LG to inject $700 million in startups in West Virginia

CHARLESTON, WV – LG Electronics Inc. will form a fund with the State of West Virginia to inject $700 million over the next five years to foster new businesses in renewable energy, healthcare and industries of the future as part of the two parties’ efforts to reinvigorate the state’s economy.

According to the South Korean electronics giant’s North American Center for Innovation (LG NOVA) on Wednesday (local time), it will lead joint projects with the US state to discover promising startups in those sectors, which are expected to create 275 jobs in West Virginia and bolster the state’s economy with innovative technology development.

They will invest a total of $700 million from the so-called NOVA West Virginia Investment Fund over the next five years in those projects.

Invested by LG NOVA, West Virginia’s state government and other outside investors, the fund will play a role as an impact fund that aims to bring beneficial social and environmental effects to the state on top of financial gains, the company explained.

“This partnership with LG Electronics is a game-changer, and it’s going to create hundreds of good-paying jobs, spur investment in new technologies, and help us build an innovation corridor across the Appalachian region,” West Virginia Governor Jim Justice said during an event held on the same day to celebrate the launch of the LG NOVA-WV joint initiative.

Appalachia is made up of 13 states and spans 206,000 square miles, from southern New York to northern Mississippi. West Virginia is one of the 13 states.

The latest move is in line with LG NOVA’s plan to unearth new business opportunities in clean energy, healthcare and future technologies as part of LG Group’s efforts to nurture bio, clean and AI technologies as its next growth drivers.

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In August last year, the innovation center joined hands with global investment firm Clearbrook LLC to invest more than $100 million in a startup fund, dubbed NOVA Prime Fund, by 2024 to discover promising technologies in sustainable energy, digital health, AI and future industries.

Established in 2021, LG NOVA is the Korean electronics giant’s venture capital and startup incubating organization.

The Silicon Valley-based innovation center actively collaborates with startups and partners to build innovative ventures, according to LG.

It hosts the annual LG NOVA Innovation Festival in the US to cherry-pick rising startups.

“LG is committed to delivering solutions for digital healthcare and cleantech that have an impact on West Virginia and the rest of the world,” said LG Electronics Chief Executive Officer Cho Joo-wan.

The Korean home appliance giant last summer also unveiled its new business vision to transform into a smart life solution provider connecting various consumer experiences.

Write to Ik-Hwan Kim at lovepen@hankyung.com

Sookyung Seo edited this article.