LG Electronics to bolster robot biz: CEO

By Jun Ji-hye

BERLIN ― LG Electronics will continue to concentrate on expanding its robot business portfolio by actively pushing for mergers and acquisitions (M&A) with companies in possession of appropriate technologies to secure a future growth engine, the head of the company said Friday.

LG Electronics CEO and Vice Chairman Jo Seong-jin said the tech firm has signed M&A deals with several robot startups since last year and “will become more active in carrying out such deals and forming alliances with schools and research institutes” in order to expand cooperation with external partners.

He made the remarks during a news conference with Korean journalists on the sidelines of the Internationale Funkausstellung (IFA) Berlin, Europe's largest consumer electronics and appliance trade show that began Friday in Berlin.

“We have been thinking about how to apply artificial intelligence (AI) technology and big data to robots, which will be our differentiated points,” said Jo. “We have recently begun the robot business, but in fact our labs have conducted research for a long time. Once these are connected, the business will achieve results.”

LG Electronics has unveiled various robotic products equipped with smart technologies since it announced its plans last year to nurture the business as a future growth engine.

The company has since made equity investments in a wearable robot startup SG Robotics, a robot developer Robotiz, a robot emotion recognition start-up Acryl and an industrial robot maker Robostar as well as U.S. robot developer BossaNova Robotics.

The company has also set up global R&D centers in five regions, including the Toronto AI Lab, which was open Aug. 1, with the aim of carrying out various research through cooperation with the University of Toronto.

During the IFA, the Korean company showcased a wearable exoskeleton robot, called CLOi SuitBot, developed to help workers at construction sites and factories more easily lift and move heavy objects. The robot can also be used in everyday life and by those who have physical difficulties.

CEO Jo said the company created an office in charge of robotic products early this year.

“We will reinforce divisions and manpower dedicated to the robot business at the end of the year,” he said.

Jo also said the firm will continue to target the European market with its built-in appliances, though “it may take time” to see results.

“There are strong built-in brands in Europe such as Miele and Gaggenau, so it is difficult to create a brand,” he said. “It may take time in Europe, maybe more than in the United States or Korea, but we need to overcome it as premium appliances markets are limited.”

Earlier in the day, Jo opened the IFA with a keynote speech, during which he stressed the importance of AI in the consumer electronics industry.

He once again emphasized AI, saying, “AI is being applied to various products such as robots and cars as well as home appliances. It is not a matter of choice but the way that we must go.”