LG Electronics' Ambitious Investment Strategy: $39.5 Billion Aimed at $79 Billion Sales Target by 2030

LG Electronics has announced its ambitious plans to invest $39.5 billion (50 trillion won) in research
(Image credit: LG Electronics)

LG Electronics has announced its ambitious plans to invest $39.5 billion (50 trillion won) in research and development, facilities, and strategic investments as it aims to achieve sales of $79 billion (100 trillion won) by 2030. The South Korean electronics and appliances giant, formerly a prominent player in the smartphone industry, has unveiled its new strategy of transforming into a platform-based tech company focused on home appliances and electronics.

LG plans to fortify its service platforms for home appliances, including TVs and white goods, while leveraging its B2C market experience to bolster its B2B units. Additionally, LG seeks to accelerate its expansion in emerging sectors such as electric vehicle (EV) charging and digital healthcare.

This announcement comes about two years after LG's decision to globally shut down its loss-making mobile phone business in 2021. The company has since redirected its focus towards smart homes, connected devices, the Internet of Things (IoT), B2B solutions, EV components, robotics, artificial intelligence (AI), and platforms.

William Cho, CEO of LG Electronics, stated that the company aims to transform itself into a smart life solutions company that expands customers' spaces and experiences, moving beyond its current position as a leading home appliance brand. LG plans to innovate its work processes and communication methods to achieve this vision.

In addition to manufacturing and selling TV devices, LG intends to offer webOS as a service platform provider. For instance, the company already sells nearly 200 million smart TVs equipped with webOS, providing tailored advertising and access to TV and entertainment content from over 3,000 broadcasting channels this includes a global network of 2,500 partners, encompassing various on-demand streaming platforms and other industry players.

LG also plans to explore the development of a home energy platform that integrates heating, ventilation, and air conditioning (HVAC), energy storage systems (ESS), and EV chargers.

Furthermore, LG aims to enter the digital healthcare sector through collaborations with its internal startup incubator, LG Nova, based in North America. Moreover, the company is currently in the process of setting up a venture capital unit dedicated to providing support for startups.

LG has been actively expanding into emerging sectors through acquisitions, including automotive lighting provider ZKW based in Austria, U.S. ad tech firm Alphonso, automotive cybersecurity startup Cybellum, and South Korean electric vehicle battery charger developer AppleMango (renamed HiEV Charger). The company recently initiated EV charger production in Seoul and established a separate EV-focused subsidiary called Vehicle Component Solutions (VS) Company in 2013, specializing in infotainment, telematics, and Advanced Driver-Assistance Systems (ADAS).

LG Electronics has forecasted record-breaking revenue of 19.9 trillion won ($15.2 billion) for the April to June quarter, with the full earnings report set to be released at the end of July.