SEOUL: LG Electronics has issued an RFP for its global corporate PR AOR account.
WPP, the incumbent, has been invited to repitch for the business, said LG Electronics senior director of global corporate comms Ken Hong. LG is conducting a review as standard protocol, as the contract has ended.
Although the remit is global, Hong explained that the selected agency would not cover “every market, just the key ones that we have targeted for this initiative.”
“We have so many offices around the world and we didn't want to bite off more than we could chew,” he said.
The RFP is in its early stages, but the invitation phase has ended. Hong declined to disclose other firms or networks invited to pitch, but said the company is planning to select an agency by the end of the summer.
Rather than delaying the RFP due to the coronavirus pandemic, Hong said LG Electronics “believed that forging ahead was a good way to demonstrate that the show must go on and that LG is open for business as always.”
In 2016, LG Electronics retained WPP’s LG-One multi-agency team, which has worked on the account since 2009, to handle its global corporate communications work. The budget at the time ranged up to $10 million globally. As of the most recent review, LG-One was comprised of Ogilvy Public Relations and Hill+Knowlton Strategies. Ogilvy began integrating all of its agencies, including Ogilvy PR, under one P&L in 2017.
"We are proud of our 11-year relationship with LG, and we look forward to bringing even more creativity and innovation to their iconic global brand," H.S. Chung, president of Asia for Hill+Knowlton Strategies, said in an emailed statement.
Representatives from Ogilvy were not immediately available for comment.
LG Electronics, which has more than 70,000 employees globally, is made up of five companies: home appliance and air solution; home entertainment; mobile communications; vehicle component solutions; and business solutions. It makes products including mobile devices, TVs, washing machines and air conditioners.
LG’s Q4 2019 revenue was up 1.8% year-over-year to $13.7 billion, with operating income increasing by 34.5% to $86.5 million.