LG Electronics Launches Initiative to Discover and Nurture Promising Home Appliance Startups

[Asia Economy Reporter Suyeon Woo] LG Electronics is launching an initiative to discover and nurture promising startups to strengthen future competitiveness in the home appliance sector.

On the 6th, LG Electronics announced that it will hold the 'LG Home Tech Innovator' competition to select startups in the home appliance field in collaboration with the Seoul Creative Economy Innovation Center. Startups wishing to participate can apply through the domestic startup event platform, Eventus, by the 30th of this month.

Since the home appliance business involves products directly related to daily life necessities such as clothing, food, and shelter, understanding the needs of actual users is crucial. Through this competition, LG Electronics plans to discover startups with technologies and ideas specialized in home appliances from the customer's perspective rather than the manufacturer's.

The recruitment areas include Digital Transformation, new business-related technologies, products, business models, and ESG (environment, social, governance). Eligible startups include those with ▲ AI services that can be linked with LG’s home appliance and smart home platform, the LG ThinQ app ▲ metaverse technologies and commercialization models that can implement virtual, augmented, and mixed reality in connection with LG appliances ▲ home appliance-related component technologies and accessory business models that can provide new value to customers ▲ new home appliance product ideas that can lead trends by generation and space ▲ and business technologies and ideas addressing environmental risks such as climate change and resource circulation.

LG Electronics will select up to 10 projects from the applicants and support a proof of concept (PoC) process for about three months. To this end, it will provide commercialization support funds of up to 10 million KRW for prototype development. Early next year, together with startup investors such as accelerators (AC) and venture capitalists (VC), LG Electronics will evaluate the projects from a business feasibility perspective and select up to three teams as the final winners.

LG Electronics will grant the final selected startups the 'LG Home Crew' membership, a certification that allows them to publicly use their status as LG Electronics partners in marketing and other external activities during the commercialization process. The company will actively support rapid commercialization and growth through business know-how and technical mentoring.

Through this contest, LG Electronics plans to create a unique startup ecosystem to strengthen the future competitiveness of its home appliance business. Notably, this contest uses the 'Venture Client' model, which strategically fosters innovative startups through win-win cooperation rather than traditional equity investment. Through this, LG Electronics secures partners for new growth engines, and startups gain LG Electronics as a customer while receiving various supports to rapidly develop their technologies and business models.

Ryu Jae-cheol, Vice President and Head of LG Electronics H&A Business Division, said, "We will discover capable startups and nurture them as future core partners to lead the global home appliance market together with LG Electronics, the home appliance powerhouse."

This content was produced with the assistance of AI translation services.