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LG Corp. Chairman Koo Kwang-mo (second right) visits LG Electronics R&D center in South Korea (Courtesy of LG Group) LG Group, South Korea’s fourth-largest conglomerate, is set to pour $34 billion into the battery, automotive electronics and other future growth sectors in the country as it aims to take the lead in those industries around the world.The group on Thursday unveiled a plan to spend 43 trillion won ($33.9 billion) on battery, battery materials, automotive electronics, next-generation displays, artificial intelligence and data, as well as eco-friendly clean technologies by 2026 out of its total domestic investment of 106 trillion won. That is the chaebol’s largest-ever domestic investment.“It has decided to make the bold investments to further strengthen its global competitiveness and prepare for a sustainable future in a pre-emptive manner despite growing uncertainties in the management condition,” the group said in a statement.The conglomerate whose affiliates include LG Electronics Inc., LG Energy Solution Ltd. and LG Chem Ltd. is poised to invest 21 trillion won in the research and development on the future growth sectors among the total R&D spending of 48 trillion won.BATTERY AND MATERIALSLG Group sets the battery and its materials as the most important sectors with pouring more than 10 trillion won in the next five years.LG Energy, the world’s second-largest electric vehicle battery maker, will increase investment in its local factory to produce cylindrical batteries and others. The country’s top battery manufacturer also focuses on next-generation products such as solid-state batteries and lithium-sulfur batteries to lead the global industry. LG Energy's batteries (Courtesy of LG Group) LG Chem aims to become the world’s leading battery materials player with an investment of 1.7 trillion won in various ingredients such as cathode materials, separators and carbon nanotubes. LG Chem, which is a building a cathode plant in South Korea, is considering mergers and acquisitions or joint ventures with companies that have strong technologies and marketability.AI, DATA AND BIOThe group is set to invest 3.6 trillion won in the AI and data sectors to develop AI and big data technologies for all of its affiliates.It is also scheduled to spend 1.5 trillion won on the development of new drugs with LG Chem leading the group’s bio business.LG Chem is currently developing innovative new medicines including cell therapies with the goal to expand new drug pipelines ready for clinical trials. To achieve the target, the company is mulling various strategies such as M&As or JVs. LG Chem’s bioscience researchers work on new drug development (Courtesy of LG Group) The group plans to spend 1.8 trillion won in the eco-friendly clean technology sectors such as renewable energy industrial materials by 2026.For the existing core businesses such as smart home appliances, TV, petrochemicals, information technology and telecommunication, the group aims to develop them into global leaders.LG Corp. Chairman Koo Kwang-mo is scheduled to meet with executives of each affiliate from May 30 to check strategic directions related to the long-term investment plans, a group official said.The group decided to hire about 10,000 staff a year by 2026 with employing more than 3,000 experts a year in AI, software, big data, eco-friendly materials and batteries in the next three years.LG Group’s spending plans came as other conglomerates such as Samsung Group and Hyundai Motor Group announced massive investment plans after the country’s new President Yoon Suk-yeol took office earlier this month.By Ji-Eun Jeongjeong@hankyung.comJongwoo Cheon edited this article.
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