‘Samsung Humanoid’ Countdown... LG, Hyundai Motor Kick Off the Robot Wars [Weekend Money]

Samsung Electronics Establishes Robotics Division Reporting Directly to CEO
19 Trillion Won Investment in Gumi, Mobilizing Affiliates for an "All-In" Approach
LG and Hyundai Motor Also Restructure... Shifting from Research to Commercialization

"Robots are the future growth engine for Samsung."

On July 22nd (local time), TM Roh, President and Head of DX Division at Samsung Electronics, made this statement immediately after the 'Galaxy Unpacked' event in London, UK. Given that this was said at the very spot where the new Galaxy was unveiled to the world, it naturally sparked speculation that Samsung aims to continue its 'Galaxy mythos' this time through robots. Recent actions by Samsung Electronics clearly signal a determination to make 'humanoid' robots that walk and use their hands like humans the next growth engine after smartphones.

Mirae Asset Securities pointed out in a report published on July 23rd that Samsung Electronics is elevating its robotics business from the stage of equity investments and securing advanced technology to a full-scale commercialization phase. The implication is that the focus of domestic conglomerates' robotics competition is shifting from 'who possesses more technology' to 'who is the first to validate it in the field and commercialize it.'

Robotics Organization Now Reporting Directly to the CEO

On July 21st, Samsung Electronics newly established the 'RX (Robotics eXperience) Business Promotion Office.' Up to this point, robotics strategy, R&D, and commercialization capabilities had been scattered throughout the company; now, they are combined into a single organization. This team will operate under the direct supervision of President TM Roh. This means that the company's highest decision-maker will oversee the robotics business personally.

The people also draw attention. The head of the Robotics Strategy Team is Vice President Donggun Lee, who previously oversaw business strategy at Boston Dynamics, Hyundai Motor Group’s robotics subsidiary. In addition, Professor Hyunjin Kim of Seoul National University (intelligent robot control) and Professor Eui-Kyum Kim of Ajou University (robot hands) will join to be responsible for the ‘brain’ and ‘hand’ technologies of the robot, respectively.

Sunyoung Park, analyst at Mirae Asset Securities, emphasized, "This organizational restructuring signifies that Samsung Electronics has entered the stage of directly commercializing robotics as a next-generation growth engine, going beyond the conventional phase of developing advanced technologies." It’s not just the name of the organization that has changed—the company now places a different level of importance on robotics.

Samsung Possesses Semiconductors, Home Appliances, and Smartphones...The Ideal Environment for Internal Testing

(from left) Rainbow Robotics' previously developed quadruped robot, mobile dual-arm robot, collaborative robot

The roadmap Samsung Electronics has laid out is clear. The plan follows a three-step process: first, use robots in its own business sites; next, sell industrial (B2B) robots; and finally, expand to home (B2C) robots. Factories have set work environments with many repetitive tasks, making them easier spaces for robots to learn, while households have many variables and much higher complexity. This is similar to Tesla first verifying its 'Optimus' robot in its own factories before selling it externally.

Analyst Park explained, "With its diverse manufacturing bases, including semiconductors, smartphones, and home appliances, Samsung Group has a structural strength—the ability to repeatedly verify the performance and cost-effectiveness of robots internally before seeking out external clients."

The stage for this verification will be Gumi. Samsung Electronics plans to invest 19 trillion won in Gumi to build a humanoid mass production system and a ‘robot data factory’ (an infrastructure where data accumulated by working robots is collected to train AI). The company will not act alone. Samsung SDI is preparing mass production of humanoid batteries in Ulsan with a 16 trillion won investment, and Samsung Heavy Industries is investing 10 trillion won in Geoje to establish an autonomous shipyard. The total investment by the group for this one robotics initiative is estimated to be around 60 trillion won.

Robotics Competition Heating Up...What Should Investors Look at?

Hyundai Motor Group's robotics subsidiary, Boston Dynamics, released a video on May 5th (local time) through YouTube showcasing the operational model of the humanoid robot 'Atlas'. The photo shows Atlas performing gymnastic movements. Screenshot from Boston Dynamics YouTube

Samsung Electronics is not the only company moving in this direction. On the 27th, LG Electronics newly established a robotics business center reporting directly to the CEO, and Hyundai Motor Group reorganized its Robotics Lab under the Advanced Air Mobility Division. While the details differ, the key is similar—verifying performance in-house, accumulating data, and thereby enhancing versatility is at the core of these strategies.

Shares of domestic robotics-related companies have already experienced significant volatility. After slumping nearly half from their peaks due to weak results and a KOSDAQ downturn in mid-May, they rebounded with a buying surge on the 21st and 22nd following news of the organizational restructuring. This shows how sensitive investor sentiment is even to changes in organizational structure.

Analyst Park pointed out that investors should also pay attention to whether key component makers—such as those for speed reducers, actuators, motors, and sensors—can gain entry into the supply chain, not just focus on finished products. However, this premise is based on the actual realization of the roadmap and confirmation of mass production supply contracts.

There are still many milestones investors will need to check, including the joint development efforts between Samsung Electronics and Rainbow Robotics, the establishment of mass production systems at the Gumi site, and the deployment of finished robotic products in manufacturing settings. Analyst Park predicted, "In the short term, investment sentiment for the robotics sector should be entering a recovery phase. However, over the mid to long term, entry into the Samsung Group supply chain and obtaining mass production delivery references will emerge as key variables differentiating company performance and driving share price polarization."

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