LG Electronics is launching a new Robotics Business Center directly under the Chief Executive Officer’s (CEO) supervision. This strategic move aims to accelerate growth in the robotics sector, which the company is cultivating as a flagship future business based on physical artificial intelligence (AI). The center will consolidate crucial competencies needed for commercialization, from identifying business opportunities to enhancing operations across the supply chain and manufacturing processes.
On Tuesday, LG Electronics announced the organizational restructuring that establishes the Robotics Business Center. Song Si-yong, who has previously led the Manufacturing Capability Enhancement Division, Production System Solutions Division, and Smart Factory Solutions Center, will spearhead this new organization.
This targeted reorganization comes about four months ahead of the regular year-end restructuring, underscoring LG Electronics’ strategic emphasis and commitment to developing its robotics business driven by physical AI technologies.
The new Robotics Business Center will function as a fully integrated business unit, encompassing business development, sales, and operations.
Within the center, a dedicated team will oversee a robot learning data factory. This initiative aims to quickly secure capabilities in data factory operations, which are viewed as critical for future robot competitiveness. By leveraging high-quality data generated from this factory, the company plans to refine its Robot Foundation Model (RFM) and create tangible business synergies.
LG Electronics expects this reorganization to enhance governance in its robotics business, leading to more efficient decision-making, agile strategy formulation and execution, core technology internalization, and improved cost competitiveness. These improvements are anticipated to accelerate the overall execution of the company’s robotics initiatives.
Moreover, operating the robotics business as an integrated organization will facilitate collaboration under the One LG approach, leveraging capabilities from LG subsidiaries such as LG CNS and LG AI Research Institute, while also expanding partnerships with global tech giants.
LG Group stands out as the only South Korean company with comprehensive capabilities spanning from humanoid robot brains to essential components like sensors, joints, and batteries. Following Chairman Koo Kwang-mo’s appointment, the group expects to leverage synergies from the independent technologies and expertise accumulated across LG subsidiaries in the emerging physical AI era.
LG Electronics plans to target the robot market comprehensively through a three-pronged approach: industrial and commercial robots developed by its subsidiaries Robostar and Bear Robotics, complemented by home robots from the new Robotics Business Center. This diverse robot portfolio, covering various industries, services, and living spaces, positions the company to proactively address future market demands.
Viewing this year as foundational for its robotics business, LG Electronics is ramping up efforts in this domain. The company aims to evolve into a comprehensive robotics solution provider, offering finished robot products, core components like actuators, and data factory capabilities for robot learning and data generation.
At its Yangjae Research and Development (R&D) Campus in Seoul’s Seocho district, LG Electronics is constructing a large-scale robot learning data factory, slated to begin operations this year. Leveraging over six decades of motor technology expertise, the company is also preparing to domestically produce actuators, crucial robot components, and plans to commercialize these for external customers.
