High-end modules drive LG Innotek's record Q1 sales

LG Innotek said Wednesday it has logged the highest-ever first-quarter revenue, defying typical seasonal downturns thanks to robust sales of high-end camera modules, a rebound in demand for substrates used in semiconductors and displays, and favorable exchange rate conditions. The electronic component manufacturer posted 4.98 trillion won ($3.5 billion) in revenue for the January-March period, marking a 15 percent on-year increase. The figure exceeded the 4.45 trillion won consensus by local analysts provided by market intelligence firm FnGuide. Operating profit, however, fell 28.9 percent from a year earlier to 125.1 billion won. It still surpassed market expectations, which had projected profit at around 104.5 billion won. The firm attributed the drop in profitability to sluggish growth in downstream industries such as electric vehicles and intensified competition in the optical solutions segment. “We are accelerating the growth of our advanced component businesses, including FC-BGA and automotive application processor modules for AI and semiconductors, as well as key mobility solutions such as sensors, communications and lighting,” said Chief Financial Officer Park Ji-hwan. Park added that the company is further enhancing its business portfolio through strengthened partnerships with leading robotics firms. “We will continue to bolster cost competitiveness through global production realignment and AI transformation, while actively proposing next-generation technologies to clients and reinforcing our edge in key technologies to improve profitability,” he said.

The Asia Group launches Seoul office, citing Korea’s global strategic role

The Asia Group, a US-based strategic and investment advisory firm, launched a new office in Seoul this week to serve the growing number of high-potential clients with investment power in Korea. “Establishing a strong on-the-ground presence in Seoul underscores TAG’s long-term strategic commitment to the region,” said TAG Chairman and Co-Founder Kurt Campbell, who visited Seoul from Tuesday to Wednesday. “South Korea’s role as a global innovation leader and strategic player in Northeast Asia makes it indispensable to our clients’ priorities. At a time of heightened geopolitical flux and shifting global supply chains, TAG’s investment in South Korea enhances our ability to deliver timely, meaningful counsel and high-impact business solutions to companies navigating today’s increasingly complex operating environment.” The advisory firm appointed Lim Byung-dae, a global corporate management specialist, as managing director to head the main office. Previously serving as executive vice president of LG Group’s Corporate and Government Affairs office in Washington, Lim led US federal government affairs for seven LG operating companies and advised senior leadership on corporate strategy, government engagement and regulatory compliance, TAG said. Lim also brings extensive legal experience, having served as general counsel in Seoul for LG Innotek, LG Display and Pfizer Pharmaceutical Korea, and having practiced law at leading institutions such as Kim & Chang and IBM Korea. Lim joins the Seoul office alongside TAG Senior Vice President and Korea Country Director Kim Yoo-chul, and Associate Vice President John Lee. Kim is a seasoned former journalist and brings deep expertise at the intersection of business, media, and geopolitics, the firm added. The advisory group said it aims to provide premier expertise in delivering tailored strategies to help clients navigate Korea’s dynamic market, as well as to support Korean firms operating in the increasingly complex US and global business environments. TAG’s Seoul office joins its network of regional hubs, which includes locations in Hong Kong, Tokyo, Taipei, Shanghai, Hanoi, Bangkok, New Delhi, Mumbai, Singapore, Canberra, Melbourne and Sydney. Since its founding in Washington in 2013, TAG has grown to include over 150 professionals worldwide.

LG Establishes LG Awards Hall of Fame

"The most important principle we must uphold is putting the customer first." - LG Corp. Chairman and CEO Kwang Mo Koo SEOUL, South Korea, April 10, 2025 /PRNewswire/ -- LG hosted the 2025 LG Awards at LG Academy (LG's Corporate University) in Icheon, South Korea, celebrating standout examples of customer value innovation. This year's event marked a milestone with the unveiling of the first-ever LG Awards Hall of Fame, created to honor past winners. Now in its seventh year, the LG Awards was launched in 2019 to recognize products and services that have meaningfully improved customers' lives. Since its inception, the awards have honored 492 teams and more than 4,000 individual contributors. *Award recipients by year: 2019(321), 2020(480), 2021(448), 2022(593), 2023(769), 2024(724), 2025(680). More than 500 people attended the ceremony, including LG Corp. Chairman and CEO Kwang Mo Koo, executives from across LG, customer representatives, and award recipients. An additional 1,000 employees joined the event via livestream, adding to the celebratory atmosphere during each award announcement. "We created the Hall of Fame here at LG Academy to honor the results of your innovation," said Chairman Koo. "The names and projects that will be added in the years to come will serve as a source of inspiration and guidance for all LG employees." During his remarks, he also emphasized LG's long-term vision: "Our journey to deliver differentiated value for the future will always continue, and the most important principle we must uphold is putting the customer first. Let's continue to build on LG's DNA of challenge and change, push toward new industry-firsts, and build a future where LG is loved even more deeply by customers." An LG spokesperson also commented on the broader business context: "At a time of growing global uncertainty, including rising trade barriers, there are many strategic paths to consider. But this moment reaffirms that our top priority must remain relentless innovation for the customer." The inaugural LG Awards Hall of Fame installation displays plaques engraved with the names and award-winning projects of past recipients of the "Customer Impression Grand Award." The Hall of Fame is located in the lobby of Yeonam Hall at LG Academy in Icheon, the company's main training center. It is where employees, from entry-level to executive, receive education in core values, management philosophy, and job-related skills. The location is designed to help all LG members naturally engage with examples of customer-driven innovation. The 31 members of this year's three Grand Prize-winning teams personally mounted their plaques, commemorating their contributions to customer value. LG is also creating dedicated display spaces within each affiliate's office to recognize their own LG Awards winners. Major meeting rooms will feature the names of grand prize recipients to inspire pride and motivation across teams. In addition to receiving plaques, winners are awarded cash prizes and opportunities to participate in overseas workshops. The 2025 LG Awards were judged through an open evaluation process involving both customers and employees. For the first time, customer evaluations went beyond individuals to include group feedback, incorporating perspectives from homemakers, professionals, international consumers, and the MZ generation. LG employee participation in the judging process also saw a major jump, rising from 10,000 last year to more than 14,000 this year, underscoring the growing enthusiasm for the awards. This year's awards honored 87 teams and 680 individuals. Recipients included three Customer Impression Grand Award winners in the categories of Individual and group; 39 teams received the Customer Satisfaction Award, and 45 were recognized with the Customer Empathy Award. Evaluation criteria included whether the innovation exceeded customer expectations, whether it delivered a meaningful improvement in customers' lives, and whether the project had the potential to be scaled into product processes or best practices. In the Individual category, Seong Kuk Moon of LG Electronics received the grand prize for developing the Clean View feature, which makes air conditioner hygiene easier for users. With the press of a button, users can open the unit to inspect and clean the interior, addressing long-standing concerns over cleanliness and maintenance. The innovation also includes a "Viewcase" at the base of the product, allowing users to display books or picture frames, reflecting thoughtful design for modern living spaces. The Clean View feature has been already been applied to current models, contributing to strong sales and helping LG maintain the top market share in the air conditioner segment. In the group category, the grand prize went to LG Energy Solution's Infrastructure FA Technology team. They developed a logistics solution using autonomous mobile robots (AMRs) to manage frequent equipment changes and fluctuating material flow at battery production facilities. In group category, the grand prize was also awarded to the Optical Solutions Division at LG Innotek for its contributions to advancing camera module technology. Other notable winners include LG AI Research, which received the Customer Satisfaction Award for its generative AI model EXAONE 3.5, and LG Uplus, which introduced, ixi-O, a real-time voice phishing detection technology that can answer calls on behalf of users to block scams. LG Chem also received the Customer Empathy Award for developing the world's first automotive sunroof film capable of both achieving a black tint and supporting segmented control. HSAD was also honored for its post-proposal initiative, which marked a first in the advertising industry where the company voluntarily continued ideation even after a project had formally ended.

LG Innotek, Intel team up for AI-powered smart factories

LG Innotek said Tuesday that it will collaborate with US chipmaker Intel on applying artificial intelligence to vision inspection systems across its production lines. Vision inspection is a process used in manufacturing to detect external defects or anomalies in products. Traditionally performed by human inspectors, the method has been increasingly automated using cameras, with AI further enhancing accuracy and consistency. The adoption of AI can significantly reduce product defect rates, according to the company. Under the new partnership, LG Innotek will deploy Intel’s AI vision inspection solution based on integrated graphics processing units across its manufacturing facilities. An i-GPU is a GPU embedded within a CPU, enabling AI capabilities without the need for high-cost external GPUs or additional PC installations. LG Innotek first introduced Intel’s AI vision solution to its mobile camera module production line last year. This year, the company plans to expand implementation to other facilities, including its Gumi Plant 4, which serves as a key site for producing flip-chip ball grid array substrates -- a next-generation semiconductor component. Adopting AI-driven smart factory technologies is part of LG Innotek’s broader strategy to enhance cost competitiveness and manufacturing innovation. The company expects Intel’s AI solution to improve the precision of its inspection processes, potentially boosting defect detection accuracy to 100 percent. It also anticipates a 1.5-fold reduction in the time required for AI training processes. Looking ahead, both companies plan to deepen cooperation in intelligent production systems. “Our collaboration with Intel is accelerating the pace of smart factory deployment. We will continue to strengthen the partnership to deliver differentiated customer value through innovation in manufacturing,” said Lee Sang-seok, vice president of the production innovation center at LG Innotek.

[Photo News] LG Innotek-KAIST partnership

Korea Advanced Institute of Science and Technology President Lee Kwang-hyung and LG Innotek CEO Moon Hyuk-soo (right) pose for a photo at the university in Daejeon on Wednesday. LG Innotek and KAIST signed a memorandum of understanding to conduct joint research and foster tech talent, with a focus on semiconductors, mobility and robotics. (LG Innotek)

LG Innotek to invest W600b in Gumi plant

LG Innotek said Tuesday that it has signed a 600 billion won ($408 million) investment agreement with North Gyeongsang Province and Gumi City. The electronics parts maker plans to utilize the investment to expand the mass production lines for flip chip ball grid array and introduce new facilities for the production of high-value camera modules. The investment period will span from next month to December next year. Prior to the latest deal, LG Innotek signed an investment agreement with Gumi City in 2022 and made a large-scale investment of 1.4 trillion won in its Gumi operations. The last investment enabled LG Innotek to acquire Gumi Plant 4, covering a total floor area of 230,000 square meters. The facility has since been transformed into a key production base for its new FC-BGA business, known as the “Dream Factory.” Additionally, the company expanded its production lines for mobile camera modules. Through the additional investment, LG Innotek aims to accelerate the enhancement of its competitiveness in the substrate and optical solution businesses. It has incorporated cutting-edge IT technologies such as artificial intelligence, robotics and digital twins into the Dream Factory, which officially began mass production of PC-use FC-BGA for global Big Tech clients in December. Starting this year, LG Innotek will focus on securing additional FC-BGA customers while advancing next-generation substrate technologies, including glass key integration, to grow its FC-BGA business into a multi-trillion-won industry. To solidify its position as the global leader in camera modules and enhance cost competitiveness in its optical solutions business, LG Innotek plans to operate a dual production system: legacy model products will be manufactured at its Vietnam plant, while high-value camera modules for new models will be produced at the Gumi plant. "Gumi is a strategically vital hub for LG Innotek’s key businesses," said CEO Moon Hyuk-soo. "We will continue investing to create maximum customer value while fostering mutual growth with local communities and partner companies."

LG Innotek gears up for imminent robot parts production

LG Innotek CEO Moon Hyuk-soo said Monday that the company is preparing for mass production of components for humanoid robots set to launch next year. He also hinted at an imminent partnership announcement with a major industry player. Speaking to a group of local reporters following LG Innotek’s 49th annual general meeting in Seoul, Moon said, “We are in discussions with a significant number of companies regarding camera solutions and we are also developing essential components such as hands and joint motors.” Although initial production volumes this year may not be substantial, Moon projected a tenfold increase from 2027 with significant increases each year from then on. His remarks echoed his announcement at CES 2025 in Las Vegas in January, where he mentioned that LG Innotek was collaborating with a “well-known” humanoid robotics firm and promised to disclose further details upon achieving meaningful milestones. Industry sources suggest that the electronics parts maker is working with more than half of the 14 humanoid robot firms featured in Nvidia CEO Jensen Huang’s CES keynote. These companies include Boston Dynamics, Agility Robotics, Figure, Neura Robotics and Sanctuary AI. Despite potential tariff risks under US President Donald Trump’s administration and a temporary slowdown in the electric vehicle market, LG Innotek remains committed to expanding its Mexico operations. The company’s existing Mexican facility manufactures motors, sensors and automotive camera modules. The new plant, currently under construction, will bolster production capacity for camera modules and lighting solutions, crucial for the automotive sector. Moon clarified that tariffs on LG Innotek’s Mexico-produced goods are absorbed by customers rather than the company itself. However, he acknowledged concerns about potential cost transfers, saying, “We are actively discussing ways to optimize our global production sites to minimize any adverse impact.” The expanded Mexico plant is set for completion in July, with mass production commencing in October. Meanwhile, at the annual general meeting, shareholders approved all four agenda items, including financial statement approval, director and audit committee member appointments, and executive compensation limits.

LG Innotek drives growth in automotive semiconductor solutions

Korean electronic components manufacturer LG Innotek announced on Wednesday the launch of its automotive application processor module, designed to serve as the brain of in-car software. The AP module controls various electrical functions in smart vehicles, from advanced driver assistance systems to infotainment and digital cockpits, which have become essential in modern vehicle development. Aiming to begin mass production in the second half of this year, LG Innotek is actively promoting its AP module to global semiconductor companies. These chipmakers will collaborate with LG Innotek to integrate over 400 types of their chips into the AP module. LG Innotek highlighted that the new module features a compact design of just 6.5 square centimeters, optimizing dashboard space for in-car devices. The small size also enhances performance and efficiency by minimizing distances between internal components, ensuring faster and more precise operation. The launch marks a continuation of LG Innotek’s expansion into the automotive semiconductor solutions sector, building on its expertise in automotive sensors, such as those used in cameras and radar systems. With advancements in connected car technology and autonomous driving, demand for AP modules is soaring. The number of AP modules installed in vehicles worldwide is projected to grow 22 percent annually, reaching 113 million units by 2030. While continuing to enhance its AP modules, LG Innotek aims to boost its annual revenue from chip packaging to over 3 trillion won ($2.08 billion) by 2030, further solidifying its market position. “We could accelerate the growth of our semiconductor-related automotive parts business by developing a new AP module,” said Moon Hyuk-soo, CEO of LG Innotech. "We will continue to create products that offer differentiated customer value and position ourselves as an innovative partner for our global customers."

LG Innotek to showcase cutting-edge vehicle lighting technology in Germany

LG Innotek on Wednesday said it plans to showcase its latest innovations in vehicle lighting technology at the upcoming DVN Lighting Workshop in Munich, Germany. LG's electronic parts maker is participating in the workshop hosted by Driving Vision News, a renowned gathering of global carmakers and electronic component firms, to discuss industry issues and technological trends. This year’s conference, which takes place Feb. 19-20, will focus on sustainability, development speed acceleration and software. LG Innotek will participate in the innovative technology session on Feb. 19, where it will share advanced technology applied to its flagship product, Nexlide, a flexible lighting module for vehicles. The company holds more than 700 patents related to surface light source technology, enabling the development of slim lighting modules that emit bright, uniform light. At the workshop, LG Innotek plans to set up an exhibition booth to showcase its Nexlide lineup, which can be applied to both the front and rear of vehicles. It will also reveal new products such as the Nexlide Edge, a slimmer module that replaces LED packages with LED chips, and the Nexlide Vision, which combines the existing Pixel Lighting –- capable of producing various text and animation effects –- with Smart Film technology to enhance design flexibility. Following the event, LG Innotek plans to host a roadshow for major European carmakers as part of its goal to expand its market share in Europe. “LG Innotek will introduce differentiated vehicle lighting modules that offer exceptional value to customers,” said Yoo Byaeng-kuk, head of automotive component business unit. “Beyond North America, we aim to become a trusted technology partner in the European and Japanese automotive lighting markets.”

Big firms' employment inches up in 2024 led by Samsung Electronics

South Korea's major companies slightly increased their workforce last year, with tech giant Samsung Electronics Co. seeing the largest expansion despite challenges in its flagship semiconductor business, a corporate tracker said Wednesday. The total number of subscribers to the state-run National Pension Service at 468 out of the country's top 500 firms by sales reached 1.59 million as of end-December, marking a 0.3 percent increase from 1.58 million tallied a year earlier, according to CEO Score. In South Korea, most regular workers are enrolled in the NPS, a pension plan where both employers and employees contribute to retirement funds under the state-run system. Samsung Electronics had the highest number of wage workers covered by the national pension scheme at 125,000, followed by Hyundai Motor Co. with 69,000, LG Electronics Inc. 36,000, Kia Corp 33,000 and SK hynix Inc. 31,000. Samsung Electronics also led the job growth, adding 4,716 new positions last year. CJ Olive Young Corp., a beauty and health care chain, expanded employment by 2,224, while Korea Railroad Corp. added 1,359 jobs. The increase in hiring came despite Samsung facing strong headwinds in the competitive semiconductor market, largely due to sluggish performance in artificial intelligence chip sales. In contrast, LG Innotek Co., an electronics component manufacturing unit of LG Group, logged the biggest job decrease of 2,391, trailed by LG Display with 2,346 and E-Mart with 1,293. (Yonhap)