LG Group enjoys rosy market outlook for robot business

LG Electronics' CLOiD robot makes a heart with its hands at CES 2026 in Las Vegas, Jan. 6 (local time). Yonhap

LG Group companies are enjoying a rosy market outlook as expectations surrounding their robotics business plans continue to drive up stock prices.

The stock price of LG Electronics closed at 237,000 won ($157) on Friday, up 68.2 percent from 140,900 won on April 30. Its market capitalization stood at 38.6 trillion won, ranking 23rd among companies listed on the benchmark KOSPI. The stock also hit the daily upper trading limit of 30 percent on Thursday, a rare occurrence for a large-cap company.

Similar patterns are being observed among affiliates with business related to the robotics sector.

During the same period, electronics parts firm LG Innotek stock enjoyed a 50.8 percent increase, while IT system company LG CNS rose 28 percent and LG Display gained 23.6 percent. Buoyed by strong performances from its affiliates, holding company LG Corp. also posted a 19.6 percent increase.

Analysts said the companies’ robotics-related business plans appear to have received a favorable response from the market.

“LG Electronics revealed plans at its shareholder meeting in March to establish a mass-production system for humanoid robot actuators within this year and conduct Proof of Concept (PoC) projects for its humanoid robot CLOiD in 2027,” Hana Securities analyst Kim Min-kyung said. “Given that the company has moved up the PoC timeline to the first half of 2026, LG Electronics appears to be aggressively accelerating its robotics business.”

LG Electronics unveiled its home humanoid robot CLOiD at CES in January, signaling its strategic shift from home appliance giant toward robotics. At the time, some raised concerns that the robot’s sophistication lagged behind leading industrial humanoid robots, but LG Electronics appears to be targeting the home-use segment by seeking a balance between performance and affordability.

Market expectations are particularly focused on its actuator business. Actuators are joint-like components that move a robot’s arms and legs and can account for more than 40 percent of production costs. LG Electronics plans to design and manufacture the components in-house and supply them to global robot makers as part of its business-to-business strategy.

Formalizing cooperation with Nvidia in robotics and physical AI is also seen as a major strength. LG Electronics said during its earnings call last month that it is conducting joint reference model development and advanced research projects with Nvidia.

LG CNS is also drawing market attention for its robotics operation and training system business, as the advancement of robotics industries is expected to increase demand for IT systems tailored to specific situations and environments.

“As companies grow larger, the need to build private AI models is increasing, rather than simply using existing frontier models,” Mirae Asset Securities analyst Lim Hee-seok said. “Demand for AI systems built on proprietary data and internal business systems is expected to expand rapidly, particularly in the financial, public and manufacturing sectors.” Lim projected that LG CNS’ smart engineering revenue will reach 1.37 trillion won next year, up 8 percent year-on-year.

A humanoid robot named "Schotti" searches for an item at a Sonderpreis Baumarkt hardware store during a press event in Pocking, Germany, May 22. EPA-Yonhap

Some question whether the current rally in LG affiliates is based on hopeful scenarios, while proven commercial successes or tangible monetization plans have yet to materialize.

“Despite the market attention, clear gaps remain between LG Electronics and global robotics leaders such as Tesla, Figure AI and Boston Dynamics in the humanoid sector, while Chinese companies have already established strong dominance in the low-end market,” an industry official said.

“Given the scale of investment that will be required going forward, it also remains to be seen how much the company’s existing home appliance business can support its financial strength.”