LG Electronics Creates CEO-Direct Robotics Center to Speed Future Growth Push

LG Electronics Inc. is raising its robotics business to a unit that reports directly to the chief executive officer as it looks to speed commercialization in what it sees as a key future business built on physical AI.

The company said June 30 it will establish a Robotics Business Center effective July 1 as part of an organizational reshuffle. The new unit will report directly to Chief Executive Officer Ryu Jae-cheol.

The center will be led by Song Si-yong, who previously served as head of manufacturing capability enhancement, head of production system solutions and head of the Smart Factory Solution Center under the Production Engineering Research Institute.

The move is a one-point reorganization carried out more than four months ahead of LG Electronics' regular year-end overhaul. It underscores the company's view of robotics as a flagship future business based on physical AI.

LG Electronics plans to run the Robotics Business Center as a fully integrated business organization covering business development, sales and operations.

The new center will also house a dedicated organization for a robot-training data factory. LG Electronics plans to secure data-factory capabilities early and use high-quality data accumulated through operations to upgrade its RFM, or Robot Foundation Model.

The goal is to generate synergies by linking the robotics business with data-driven technology capabilities.

LG Electronics said the reorganization will strengthen governance in its robotics business. It expects the new structure to streamline decision-making and accelerate strategy, execution, 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 aims to strengthen cooperation from a One LG perspective by connecting the capabilities of affiliates including LG CNS and LG AI Research.

It also plans to broaden partnerships with global big tech companies.

LG Electronics will target the robot market across three segments: home, industrial and commercial. It plans to reinforce 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 first year of laying the foundation for its robotics business. Its goal is to become 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, regarded as a core robot 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 external customers.

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