We are currently pursuing orders for robot actuators with several big tech companies. In Oct., we also have meetings scheduled on production readiness and other matters.
On the 5th (local time), Baek Seung-tae, head of the Home Appliance & Air Solution (HS) Business Division (executive vice president) at LG Electronics, met with reporters at the Berlin International Consumer Electronics Fair (IFA) 2026, Europe's largest home appliance and information technology (IT) exhibition, in Berlin, Germany, and said this. Baek oversees LG Electronics' core home appliance business. Actuators are key components that combine a motor, reducer, and driver to create and precisely control a robot's movements, corresponding to human joints and muscles. The industry estimates actuators account for as much as 60%–70% of the cost of a Humanoid Robot.
In addition to business-to-consumer (B2C) sales of finished goods such as refrigerators and washing machines, LG Electronics is cultivating business-to-business (B2B) as a new growth pillar for home appliances. The strategy is to expand its B2B revenue base by adding robot actuators as a new pillar to its existing parts businesses—such as motors and compressors—alongside builder/built-in packages that supply appliances to construction corporations and others, and commercial laundry appliances. Baek said, B2B currently accounts for just over 10% of total sales at the HS Business Division, and added, We will accelerate growth in the appliance business by expanding our B2B operations from residential to commercial and industrial spaces, leveraging technology and customer experience data accumulated in home appliances.
On the challenge from Chinese appliance makers, Baek assessed, Our capacity to respond sufficiently is improving. The plan is to respond by combining technological strength in directly producing key components such as motors and compressors with cost competitiveness from flexibly leveraging global supply chains and production bases.
Baek said that based on such production and cost responsiveness, the company is maintaining business growth even amid ongoing external uncertainties. He said, I cannot present specific numbers, but profitability is not worse than last year, and added, We are treating raw materials and supplies prices and geopolitical uncertainty as constants and have established response systems.
◇ Sales on par with compressors within 1–2 years… robot "joints and muscles" via B2B
Earlier this year, LG Electronics unveiled its robot actuator brand LG AXIUM (AXIUM). It plans to expand the current nine-product lineup to match customer-required size, output, precision, and operating environments, and to establish mass production within the year.
Baek said, The reducer, motor, and driver are the core components of an actuator, and LG Electronics has been making motors for about 60 years, adding, High efficiency, light weight, and cost competitiveness are our strengths. He went on, We can make motors more than 30% lighter than competitors.
LG Electronics will both develop in-house and source externally for reducers, where securing technology is relatively more necessary. Because the required size, output, and structure differ for each Humanoid Robot maker and standard specifications for actuators have yet to be established, the company also plans to secure the capability to provide customized products. It is also preparing to build an automated actuator production line at its Changwon establishment in South Gyeongsang. Baek said, After Oct., I want to quickly share good news that we have won orders.
He also presented targets for business scale. Baek said, Actuators account for about 60% of robot material costs, and dozens of actuators go into a single humanoid, adding, Within 1–2 years, sales could reach a level comparable to our current external compressor business.
Existing B2B businesses are also growing quickly. LG Electronics' North American builder business sales have grown an average of about 45% annually over the past three years, and commercial laundry appliances about 41%. Last year, it signed a contract to supply commercial washing machines to CSC ServiceWorks, a North American laundry solutions company, and plans to more than double this year's supply volume from the previous year.
LG Electronics will expand the business experience it has built in North America to Europe. This year, it will more than double its Europe-based builder sales staff and, by year-end, expand built-in appliance displays to about 3,000 stores across Europe, including home appliance, interior, and furniture retailers.
◇ It will be hard for low-priced offensives from China to continue… goal to be No. 1 in Europe's appliance market remains
While acknowledging that Chinese companies' product competitiveness has risen quickly, Baek said it will be difficult for a price-led offensive to continue for long. He said, In the past, major Chinese appliance makers achieved greater cost reductions than LG Electronics, but recently we are seeing their costs rise, adding, I think it will be difficult for Chinese companies to maintain a strategy of continuing low prices just to increase market share.
LG Electronics has also continuously refined its supply chain and cost structure. Baek said, Including leveraging the Chinese ecosystem, we tried many changes to reduce material costs, adding, With 12 production sites across 10 countries worldwide, we can adjust and respond flexibly, so our capacity has improved compared with before.
As the foundation of product competitiveness, he cited key components such as motors and compressors, and control and software technology. Baek said, In the past, price and capacity were the competitive points, but now the basis of appliance competitiveness is how much customer experience a product can embody, explaining that quality, ease of use, and service all determine product competitiveness.
In Europe, the company is highlighting energy efficiency as a core strength. LG Electronics has introduced a washing machine that reduces energy use by 70% compared with the top European energy efficiency grade A standard, along with a refrigerator (A-35%) and a dishwasher (A-30%). Beyond the products' own energy efficiency, it is also expanding solutions that manage a home's total energy use by combining a smart home platform with a home energy management system (HEMS).
Baek said the goal presented last year—to be No. 1 in Europe's appliance market by 2030—remains in place. He said, In Europe, traditional powerhouses like Miele and Bosch, which have built long-standing brand trust, hold significant market share, but added, LG Electronics refrigerators and washing machines are growing by double digits from last year. If we keep at it, I think we can reach the market position we are aiming for. The following is a Q&A between Baek and reporters.
- Looking at Chinese companies' robot vacuums, hardware is changing fast, such as climbing over obstacles. Some say LG Electronics is behind technologically.
The most important thing in a robot vacuum is the driving technology that allows it to move around. It is true that we were lacking in that area. However, the product released this year is being validated in the market and is being assessed as having no issues with navigation. If we continue to secure the driving technologies used in robot platforms, I believe we can sufficiently enhance competitiveness.
Looking at changes in Chinese companies' form factors over the past three years, many functions disappeared without real-world adoption. Ultimately, the essence of a robot vacuum is driving and cleaning. LG Electronics is differentiating on cleaning quality by applying steam functions to both the main unit and the station. While supplementing the previously lacking driving technology, we will also secure competitiveness in the product's essence—cleaning.
- LG Group is ramping up humanoids. What role does the HS Business Division play?
Robots can evolve in many forms depending on the environment of use, such as a wheeled type or walking on two legs like a human. Even in industrial sites, depending on the nature of the task, legs or a head are not always necessary. At the group level, we are combining each affiliate's capabilities in sensors, materials, data, and drive technologies. The HS Business Division is focusing on the actuator business, the core component of robots.
- Will humanoids be deployed in LG Electronics' own factories as well?
Before entering homes, they will first gain a lot of experience in industrial sites. At the Tennessee factory in the United States, humanoids are learning some processes and will be deployed on-site soon. We are also preparing to apply humanoids at the Changwon smart factory.
Safety is most important in homes. Safety can be managed in industrial sites, but there are many unpredictable situations at home. Many corporations are working to solve this, and while time will be needed, it may come sooner than expected.
- Why did you present the home robot LG CLOiD as the conductor of the AI orchestra at this year's IFA?
Until last year, we put AI functions into each appliance like washing machines and refrigerators and emphasized connections between appliances. What we want to show this year is not simple connection. It is a Zero Labor Home, where each appliance understands the customer's space and lifestyle, autonomously judges and acts, and helps daily life. Not right away, but at the final stage, robots will reach the pinnacle. We put CLOiD forward as the conductor because in a Zero Labor Home, the most important form factor will be the robot.
- What does a Zero Labor Home look like specifically?
It is a direction. Even without the customer being conscious of it, appliances perceive the customer and situation, link devices and services, and provide invisible care. Today, a single appliance cannot perform the entire process of putting laundry into the washer, taking it out, and moving it. We are in the process of having physical AI handle such real actions. If we implement these functions one by one across the entire home, I think we will get closer to a Zero Labor Home.
- Can the hair dryer first unveiled at IFA be seen as a new area of the home appliance business?
One of the core technologies of a hair dryer is also the motor. It is a field where LG Electronics' motor technology can be utilized. We applied functions that manage moisture in the scalp and hair, and we secured competitiveness in airflow compared with key products in the industry. We will introduce it to the market and get feedback, and if we achieve meaningful results, we plan to expand the lineup into hair care. We will not stay only with established appliances like refrigerators and washing machines; we will continue to seek new opportunities in customers' daily lives.
- Samsung Electronics is not operating a large public booth at Messe Berlin this year. Will LG Electronics continue to participate in IFA?
Yes. Like other exhibitions, IFA showcases new products and technologies, but a key feature is that a lot of transaction partner meetings take place. In line with its strategy to grow business in Europe, LG Electronics will continue to participate in IFA.
- As AI homes extend connections to cameras and door locks, security becomes more important.
AI homes will expand beyond appliances to include Internet of Things (IoT) cameras and door locks. Security is a value that must be protected for customers. Through LG Shield (LG Shield), LG Electronics is strengthening AI home security.
- Is additional production investment underway in the Global South?
The refrigerator factory in Brazil began production last month and started local supply. In India, following the existing two factories, the Sri City plant is scheduled to begin production at the end of the year. These markets have premium demand, but many customers are also buying their first refrigerator or washing machine. In India, we introduced products targeting these customers and achieved the intended sales and revenue. We plan to extend this experience to other Global South markets.