LG Electronics Sets Up CEO-Direct Robotics Center to Speed Future Business Push

LG Electronics Inc. is elevating its robotics business into a unit that reports directly to the chief executive officer, as it moves to accelerate commercialization in a field it sees as a key future business built on physical AI. The company plans to bring business development, sales, supply chain and manufacturing operations under a single organization.

LG Electronics announced on June 30 that it will implement the reorganization on July 1 by creating a new Robotics Business Center. The unit will operate under Chief Executive Officer Lyu Jae-cheol. Song Si-yong, who previously served in roles including head of manufacturing capability enhancement, head of production system solutions and head of the Smart Factory Solution Center under the Production Engineering Research Institute, will lead the center.

The move is a one-off reorganization made about four months ahead of the company’s regular year-end reshuffle. It underscores LG Electronics’ view of robotics as a flagship future business based on physical AI. The company will run the Robotics Business Center as a self-contained business organization with business development, sales and operations functions.

The center will also include a dedicated organization for a robot-training data factory. LG Electronics plans to secure data-factory capabilities early and use high-quality data accumulated in operations to advance its RFM, or Robot Foundation Model. The aim is to create synergies between its robotics business and data-driven technology capabilities.

LG Electronics expects the reorganization to strengthen governance over its robotics business by streamlining decision-making and accelerating business strategy, execution, the internalization of core technologies and efforts to improve cost competitiveness.

The company also plans to expand collaboration with other LG affiliates. Centered on the Robotics Business Center, it will strengthen cooperation from a One LG perspective by linking the capabilities of affiliates including LG CNS and LG AI Research. It also plans to expand partnerships with global big tech companies.

LG Electronics is targeting the robotics market across three segments: home, industrial and commercial. It plans to strengthen its industrial and commercial robotics base through subsidiaries Robostar Co. and Bear Robotics Inc., while adding a home robotics business through the new Robotics Business Center.

The company sees this year as the starting point for building the foundation of its robotics business. Its goal is to grow into a comprehensive robotics solutions company with finished robots, key components such as actuators, and a data factory for data generation and training.

LG Electronics is building a large robot-training data factory at its Yangjae R&D Campus in Seoul’s Seocho District, with operations targeted to begin within the year. For actuators, a core robotics component, the company is preparing for domestic in-house production based on more than 60 years of accumulated motor technology. It is also pursuing commercialization to supply them to external customers.

Hong Min-seong, Hankyung.com reporter mshong@hankyung.com