This investment accounts for 65 percent of LG Group’s annual global investment…reports Asian Lite News
LG Group said on Wednesday it will invest 100 trillion won ($74.4 billion) in South Korea by 2028 to sharpen future technologies and seek new growth drivers.
Unveiled at the group’s annual shareholders meeting in Seoul, the long- and mid-term investment plan places an emphasis on advancing future technologies, including artificial intelligence, bio and clean tech, and pivotal business sectors, such as battery technology, auto parts, and next-generation displays, according to LG Group.
This investment accounts for 65 percent of LG Group’s annual global investment, reflecting the company’s commitment to driving innovation and fostering growth in its home market, it added, reports Yonhap news agency.
The company said some 55 percent of the planned investment will be allocated to research and development (R&D) initiatives aimed at establishing South Korea as a premier hub for innovation in key materials and manufacturing processes, including the development of smart factories.
“We will closely monitor the changes in the industries around us and create a solid business structure that can perform under any circumstances by strengthening the intrinsic competitiveness of the entire business,” LG Chairman Koo Kwang-mo was quoted as saying.
LG Corp., the holding company of LG Group, posted 7.4 trillion won in sales and 1.6 trillion won in operating profit last year
Meanwhile, LG Electronics said on Tuesday it has made a $60 million strategic investment in Silicon Valley-based startup Bear Robotics in a move to strengthen its business capabilities in the booming market of artificial intelligence-based service robots.
Under a new stock purchase agreement, LG Electronics will become the largest single shareholder in the US startup specialising in AI-driven autonomous service robots.
“Rather than seeking short-term returns, this strategic investment is aimed at bolstering LG Electronics’ portfolio for long-term growth,” the company said in a statement.
Founded in 2017 by former Google’s software engineer John Ha, Bear Robotics offers AI-powered indoor delivery robot services in the United States, South Korea and Japan, reports Yonhap news agency.
The startup is well known for its expertise in platformising service robotics software, robot fleet management technology and cloud-based control solutions.
LG Electronics said the latest investment is also in line with its long-term strategy to transition from a hardware-centric to a software-oriented company, following its exit from the mobile phone manufacturing business in 2021.
The move is also part of a broader strategy outlined by LG Electronics CEO Cho Joo-wan in January, which emphasized exploring investments or mergers and acquisitions within the service robotics market.
LG Electronics has already taken steps into this promising sector, operating a guide robot service at Incheon International Airport, west of Seoul, since 2017 and introducing delivery and disinfection solutions for diverse commercial settings.
The global service robotics market is anticipated to grow from $36.2 billion in 2021 to $103.3 billion by 2026, according to LG Electronics.