LG Group earmarks $74 bn for 5-year investment in Korea

LG Group, South Korea’s No. 4 conglomerate, on Wednesday announced a plan to invest 100 trillion won ($74 billion) through 2028 in its future growth drivers at home, with a focus on artificial intelligence, biotechnology and clean technology, as well as automotive electronics and displays.

It will pour half of the money into the aforementioned sectors, which the group expects to lead the group's growth over the next decades.

LG Corp., the group’s holding company, unveiled the investment plan at an annual general meeting (AGM) of shareholders.

“Amid the continued economic slowdown and geopolitical risks, uncertainties in the global business environment are expected to increase in 2024. Inflection points such as the advance in AI and the transition to decarbonization become more evident,” Koo Kwang-mo, the group's chairman and chief executive, was quoted as saying.

LG Corp Vice Chairman Kwon Bong-seok read the statement on his behalf at the AGM.

“This year, we will focus even more on creating differentiated customer value and strengthening the fundamental competitiveness of our businesses.”

Some 55% of the 100 trillion won set aside for five-year domestic investment will be funneled into research and development on core materials such as battery materials and smart factories.

The spending will be equivalent to 65% of its global investments allocated for the same period.

The group's major subsidiaries include LG Electronics Inc., LG Energy Solution Ltd. and LG Chem Ltd.

Write to Chae-Yeon Kim at why29@hankyung.com
Yeonhee Kim edited this article.