LG Group Chair Koo Kwang-mo told roughly 40 senior executives Wednesday that artificial intelligence is now a central pillar of future competitiveness, demanding faster investment execution and greater persistence across the conglomerate's key affiliates. The eight-hour strategy meeting at the LG Academy in Icheon, Gyeonggi Province, marks Koo's third gathering with affiliate chiefs this year as the group races to reposition its portfolio around AI-driven industrial change.
"AI is no longer an area we can approach selectively. It is a central pillar that will determine our future competitiveness," Koo said, according to LG on Thursday. "Our CEOs must act with speed and relentless execution so that we can win in the key AI markets of the future."
The meeting drew leaders from major units including LG Electronics, LG Display, LG Innotek, LG Chem, LG Energy Solution and LG Uplus. Executives reviewed investment performance and plans across strategic areas: AI factories, physical AI, semiconductor materials and substrates, and companywide AI transformation. They agreed that investment decisions should be guided by clearly defined objectives and portfolio strategies, not opportunistic bets.
Scenario planning and early opportunity identification
With uncertainty rising across industries, LG said it would strengthen scenario planning and verification processes to respond faster to shifts in markets, competition and technology. The group's top executives emphasized the need to identify investment opportunities early and concentrate resources in areas with the greatest strategic weight.
The group also reaffirmed its human-centered approach to AI. While industry debate intensifies over the risks of rapid AI development, LG's leaders agreed the strategy should focus on producing tangible improvements in people's lives rather than on the technology itself.
A year of escalating urgency
Koo has been chairing quarterly meetings with affiliate CEOs as part of a broader push to upgrade LG's business portfolio. At the March session, he told leaders that AI transformation should be led directly by CEOs and business heads, not delegated to designated technology teams. "The most important thing is speed," he said at the time. "Rapid execution matters more than a perfect plan. We need to start small but move quickly in areas with meaningful business impact, accumulate results and expand them."
In April, Koo visited Silicon Valley and met executives from data analytics company Palantir Technologies and physical AI startup Skild AI to discuss accelerating LG's AI shift. LG Technology Ventures, the group's corporate venture capital arm, has invested in Skild AI. During the trip, Koo called on the venture unit to serve as an advance base for building LG's future portfolio through early investments aligned with the AI transition.
At the June meeting, Koo emphasized "winning research and development," urging affiliates to create technological advantages that competitors would struggle to replicate.
Why this matters for executives and strategy leaders
Koo's directive reflects a structural shift in how large industrial conglomerates are treating AI investment: not as a technology initiative but as a CEO-level portfolio decision. The emphasis on speed over perfect planning, early opportunity identification, and scenario-based investment frameworks mirrors what AI strategy for executives increasingly demands - moving capital and talent before market positions harden. For strategy leaders outside LG, the takeaway is clear. If AI investment governance still sits with technology teams rather than the C-suite, the organization is already behind.
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