LG Electronics Partners with Logis Valley to Launch Smart Logistics Business

Logistics Automation with a Robot Lineup
Pre-Simulation Applied to Logistics Processes
Growth of the Global Smart Logistics Market

LG Electronics is partnering with Logis Valley, the largest integrated logistics company in South Korea. The aim is to expand LG Electronics' 'Smart Factory Solution' business into the logistics sector, thereby advancing into the field of 'smart logistics.'

On July 1, LG Electronics announced that it had recently signed a memorandum of understanding (MOU) with logistics company Logis Valley at LG Digital Park in Pyeongtaek, Gyeonggi Province, to collaborate on a smart logistics center project. The signing ceremony was attended by Jung Dae-hwa, President of LG Electronics' Production Technology Institute; Baek Ki-moon, Executive Vice President and Head of the ID Business Division; Lim Young-bin, Chairman of Logis Valley Group; and Kim Philip, CEO of Logis Valley.

Logis Valley, the largest integrated logistics company in South Korea, provides logistics center development and leasing, logistics consulting services, and operates more than 50 directly managed logistics centers worldwide for a wide range of domestic and international clients.

This agreement was pursued with the joint goal of providing customer-optimized, customized smart logistics solutions by combining the technological capabilities of LG Electronics' Production Technology Institute?such as autonomous driving robots and digital twin technology?with Logis Valley's expertise in the design, construction, and operation of logistics centers.

An autonomous driving robot developed by LG Electronics' Production Technology Institute transporting a kit for parts and material supply. LG Electronics.

Through this agreement, the two companies have agreed to work together to further advance smart logistics solutions and to jointly market these solutions to global customers. In particular, they plan to actively collaborate from the early stages of logistics center design to ensure that LG Electronics' smart factory solutions generate optimal synergy in the logistics centers constructed by Logis Valley.

LG Electronics' smart factory solutions include industrial robots; production system design, monitoring, and operation utilizing digital twins; and process, safety, and quality management based on big data and generative AI. LG Electronics expects that applying these solutions to the logistics sector, where efficiency and accuracy are key values, will create significant synergy.

Based on LG Electronics' lineup of robots, including autonomous driving robots equipped with robotic arms, logistics processes that require large numbers of personnel?such as box picking (packing by box)?can be automated. Vision AI (artificial intelligence) is also used to minimize errors in packaging and cargo sorting operations.

Additionally, leveraging know-how gained from operating smart factories and managing and supplying manufacturing parts, LG Electronics can provide automated solutions that classify and store goods in logistics centers with optimal space efficiency and dispatch them using robots.

The digital twin technology?which replicates real-world objects and systems in the digital world?is another key feature. By creating virtual logistics centers and simulating cargo flows in advance, robot solutions can be designed to optimize the structure of each logistics center. Digital twin technology also enables real-time monitoring of logistics sites, allowing for the early detection of factors that could disrupt logistics flows and enhancing overall efficiency.

Beyond supplying smart logistics solutions to external clients, the two companies also plan to apply customized solutions to Logis Valley's directly managed logistics centers and LG Electronics' home appliance logistics centers to enhance their own logistics efficiency.

According to market research firm Fortune Business Insights, the global smart logistics market is projected to grow from approximately $88.1 billion in 2025 to about $212.8 billion in 2032, with a compound annual growth rate of 13.4%.

The two companies have also signed a business cooperation agreement for LG Electronics to supply commercial display products to a mixed-use commercial facility development project that Logis Valley is undertaking in the West Lake area of Hanoi, Vietnam.

LG Electronics offers a platform called 'LG Business Cloud,' which brings together a lineup of display products optimized for various commercial spaces?such as 'Hotel TV,' which allows hotel guests to enjoy OTT (over-the-top) content without logging in; 'Magnit All-in-One,' a 136-inch ultra-large micro LED display with an integrated controller and speaker suitable for workspaces; and 'Electronic Whiteboard,' equipped with AI summary and AI chatbot functions for convenient use in educational settings?as well as software solutions for operating and managing these displays.

President Jung stated, "By leveraging the logistics operation know-how we have accumulated through building and operating lighthouse factories, we will establish ourselves as a trusted business partner in the rapidly growing smart logistics sector."

Chairman Lim said, "Through this collaboration, we will combine our smart logistics platform technology with the smart factory technology of LG Electronics' Production Technology Institute to enhance our competitiveness in the global market."

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