LG Electronics Creates Dedicated Robotics Business Center to Drive Market Expansion

LG Electronics has unveiled plans to launch a Robotics Business Center designed to bring together the full range of capabilities required for advancing robotics commercialization. The initiative encompasses business development, supply chain coordination, and manufacturing operations, with the new unit reporting directly to CEO Lyu Jae-cheol.

The organizational restructuring takes effect from July 1, 2026, representing an off-cycle realignment that arrives four months ahead of LG's standard annual reshuffle. This accelerated timeline underscores the company's determination to prioritize robotics as a cornerstone of its future business strategy, particularly within the Physical AI domain.

Song Si-yong, who brings extensive experience from his tenure leading operations at LG's Production Engineering Research Institute, will head the Robotics Business Center. The unit will function as a comprehensive business organization managing all aspects of sales, operations, and strategic development.

A key component of the initiative involves establishing a dedicated data factory organization within the center. This facility aims to capture high-quality operational data that will feed into the advancement of LG's Robot Foundation Model (RFM). The company is constructing a large-scale data factory at its Yangjae R&D Campus in Seoul, with plans to commence operations this year. The data infrastructure is intended to strengthen LG's technological edge in next-generation robotics and support the training of robotic systems.

The new governance framework is structured to enhance decision-making agility and efficiency across the robotics business. By consolidating operations within a self-contained unit, LG aims to accelerate strategy formulation, internal technology development, and cost competitiveness improvements. The center is also positioned to leverage broader LG Group resources through its "One LG Solution" approach, tapping expertise from affiliated entities including LG CNS and LG AI Research. Additionally, the structure is designed to facilitate deeper collaborations with international technology partners.

LG's robotics ambitions rest on a three-pronged approach targeting industrial, commercial, and residential applications. The Robotics Business Center will integrate with LG's existing robotics portfolio, which includes home robots, the industrial robotics capabilities of Robostar, and the commercial robotics expertise of Bear Robotics. This integrated approach creates a multifaceted business model capable of addressing diverse market demands across different sectors.

The company has designated the current year as the launching phase for its robotics business expansion, with aspirations to establish itself as a leading Physical AI solution provider. LG's strategy combines finished robotic products, essential components such as actuators, data generation infrastructure, and the conglomerate's comprehensive ecosystem to support real-world commercialization efforts. The company is also preparing to manufacture actuators domestically, drawing on more than six decades of motor technology development to ensure future supply chain resilience.