Doosan Robotics' new CEO faces test of turning AI bet into profits
Doosan Robotics CEO Kwon Young-min / Courtesy of Doosan Robotics
Robotics firm urged to achieve major earnings rebound
Kwon Young-min, the newly appointed CEO of Doosan Robotics, faces the crucial task of turning the company’s artificial intelligence (AI)-driven robotics strategy into a profitable and sustainable growth engine.
The robotics arm of Doosan Group recently appointed Kwon, who has extensive experience in strategy and global operations, as its new top executive.
Kwon joined the group’s strategy and planning division in 2000, and served as chief strategy officer of Doosan Bobcat from 2018 to 2020 and has led Doosan Mottrol, a Doosan Bobcat subsidiary, since 2021, before taking on the new role.
His appointment comes as Doosan Robotics attempts to reposition itself from a manufacturer of collaborative robots into a provider of intelligent robot solutions combining hardware, software and AI.
The company has already laid out a strategy to integrate AI into its robotic arms and software, allowing customers to automate tasks with less programming while optimizing work routes and sequences.
The robotics firm has also been developing applications for manufacturing and logistics. Doosan Robotics has also placed a keen focus on industrial humanoid robots as a longer-term growth area.
For Kwon, however, the more difficult task will be turning that technological transition into a business that can generate sustainable earnings.
Doosan Robotics needs to establish where customers are willing to pay for AI-enabled capabilities, rather than simply adding AI functions to existing hardware.
This means the new CEO is urged to place a more strategic focus on developing solutions that can demonstrate measurable gains in productivity, labor efficiency and operating costs, so the firm can create recurring revenue opportunities beyond one-time robot sales.
Doosan Robotics Innovation Center in Bundang, Gyeonggi Province / Courtesy of Doosan Robotics
Doosan Robotics reported an operating loss of 19.2 billion won ($14 million) in 2023, and widened the loss to 59.5 billion last year, on the firm’s preemptive investment for swift transformation into an AI-powered intelligent robot solutions maker.
Scaling those solutions globally will be another key challenge. Kwon’s experience at Doosan Bobcat and Doosan Mottrol could be particularly relevant, as the company seeks to expand its customer base and strengthen its overseas operations.
Doosan has said the new CEO's global business and overall management experience will support the company’s medium- to long-term growth and competitiveness.
At the same time, Kwon will also need to balance near-term financial discipline with investment in AI and humanoid technologies. Doosan Robotics has been building capabilities in AI, software and next-generation robotics, making it increasingly important to allocate resources toward technologies with a clearer path to commercialization.
“The immediate test for Kwon, therefore, will not be whether Doosan Robotics can demonstrate smarter robots, but whether it can turn those robots into scalable solutions that customers repeatedly buy and that ultimately improve the company’s earnings profile,” an official from the robotics industry said.