We are standing at an inflection point where the foundation of the artificial intelligence (AI) business is changing and the global supply chain is being reshaped. Through a high-performance portfolio transition, we will prove a solid growth base that will not be shaken by any external environment. In particular, we will make this year the first year of full-scale robot business at LG Electronics.
Lyu Jae-cheol, CEO of LG Electronics, said this at the 2026 annual general meeting of shareholders held at LG Twin Towers in Yeongdeungpo-gu, Seoul, on the 23rd. At the meeting, Lyu presented the 2026 companywide business direction to preempt the market in the four key areas LG Electronics is focusing on—robots, AI data centers, smart factories, and the AI home.
LG Electronics' strategy is to concentrate companywide capabilities on the four areas to respond to a market environment where uncertainty is deepening. LG Electronics urgently needs to improve profitability this year. LG Electronics underperformed last year due to weak demand in global markets and the impact of higher logistics costs and tariff, among other factors. LG Electronics posted operating profit of 247.84 billion won last year, down 27.5% from the previous year. This year, the business environment is also expected to be challenging due to rising raw material prices caused by the war between the United States and Iran.
Declaring this the first year of full-scale robot business, Lyu said the company will target the actuator market, the core component of robots. LG Electronics will launch a B2B parts business to directly design and manufacture actuators—the key component that accounts for more than 40% of robot cost—and supply them to global robot manufacturers. LG Electronics plans to establish a mass-production system within the year.
Lyu said, We will directly design and produce actuators, the core component that accounts for more than 40% of robot cost, and supply them to global robot manufacturers, adding, We will attack the market with the infrastructure proven by mass-producing about 45 million appliance motors annually.
LG Electronics said it will also speed up its home robot business by leveraging the vast amount of living-environment data it has accumulated based on AI appliances. At CES 2026, the world's largest IT and home appliance exhibition, LG Electronics unveiled its home robot, Cl.oi.D.
Lyu said, Next year, Cl.oi.D will come out of the lab and be deployed directly to proof-of-concept (POC) sites, adding, As physical artificial intelligence (AI) and robot-related technologies are advancing at a pace beyond expectations, we intend to make this year the first year of full-scale robot business and execute detailed strategies with speed.
For the AI data center business, the company plans to strengthen its lineup, including next-generation liquid cooling in addition to air-cooling solutions, and enhance cooperation with global big tech corporations. The smart factory business will be nurtured as a high-revenue B2B solution that helps maximize production process efficiency across diverse industries. The AI home will build an open ecosystem based on appliance competitiveness and vast customer usage data, and will be promoted as a space solutions business that combines services tailored to spaces in the home.
Meanwhile, at this shareholders meeting, all agenda items were passed as originally proposed, including approval of the financial statements, approval of amendments to the articles of incorporation, approval of the cancellation of treasury shares, appointment of directors and Audit Committee Commissioners, and approval of the limit on directors' compensation. For inside directors, President Lyu Jae-cheol, who took office as CEO in the executive reshuffle at the end of last year, was newly appointed, and Seo Seung-woo, a professor in the Department of Electrical and Computer Engineering at Seoul National University, was reappointed as an Audit Committee Commissioner.
At the board meeting held after the shareholders meeting, Kang Su-jin, an outside director, was appointed as the first board chair from outside directors. Kang, the chair, is a professor at Korea University School of Law and an expert in fair trade and law. Kang joined the LG Electronics board in 2021 and serves on the Internal Transactions Committee, Audit Committee, and ESG (environmental, social and governance) Committee. Lyu was appointed the sole CEO.