LG Corp. is embarking on an ambitious journey beyond its traditional electronics domain. The company has announced a massive investment plan, pouring 100 trillion won ($74 billion) over the next five years into diversifying its business portfolio. LG's focus is shifting towards futuristic technologies such as artificial intelligence, biotech, and clean technology. The company will also continue to invest in areas like batteries, automotive components, and next-generation displays.
Investing in the Future: AI, Biotech, and Clean Tech
LG's commitment to this new direction is evident through the establishment of LG AI Research in 2020. The research unit has already launched innovative products, including an AI chatbot tailored for the chemical and pharmaceutical industries, a platform for discovering new materials and drugs, and a tool that converts text into images.
The tech giant has made significant strides in biotechnology. In 2023, it acquired AVEO Pharmaceuticals for $571 million, marking its entry into developing new medicines for conditions such as cancer. Further, LG Energy Solutions, which was separated from LG Chem in 2020 to concentrate on electric vehicle batteries, further highlights LG's dedication to sustainable technologies. This division made a splash in 2022 with a $10.7 billion IPO on the Korea Exchange.
How Foreign Investors Can Get In On the Action
For international investors, LG's strategic pivot offers a compelling opportunity. The company's investment in emerging technologies and its move away from conventional sectors suggest potential areas for growth. Investors should closely watch LG's advancements in AI, biotech, and clean technology, as these fields are poised for significant expansion in the near future.
LG's allocation of 55% of its investment to research and development underscores its focus on innovation and long-term growth. As LG bolsters its capabilities in smart manufacturing and core material development, investors may find compelling opportunities in its evolving business model.
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