LG Electronics: Core business weakening, robots are the future
LG Electronics announces record sales, but its core display business is weakening. In the future, the company aims to become more independent from it.
(Image: LG Electronics)
LG Electronics plans to expand its AI and robotics business, seeing it as a key growth driver amidst its weakening core business. The company also intends to strengthen its supply chains in the USA.
As reported by The Korea Times, the conglomerate plans to transfer its expertise from home appliances, industrial, and service robotics to humanoid AI robots. LG has built up know-how in areas such as motors, actuators, and autonomous navigation recently and intends to consolidate these competencies, explained CFO Kim Chang-tae during a conference call on the fourth quarter 2025 results.
At CES, LG had already showcased the CLOiD home robot, demonstrating it loading laundry into a washing machine. The robot moves on wheels, has two arms with seven axes, and hands with five fingers. Its head contains a computing unit, sensors, and a display. The robot is part of LG's concept for a largely automated home where machines perform everyday tasks autonomously. The motto: "Zero labor Home".
Furthermore, LG recently announced a collaboration with the US robotics company Boston Dynamics. In the future, the research teams of Boston Dynamics and LG Innotek will work closely together to develop new vision-sensing systems that will enable the humanoid Atlas robot to better perceive its surroundings and recognize objects.
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One reason for the new focus: the core business is weakening. Although LG Electronics achieved record sales of 89.2 trillion won (approximately 55 billion euros) in 2025, as reported by The Korea Herald, among others. However, operating profit decreased by 27.5 percent to 2.48 trillion won. In the fourth quarter, the conglomerate slipped into the red with an operating loss of 109 billion won. The core business of TV sets and displays performed particularly weakly, while home appliances, the B2B divisions for automotive components, and heating, ventilation, and air conditioning technology achieved record results.
For the current year, LG expects continued burdens from global economic uncertainties, tariffs, and rising component prices. To counteract this, the conglomerate plans to expand its supply chains in the USA and increase efficiency at its three production sites there, among other measures.
(rbr)
