The Foreigners at the Top of LG

The once-stodgy Korean company has hired a team of Western managers to boost its imageand its profits

"It's usually through debate that great ideas arise," says CEO Nam Jae-Hyun Kim

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By Moon Ihlwan

December 11, 2008 at 5:00 AM UTC

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LG Electronics Chief Executive Nam Yong and his chief marketing officer, Dermot Boden, had just wrapped up a stormy strategy meeting. Tempers had flared—a rarity in a Korean company, where consensus and "face" are paramount. After the meeting this autumn, Nam said: "You know, we argue a lot." Boden was worried that he might have crossed a line that, as an Irishman working in Seoul, he hadn't recognized. Nam then took a few steps, turned back toward Boden, and added: "Why don't we argue more often?"

The contretemps illustrates the cultural shift under way at LG. The company, once among the most Korean of Korea's chaebol, or conglomerates, is pushing to diversify its management and become truly global. Boden is one of five Western veterans of IBM (IBM), Hewlett-Packard (HPQ), Procter & Gamble (PG), Unilever (UL), and elsewhere that Nam has lured into the executive suite. The foreigners now represent a quarter of LG's leadership and have taken over key positions including purchasing, supply-chain management, and human resources.