Koo Kwang-mo's ABC Gambit... Launching 100 Trillion Innovation

5-Year Plan to Invest 100 Trillion Won
Aggressive Investment in AI, Bio, and Cleantech
Designing the Future

LG Group surprised shareholders by announcing plans to invest 100 trillion won domestically over the next five years. This bold investment plan is interpreted as an effort to accelerate the future design centered on ABC (Artificial Intelligence, Bio, Cleantech) promoted by Chairman Koo Kwang-mo. Despite high uncertainties in the internal and external business environment, the strategy aims to pursue bold investments and innovations from the perspective of customer value.

First, LG will promote large-scale research and development (R&D) in the field of artificial intelligence (AI). The goal is to focus on the 'LG AI Research Institute,' developing the super-large AI EXAONE and AI R&D. The super-large AI will address issues within LG Group affiliates and increase collaboration with different industrial sectors to secure AI leadership early.

In the bio sector, investments will be made to develop innovative new drugs. LG Chem plans to expand its new drug pipeline. Various strategies, including M&A, will be reviewed, and efforts will focus on securing advanced bio technologies.

The cleantech sector, including bio-materials, renewable energy, and electric vehicle charging, will also be fostered. Notably, LG Chem aims to significantly increase the proportion of eco-friendly high-value new businesses and undergo a major transformation into a sustainable science company. LG Energy Solution has launched an in-house independent company related to renewable energy, and LG Electronics and LG Uplus are investing in the electric vehicle charging business, among other diverse efforts.

Additionally, investment plans are expected to be made to secure differentiated competitiveness in growth areas such as batteries, automotive parts, and next-generation displays.

LG’s investment plan announced on this day is a follow-up version of the 106 trillion won domestic investment plan announced in 2022 for five years. At that time, LG revealed the 106 trillion won investment plan, focusing on R&D, expanding cutting-edge high-value production facilities, and infrastructure construction, with 48 trillion won concentrated on R&D.

Since his inauguration in August 2018, Chairman Koo has devoted most of his time to managing a future portfolio that can become a growth engine in 10 to 20 years. His efforts to secure future growth engines are gradually yielding visible results. Recently, LG partnered with the Jackson Laboratory in the U.S., a world-renowned genome research institute that has produced 20 Nobel laureates, to combine LG’s AI technology with Jackson Laboratory’s genome research expertise to jointly develop treatments for intractable diseases such as Alzheimer’s and cancer. This initiative is said to be the work of Chairman Koo.

In a message read at the LG shareholders’ meeting, Chairman Koo said, “We intend to rapidly advance future businesses centered on AI, bio, and cleantech and develop them as a pillar of our future portfolio.”

Meanwhile, at the shareholders’ meeting, five agenda items were presented and all were approved as proposed, including approval of financial statements, amendments to the articles of incorporation, appointment of inside directors, appointment of audit committee members, and approval of director remuneration limits. Following the approval of the financial statements, LG decided to pay a cash dividend of 3,100 won per common share and 3,150 won per preferred share. With the approval of the articles of incorporation amendment, unlike before when the dividend amount was confirmed after the dividend record date (end of the fiscal year), the dividend amount will now be confirmed first, followed by setting the dividend record date. Additionally, Chairman Koo was reappointed as an inside director, and outside director Lee Soo-young was reappointed as an audit committee member.

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