LG Electronics CEO Ryu Jae-cheol: "This year marks the first year of our robot business... We will become a key actuator supplier"

Ryu Jae-cheol, CEO and president of LG Electronics, declared, "We will make this year the first year in which LG Electronics’ robot business enters full-scale operation." In particular, he laid out a plan to establish a mass-production system for actuators, which account for nearly half of a robot’s production cost, within this year and to position the company as a supplier that designs and manufactures these components in-house.
At the 24th Annual General Meeting of Shareholders held on the 23rd at LG Twin Towers in Yeouido, Seoul, Ryu said, "Market uncertainty has grown even greater, but at the same time it is a decisive opportunity to increase the intensity of our growth," outlining this vision.
This shareholders’ meeting was the first official occasion for Ryu to appear before shareholders since he took the helm of LG Electronics late last year. He personally briefed shareholders on LG Electronics’ strategic direction and presented robots as a core pillar.
Ryu noted, "If you look at the robot business LG Electronics has pursued so far, industrial robots and commercial robots have been the main focus," adding, "However, starting this year, we plan to significantly expand the business around CLOi so that it can be deployed not only in the home, but also in diverse areas such as manufacturing plants and logistics sites."
He went on to explain, "We will fully launch a Business-to-Business (B2B) components business by directly designing and producing actuators, which account for more than 40% of a robot’s cost, and supplying them to robot manufacturers around the world."
Actuators are core components that drive a robot’s arms, legs and joints, functioning as the "muscles" that actually move the robot. As the robot market is on the verge of full-scale takeoff, this segment is expected to grow into a field worth tens of trillions of won in the future. LG Electronics plans to accelerate commercialization starting this year, centering on its actuator brand "LG Actuator AXIUM," which it launched earlier this year at the Consumer Electronics Show (CES).
Ryu also spoke about the robot "CLOi" showcased at CES, saying, "Next year, CLOi will come out of the lab and be deployed to work directly in the field," and added, "We intend to focus on areas where robots can excel and where LG can demonstrate its strengths."
He further announced a goal to increase investment in B2B, platforms and Direct-to-Experience (D2X) businesses, and to grow their sales and profits by 1.7 times and 2.4 times, respectively, by 2030 compared with last year. In the heating, ventilation and air conditioning business, LG Electronics plans to strengthen its lineup of cooling solutions targeting the AI data center market and emerge as a key infrastructure partner for global Big Tech companies. Internally, the company will also redesign its work processes through AI Transformation (AX) and aims to boost work productivity by 30% within the next two to three years.
Meanwhile, all agenda items at the shareholders’ meeting, including approval of the financial statements, amendments to the Articles of Incorporation, approval of the retirement of treasury shares, election of directors and Audit Committee members, and approval of the limit on directors’ remuneration, were passed as originally proposed. Ryu Jae-cheol was newly appointed as an inside director, and Seo Seung-woo, a professor at the Department of Electrical and Computer Engineering, Seoul National University, was reappointed as a member of the Audit Committee.
one1@fnnews.com Reporter Jeong Won-il Reporter