Key Points

  • The new Robotics Business Center operates directly under the CEO, integrating business development, distribution, and operations into a comprehensive end-to-end business organization.
  • LG is strengthening its governance and management of the robotics business under the "One LG Solution" strategy by leveraging expertise from its subsidiaries and expanding its strategic partnership network with global technology leaders.
  • LG aims to expand its robotics business portfolio to cover household, commercial, and industrial sectors, aspiring to become a comprehensive robotics solution provider, from robots and core components to data factory operations.

LG Electronics Co., Ltd. has announced the establishment of the Robotics Business Center, focusing on consolidating essential core capabilities to drive the robotics business towards commercialization, from business development to supply chain and production management. This new center will operate directly under Mr. Ryu Jae-cheol, CEO, reflecting the company's commitment to accelerating growth in the robotics sector as one of its core future businesses.

Accelerating Robotics Business Growth through Organizational Restructuring

The Robotics Business Center will officially commence operations on July 1, 2026, as part of an off-cycle organizational restructuring, taking place four months ahead of the company's annual restructuring. This reflects LG's strategic commitment to driving a technology-driven robotics business powered by Physical AI, operating as a self-contained business unit covering everything from business development and sales to operations, led by Mr. Song Si-yong, a former executive from LG's Production Engineering Research Institute.

Additionally, the new Robotics Business Center will establish a dedicated Data Factory to serve as a crucial force in gathering and creating a database for robot training from the early stages. This is a key strategy to enhance LG's competitive capabilities in the next-generation robotics market. The high-quality operational data collected through this center will be used as a foundation to advance and optimize the basic artificial intelligence models for robots, or Robot Foundation Model (RFM), to be more advanced. To support this vision, LG is rapidly constructing a large Data Factory at the Yangjae R&D Campus in Seoul, which is scheduled to officially open within this year.

Strengthening Corporate Governance to Support Future Business Operations

This new management structure aims to elevate LG's robotics business through a more agile and efficient decision-making framework, designed to drive strategy formulation, core technology development within the organization, and enhance cost competitiveness.

As a self-contained business unit, this center will integrate the capabilities of LG's subsidiaries under the "One LG Solution" concept, combining expertise from subsidiaries such as LG CNS and LG AI Research to create comprehensive solutions. Furthermore, this structure will facilitate the expansion of strategic collaborations with global technology leaders.

Promoting a 3-Pillar Strategy to Lead the Robotics Market

LG will continue to drive its robotics business with a comprehensive 3-pillar strategy to seize growth opportunities in the robotics market for industrial, business, and residential sectors. The Robotics Business Center will strengthen LG's expanding robotics portfolio, covering home robots, industrial robotics expertise from Robostar, and commercial robotics expertise from Bear Robotics. This approach will help create a comprehensive business portfolio ready to meet future market demands across all sectors.

In terms of Physical AI solutions focused on robotics technology, LG will leverage its strengths in finished robotic products, core components like actuators, data generation capabilities, and a full-stack ecosystem of LG Group to support the practical implementation of solutions in various environments. Additionally, the company plans to produce actuators domestically, utilizing over 60 years of accumulated motor technology expertise to meet future industry demands.