LG Group chief encourages R&D in AI, bio, clean tech sectors

Koo Kwang-mo, CEO of LG(center), attending the executive workshop held on September 25 at the LG Leadership Center in Icheon, Gyeonggi Province. (LG Group)

LG Corp. Chairman and Chief Executive Officer Koo Kwang-mo is exploring ways to create a long-term vision for LG Group’s core growth areas during the ongoing group-wide business review sessions.

According to LG Group on Sunday, the conglomerate has been conducting business review meetings since October 21, starting with its electronics affiliates and progressing through its chemical, telecommunications and service affiliates.

The meeting session brings together top executives of major subsidiaries to evaluate the year’s performance and discuss plans for the next year.

First-half meetings typically focus on future strategies, while second-half meetings review annual performances and planning.

Year-end personnel changes and organizational restructuring follow these reviews.

Koo is reportedly focusing on reviewing research and development (R&D) strategies in the group‘s strategic growth sectors: artificial intelligence (AI), biotech and clean tech.

Koo and other executives are deliberating ways to gain an edge in a competitive global marketplace and accelerate growth in future-oriented businesses, while evaluating overall portfolio strategy across businesses, products and regions.

Reflecting Koo’s commitment to discovering new growth drivers, LG is expanding its investments in the three sectors.

LG Technology Ventures, the corporate venture capital arm of LG, has allocated over 50 percent of its cumulative 500 billion won ($360 million) in investments toward AI, bio, clean tech, and healthcare.

Investments have also accelerated, with LG backing one AI startup, one bio startup, and two clean tech startups between July and October this year.

In particular, LG Technology Ventures invested in Poolside, an AI coding software developer, in August, as part of a $500 million funding round led by Bain Capital Ventures.

Other investments this year include those in Liminal Insights Inc., a battery manufacturing solutions provider, and Unigrid Inc., a sodium-ion battery developer.

In October, LG reportedly invested in MEDIC Life Sciences, a developer of a genomics screening platform, which collaborates with major global pharmaceutical companies on anti-cancer drug research.

New businesses are already yielding results.

In the clean tech sector, LG has developed AI-powered solutions that reduce battery cell design time from over two weeks to just one day.

In the bio sector, AI is being used to analyze protein structures for new drug candidates, verifying over 1,000 substances in six months and accelerating new drug discovery.

LG plans to continue bolstering investments and R&D in the AI, bio, and clean tech sectors, refining its strategies for next year’s business plans.

Earlier, LG announced plans to invest 100 trillion won domestically over the next five years, allocating over half to future technologies and growth areas to secure a competitive edge.