GoldStar were both thriving, each pioneering in their respective fields of chemicals and electronics.
Recognizing the power of unity, the two companies merged in 1983, forming Lucky-Goldstar, or LG for short. This merger marked a turning point: LG now had the resources and expertise to innovate at a global scale. The company launched Korea’s first TVs, refrigerators, and air conditioners, and began exporting worldwide.
As the decades rolled on, LG never stopped evolving. In 1995, aiming for a modern, international image, the company officially adopted the name LG and embraced the slogan “Life’s Good”. LG expanded into mobile phones, computers, and cutting-edge display technologies, becoming a global leader in electronics and home appliances.
From a humble face cream to world-leading OLED TVs, LG’s story is one of bold pivots, relentless innovation, and a belief that a small company from Seoul could bring joy—and technology—to the world.Insights from LG’s Journey
Relentless Innovation: LG’s transformation from a local manufacturer to a global leader was driven by continuous investment in R&D and a willingness to embrace new technologies, such as OLED TVs and AI-powered appliances.
Brand Reinvention: The shift from the low-cost, low-quality “Lucky Goldstar” image to the upscale, reliable LG brand required not just marketing, but substantial improvements in product design and manufacturing quality.
Global Expansion: LG strategically targeted international markets, acquiring companies like Zenith in the US and building overseas factories to establish a global footprint.
Customer-Centric Approach: Focusing on consumer needs, especially with energy-efficient and smart solutions, helped LG build trust and loyalty worldwide.
Major Challenges Faced
Low Brand Perception: Early on, LG struggled with a reputation for poor quality, making it difficult to enter premium retail channels and compete with established global brands.
Fierce Competition: LG faced intense rivalry from giants like Samsung, Sony, and Panasonic in electronics, and Whirlpool and Bosch in home appliances.
Smartphone Market Failure: Despite innovation, LG’s smartphone division couldn’t keep up with Apple and Samsung, leading to its eventual exit from the market in 2021.
Economic and Supply Chain Shocks: Global downturns and supply chain disruptions impacted production and sales, testing LG’s resilience.
Balancing Product Range: LG had to cater to both premium and budget markets, requiring careful management of brand positioning and product quality.
Key Lessons Learned
Know When to Pivot: LG’s decision to exit the smartphone business and refocus resources on AI, smart homes, and EV components illustrates the importance of strategic pivots when a segment underperforms.
Continuous Improvement: Upgrading product quality and investing in innovation were essential to overcoming negative brand perceptions and moving upmarket.
Empower the Channel: Training and incentivizing retail sales staff helped LG overcome initial distrust and boost recommendations at the point of sale.
Strategic Partnerships: Collaborations in automotive and smart home sectors accelerated LG’s growth and diversified its revenue streams.
Customer Focus: Prioritizing sustainable, energy-efficient, and smart solutions ensured relevance in a rapidly evolving market.
Entrepreneurial Takeaways
Embrace change and innovation—never stop evolving your product or business model.
Brand reputation is built over time through consistent quality and customer experience.
Be willing to make tough decisions—such as exiting unprofitable markets—to focus on core strengths.
Invest in people—both internally (R&D) and externally (retail partnerships)—to drive long-term growth.
LG’s journey demonstrates that resilience, adaptability, and a relentless focus on innovation and customer needs are the cornerstones of enduring business success.
LG’s Progress Till 2025
LG has achieved record-breaking financial and strategic milestones up to 2025:
Record Revenue and Profit: In Q1 2025, LG posted its highest-ever first-quarter revenue of KRW 22.74 trillion and operating profit of KRW 1.26 trillion, marking the sixth consecutive year with over KRW 1 trillion in first-quarter operating profit. This growth was driven by expansion in B2B, subscription services, and the webOS platform, along with strong direct-to-consumer sales.
Business Transformation: LG’s core businesses now span home appliances, media and entertainment (including the webOS platform), vehicle solutions, eco solutions (HVAC), and advanced components via LG Innotek. The company’s flagship home appliance segment continues to lead global markets, while vehicle and eco solutions are rapidly growing, especially in B2B.
Subscription and Platform Growth: Subscription services revenue surged over 75% in 2024, nearing KRW 2 trillion, and LG aims to triple this by 2030. The webOS-based advertising and content business also exceeded KRW 1 trillion in revenue, with ambitions to expand platform-based services to account for 20% of total operating profit by 2030.
Global Expansion: LG has expanded its on-site care and subscription services across Asia, and its online brand shop sales grew over 80% YoY during Black Friday 2024.
Challenges Encountered
Market Uncertainties: Prolonged global market recovery and growing geopolitical risks, including shifting trade policies and intensified competition from Chinese tech firms, have created a volatile environment.
Profit Margin Pressure: Despite strong revenue, LG faces ongoing challenges to maintain profit margins due to global economic headwinds and supply chain disruptions. Q2 2025 guidance suggests a notable decline in operating profit compared to Q1.
Brand and Technology Competition: The competitive landscape is shifting from price-based to technology-based, requiring LG to continually invest in R&D and platform innovation to stay ahead.
Future Plans and Strategic Vision
Smart Life Solutions: LG is accelerating its transformation from a device-centric company to a “smart life solutions” provider, leveraging its expertise across devices, platforms, and services to enhance customer experiences in mobility, commercial, and residential spaces.
Platform and Subscription Focus: The company plans to:
Triple subscription service revenue by 2030.
Expand webOS as a comprehensive content and advertising platform for TVs, IT products, and vehicle infotainment, targeting a fivefold increase in platform-based service revenue by 2030.
R&D and Technology Leadership: Over 75% of advanced R&D will target key strategic areas, including AI, robotics, next-generation computing, quantum computing, and space technology. LG is employing a “Build, Borrow, Buy” strategy to secure capabilities through internal development, partnerships, and acquisitions.
B2B and Eco Solutions: LG aims to double the speed of market growth in eco solutions, expand its global presence in HVAC and data center cooling, and strengthen its service and maintenance business with AI and clean tech innovations.
Structural Competitiveness: The company is focused on enhancing quality, cost, and delivery across all business units to address intensifying global competition.
LG’s roadmap to 2030 is anchored in platform expansion, smart solutions, and technological leadership, positioning the company to capture new growth opportunities despite ongoing global challenges.
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Reference:-
https://www.lg.com/uk/lg-experience/our-stories/lg-over-the-years/
https://www.business-standard.com/about/what-is-lg-electronics
https://www.slideshare.net/KHUSJI/case-study-on-lg-life-good
https://thecconnects.com/lg-electronics-company-success-story/
https://www.ukessays.com/essays/marketing/the-history-of-lg-electronics-marketing-essay.php
https://www.forbes.com/sites/larrylight/2019/10/17/lg-from-low-class-to-high-class/
https://www.scribd.com/document/177721634/LG-COMPANY-PROJECT
https://www.lgnewsroom.com/2025/07/lg-releases-preliminary-earnings-for-second-quarter-2025/
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