Jaecheol Ryu, LG Electronics CEO: "This Year Marks the Inaugural Year for Robotics Business... Advancing Home Robots and Actuator Supply"

Ryu Jaecheol Highlights Robotics at First Shareholders' Meeting
Full-Scale Push to Supply Actuators to Global Clients
"A Turning Point as Global Supply Chains Are Reorganized"
Emphasizes Shift to High-Performance Portfolio

Jaecheol Ryu, CEO of LG Electronics, stated at his first regular general meeting of shareholders since taking office that, "We will make this year the inaugural year for fully launching our robotics business and will swiftly execute detailed strategies." LG Electronics plans to establish a mass production system for robot actuators within this year and officially begin full-scale operations in this business area.

At the annual general meeting held on the morning of the 23rd at LG Twin Towers in Yeongdeungpo-gu, Seoul, CEO Ryu said, "Recently, advancements in physical AI and robotics technologies have been progressing at a pace that exceeds expectations." He continued, "Among the many business opportunities emerging from the expansion of artificial intelligence, LG Electronics will strategically foster four major areas—robots, AI data center cooling solutions, smart factories, and AI home solutions—where we can leverage our unique business capabilities and create synergy for scalable growth."

He particularly announced the company's push into the actuator business, which is a core component of robots. CEO Ryu explained, "We will directly design and manufacture actuators, which account for over 40% of a robot's production cost, and supply them to global robot manufacturers as part of a full-scale B2B component business." He added, "Based on our industry-leading motor technology for home appliances and a mass production infrastructure capable of manufacturing 45 million units annually, we will build a lineup optimized for various customer requirements and robot types."

LG Electronics also aims to accelerate its home robot business by utilizing lifestyle environment data acquired through its AI-powered home appliances. The company plans to strengthen collaboration with global big tech companies and maximize synergy with related capabilities within the LG Group affiliates.

Jaecheol Ryu, CEO of LG Electronics, is explaining the company's 2026 business direction to shareholders at the 24th Annual General Meeting held on the 23rd at the LG Twin Towers in Yeouido, Seoul. LG Electronics.

For the AI data center (AIDC) cooling solutions business, LG Electronics will expand its lineup to include next-generation liquid cooling technology as well as air-cooled solutions, aiming to become a core infrastructure partner for global big tech companies.

Having taken office as the new CEO at the end of last year, CEO Ryu presented the company-wide business operation direction for this year. He assessed the current management environment by saying, "LG Electronics stands at an inflection point where AI is transforming the business foundation and global supply chains are being reorganized. While market uncertainty has increased, this is also a decisive opportunity to enhance the company's growth density."

He further emphasized the company's plan to "demonstrate a robust foundation for growth that remains unshaken by any external environment through a transition to a high-performance portfolio based on fundamental competitiveness." To achieve this, he outlined four strategic directions: ▲ widening the competitive gap in core businesses, ▲ selective focus and investment in high-profit businesses such as B2B, platforms, and D2X (data-driven businesses), ▲ strategic fostering of future growth engines, and ▲ innovation in ways of working through AX (AI transformation).

To widen the competitive gap in core businesses, LG Electronics plans to pursue a strategy that simultaneously secures product leadership and cost competitiveness, thereby creating a virtuous cycle of sales, profit, and brand value.

Most importantly, the company will focus on strengthening product leadership, which is the essence of the business, to enhance customer-perceived value. By introducing innovative products that not only improve functionality but also change market dynamics in a timely manner, LG Electronics aims to solidify its premium market position by leading with quality and performance rather than price competition. The company will also work to enhance the competitiveness of its manufacturing ecosystem to speed up product launches and significantly reduce manufacturing costs.

High-profit businesses will be fostered through selective focus. LG Electronics plans to further expand its investment ratio in growth businesses such as B2B, platforms, and D2X, with the goal of increasing both sales and profits from these businesses by 1.7 times and 2.4 times, respectively, compared to last year, by 2030.

For the heating, ventilation, and air conditioning (HVAC) business, the company will build a locally integrated business system to target the high-growth potential North American unitary and European heating markets. For the vehicle component business, LG Electronics will focus on developing AIDV (AI-driven vehicles) solutions and securing essential technologies for integrated infotainment and advanced driver assistance systems (ADAS) modules to preempt future order opportunities. The webOS-based advertising content platform business will focus on expanding its user base and strengthening content competitiveness. The company will also continuously reinforce its D2X business, which is developed through various customer touchpoints such as online and subscription services.

Kim Changtae, Vice President and Chief Financial Officer (CFO) of LG Electronics, is responding to shareholder questions at the 24th Annual General Meeting held on the 23rd at LG Twin Towers in Yeouido, Seoul. LG Electronics.

Meanwhile, at the shareholder meeting held on the same day, LG Electronics appointed Sujin Kang, an outside director, as the first-ever outside director to serve as chairman of the board. CEO Ryu was appointed as the sole representative director.

During the Q&A session with shareholders following the meeting, when asked whether the direction of the robotics business was too dispersed, CEO Ryu responded, "Next year, Cloyd will move out of the laboratory and be deployed in real-world settings." He added, "After conducting various proof-of-concept (POC) projects, we aim to focus on areas where robots can excel and where LG has competitive strengths."

Another shareholder referred to LG Electronics’ market capitalization ranking falling to 45th in the KOSPI and pointed out that the company is "being treated unreasonably by the market." In response, Kim Chang-tae, Vice President and Chief Financial Officer (CFO), stated, "We are also deeply concerned about LG Electronics' stock performance, and we promise to work harder to deliver better results for our shareholders."

This content was produced with the assistance of AI translation services.