LG Electronics' research and development (R&D) expense last year hit an all-time high.
According to a business report LG Electronics disclosed on the 13th, LG Electronics' R&D spending last year totaled 5.2878 trillion won, up about 11% (524.6 billion won) from a year earlier. The ratio to sales also rose from 5.4% to 5.9%.
The increase in research and development expense appears to have been made to secure competitiveness in future business areas such as artificial intelligence (AI) home, vehicle components, and heating, ventilation and air conditioning (HVAC).
In the business report, LG Electronics said it plans to invest a total of 4.0453 trillion won this year in quality improvement, replacement of aging facilities, and new model development. By business unit, the HS Business Division is expected to spend 930.3 billion won, the most among all divisions, followed by the VS Business Division, which handles vehicle components, at 861.9 billion won. The MS Business Division and ES Business Division are slated to execute 290.2 billion won and 394.6 billion won, respectively.
In other business areas, a total of 1.5683 trillion won is expected to be invested in research and development and infrastructure.