LG Corp. to Invest $74 Billion in South Korea Over Next Five Years
LG Corp., one of South Korea’s largest conglomerates, has announced its plans to invest a whopping 100 trillion won ($74 billion) in the country over the next five years. This move is aimed at diversifying LG’s business portfolio and staying ahead of the curve in the rapidly evolving technology landscape.
At the company’s annual shareholder meeting in Seoul, LG revealed that it will allocate roughly half of its domestic investment towards future technologies. This includes promising sectors such as artificial intelligence (AI), biotech, cleantech, as well as other growth areas like batteries, automobile parts, and next-generation displays.
This significant capital injection in high-growth technologies will account for a staggering 65% of LG’s annual global investment. The conglomerate is committed to expanding its business portfolio, which currently generates the majority of its revenue from its petrochemicals affiliate, followed by its household goods and electronics units.
To support its vision, LG established an AI research unit, known as LG AI Research, back in 2020. Since then, it has successfully launched a range of AI-powered products. These include an AI chatbot designed specifically for chemical and pharmaceutical professionals, an innovative AI-powered platform for new materials and drug discovery, and a groundbreaking text-to-image generation tool.
Under the leadership of Chairman Koo Kwang-mo, who took over the reins of the conglomerate in 2018 following the passing of his adoptive father, Koo Bon-Moo, LG has also made strategic forays into the biotech and sustainable technology space. In 2023, LG Chem, a subsidiary of LG Corp., acquired AVEO Pharmaceuticals, a Nasdaq-listed company, for approximately $571 million. This acquisition facilitated LG’s expansion into the development of new medicines, with a specific focus on addressing diseases such as cancer.
Furthermore, LG Energy Solution, a spin-off from LG Chem formed in 2020, emerged as a frontrunner in the production of batteries for electric vehicles. In a monumental move, LG Energy Solution went public in 2022 on the Korea Exchange, raising an impressive $10.7 billion in what was the country’s largest initial public offering.
LG’s commitment to business diversification and strategic investment in high-potential industries showcases its determination to remain at the cutting edge of innovation. As the technology landscape continues to evolve, LG is poised to stay ahead of the curve and solidify its position as a global leader in the ever-advancing world of technology and beyond.
Analyst comment
Positive news. LG Corp.’s $74 billion investment over the next five years in South Korea will diversify its business portfolio and focus on high-growth technologies such as AI, biotech, cleantech, batteries, automobile parts, and displays. This strategic move will likely boost LG’s position as a global leader in technology and drive further innovation in these sectors.
