LG Group Chairman Koo Kwang-mo has acknowledged mounting challenges for the South Korean conglomerate, who is facing serious problems in its troubled Australian operations, where allegations of harassment by senior management have emerged.

Speaking at a leadership meeting this week, Koo admitted that Chinese rivals that include the likes of Hisense and TCL Haier are now investing “three to four times more” in capital and manpower, leaving LG under pressure to accelerate change.

In a bid to sharpen competitiveness, LG is betting heavily on artificial intelligence while seeking new revenue streams in B2B markets. “We have focused on LG’s three strategic pillars—business selection and concentration, winning R&D, and structural profitability improvement—but much still remains to be done,” Koo said.

More than 40 CEOs and chief digital officers from LG Electronics, LG Display, LG Chem, LG Energy Solution and LG Uplus were summoned to the strategy session, where the chairman stressed urgency. “Chinese rivals are investing three to four times more… execution is critical,” he warned.

Analysts say LG’s challenges are visible across multiple divisions. LG Display has been forced to exit the large LCD panel business under pressure from low-cost Chinese makers and is now struggling to defend its position in the premium OLED TV market. LG Electronics faces shrinking margins in appliances as Chinese brands gain share in the mid- and low-end segments.

In Australia, LG is attempting to bypass traditional retail by ramping up its direct sales operations in search of higher profits. The company has also faced regulatory scrutiny from the Australian Competition & Consumer Commission, which previously had to seek Federal Court orders to force LG to compensate consumers after its faulty solar batteries caught fire.

LG Energy Solution, meanwhile, continues to battle Chinese giant CATL and others for global battery contracts, while also dealing with fallout from the recent detention of dozens of its employees and subcontractors during a U.S. immigration crackdown.

The company said its top leaders now share a “heightened sense of crisis,” agreeing that decisive leadership and swift execution are essential to improve productivity and cut costs through AI.

“This is a moment we cannot miss,” LG said in a statement. “Clear leadership goals and swift action are indispensable.”

Koo also urged executives not to lose sight of employee safety, calling a company “a place where employees spend more time than at home” and stressing the need to balance performance with worker wellbeing.