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LG vice chairman fears protectionism in U.S.

Mar 07,2018
LG Group Vice Chairman Koo Bon-joon told top LG executives to review their long-term business plans to see how they may be affected by protectionist policies of the United States.

“The business environment at home and abroad has been deteriorating, affected by the protectionist trade policies introduced from the beginning of this year,” Koo said at an internal corporate seminar with 400 CEOs and executives of LG affiliates held at LG headquarters in Yeouido, western Seoul, Tuesday. “Such uncertainty in the global economy is expected to influence the first-quarter performances of LG affiliates.”

Koo pushed executives to review existing business strategies by analyzing opportunities and threats linked to the rapidly changing business environment.

As for LG’s cash cow businesses like home appliances and cosmetics, Koo told executives to focus on developing the next hot home appliance or the next cosmetics brand that would be as popular as Whoo, a cosmetics brand by LG Household & Health Care.

LG is already one of the major victims of the Donald Trump administration’s hard line protectionist trade policies. Trump decided to impose safeguard penalties on imported washers, one of LG Electronics’ major exports to the United States.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]