이 기사는 2021년 12월 24일 07:49 thebell 에 표출된 기사입니다.

LG Electronics’ new chief executive officer (CEO) Cho Joo-wan has picked Austria as its first overseas trip destination instead of the world's largest consumer electronics and IT expo, the Consumer Electronics Show (CES), which is a similar move made by former CEO Koo Bon-joon a decade ago.

Cho recently visited ZKW Group, LG Electronics’ automotive light maker subsidiary in Austria, along with Eun Seok-hyun, president of Vehicle component Solutions (VS) division and Kim Jin-young, former president of the division, industry sources said on Wednesday. Oliver Schubert and the management of ZKW reportedly met LG Electronics’ top management to discuss business growth strategies.

LG Electronics and its parent LG Corp acquired the Austrian automotive lighting and headlight systems provider in 2018 for more than 1.4 trillion won ($1.2 billion). After ZKW integrated the head lamp business of LG Electronics, it logged orders worth about 12 trillion won at the beginning of this year. ZWK recently completed its new logistics center and increased its investment in the future mobility business.

Former CEOs of LG Electronics mostly picked the CES as their first overseas trip destination. Former CEOs Cho Seong-jin and Kwon Bong-seok both attended the CES held in Las Vegas in January of the following year they were appointed as CEOs.

The only exception was former CEO Koo Bon-joon, who visited Tianjin and Shanghai, China, immediately after he was named as chief executive in the company’s year-end executive reshuffle in 2010. Back then, China was the strategic hub for the company’s overseas business, accounting for 25% of its overall sales. It operated 12 production units and six sales units there.

The fact that Cho chose to visit ZKW on his first foreign trip as CEO since taking office last month signifies the importance of the VS business. LG Group Chairman Koo Kwang-mo sees the VS business as key to the conglomerate's future growth, along with artificial intelligence and robots.

LG Electronics’ VS division recorded an operating loss of 879.3 billion won in the third quarter. Its revenue grew to the third largest, following Home Appliance and Air Solution division and home entertainment division, but failed to turn to a profit.

Performance of ZKW will be the key for Cho to achieve positive results in the VS division. LG Electronics’ VS business consists of three main pillars – infotainment, powertrains, and auto lighting systems. ZKW's orders account for 20% of the VS division’s total orders worth 60 billion won. ZKW has already received orders from global carmakers like BMW, VolksWagen, and Mercedes-Benz for the next three years and expects to set a new sales record next year. (Reporting by Hyun-ji Sohn)