‘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

"Robotics is the future growth engine of Samsung."

On July 22 (local time), Tae Moon Roh, President and Head of the DX (Device eXperience) Division at Samsung Electronics, made this statement right after the “Galaxy Unpacked” event in London, UK. Given that these remarks came immediately after unveiling the new Galaxy devices to the world, many interpreted this as an indication that Samsung now aims to continue its “Galaxy legend” through robotics. Looking at Samsung Electronics’ recent moves, it is clear that the company is determined to make humanoid robots—machines that walk and use their hands like humans—its next growth driver after smartphones.

Mirae Asset Securities pointed out in a report published on July 23 that Samsung Electronics is elevating its robotics business from the stage of equity investments and securing advanced technologies to a full-fledged commercialization phase. The report noted that, among Korea’s major conglomerates, the focus of competition in robotics is shifting from “who has better technology” to “who will be the first to validate and commercialize their products in real-world environments.”

Robotics Organization Elevated to Direct Report to CEO

On July 21, Samsung Electronics established a new organization: the “RX (Robotics eXperience) Business Promotion Office.” Previously, robotics strategy, R&D, and commercialization capabilities were scattered across the company. Now, they have been consolidated into a single unit. This division reports directly to President Tae Moon Roh, meaning the company’s top decision-maker will personally oversee the robotics business.

Personnel appointments are also notable. The head of the Robotics Strategy Team is Executive Vice President Donggun Lee, who previously oversaw business strategy at Boston Dynamics (the robotics company under Hyundai Motor Group). In addition, Professor Hyunjin Kim of Seoul National University (intelligent robotics control) and Professor Euikyeom Kim of Ajou University (robotic hands) have joined the team, taking charge of the “brain” and “hands” technologies of robotics, respectively.

Sunyoung Park, a researcher at Mirae Asset Securities, commented, “This organizational restructuring signifies that Samsung is moving beyond the development stage for advanced technologies and has now entered the phase of directly commercializing robotics as a core next-generation growth driver.” In other words, it is not just a change in the department’s name—the company’s commitment to robotics itself is now on a different level.

Samsung, Equipped with Semiconductors, Home Appliances, and Smartphones... The Ideal Environment for Internal Validation

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

Samsung Electronics’ roadmap is very clear: first, use robots internally at its own business sites → next, sell them as industrial robots (B2B) → then, expand into home-use robots (B2C). Factories provide a controlled environment and repetitive tasks that are easier for robots to learn, while households present far more variables and much greater complexity. It’s the same approach taken by Tesla, which first validates its “Optimus” robots within its own factories before selling them externally.

Researcher Park explained, “Samsung Group, with its broad array of manufacturing bases in semiconductors, smartphones, and home appliances, possesses a structural advantage—it can repeatedly test and validate the performance and economic feasibility of robots internally before targeting external clients.”

The stage for this validation will be set in Gumi. Samsung Electronics is investing 19 trillion won in Gumi to build a mass-production system for humanoid robots and a “robot data factory” (an AI infrastructure where data generated by robots in operation is collected and used for learning). The company is not alone in this effort. Samsung SDI is investing 16 trillion won in Ulsan to prepare for mass production of humanoid robot batteries, and Samsung Heavy Industries is investing 10 trillion won in Geoje to build an autonomous shipyard. In total, investment across the Samsung Group for robotics is estimated to be around 60 trillion won.

Full-Scale Robotics Competition... What Should Investors Watch?

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 making such moves. LG Electronics on July 27 established a Robot Business Center reporting directly to the CEO, and Hyundai Motor Group has also reorganized its robotics lab under the Future Aerospace Mobility Division. While the specifics differ, the core strategy—demonstrate and validate in-house, collect data, and enhance universality—is similar across companies.

Korean robotics stocks have already experienced major volatility. After declining nearly 50% from their peak amid poor performance and a weak KOSDAQ since mid-May, the announcement of Samsung’s organizational restructuring on July 21 fueled two days of buying and a rebound. This demonstrates just how sensitive investor sentiment is to such structural changes.

Researcher Park noted that it will be important to pay attention not only to finished product manufacturers, but also to whether key parts makers—such as those involved in speed reducers, actuators, motors, and sensors—are included in the supply chain. However, this assumes that the overall roadmap takes concrete shape and that deliveries at mass-production scale are actually confirmed.

There are still many milestones left to be checked: the joint development between Samsung Electronics and Rainbow Robotics, the establishment of mass-production systems in Gumi, and confirmation of the deployment of finished robots in manufacturing fields. Researcher Park forecast, “In the short term, we may see a recovery in investment sentiment for the robotics sector. In the mid- to long-term, however, whether a company enters Samsung Group’s supply chain and can provide verified references for mass-production supply will become the key variables determining each company’s performance, which in turn will drive stock price differentiation.”

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