LG Electronics, R&D Investment Reaches All-Time High……Strengthening Competitiveness in Artificial Intelligence and Automotive Business

TechubNews · 2026-03-13T13:32:20+00:00

LG Electronics' R&D expenses reached a record high of 5.2878 trillion Korean won last year, up 11%. The company primarily invested in fields such as AI-powered smart homes and automotive electrical components. Despite a 27.5% decline in operating profit due to rising logistics and tariff costs, the company maintained inventory levels and expects future investments to improve profitability.

TechubNews

2026-03-13 13:32:20

Abstract generation in progress

LG Electronics’ R&D expenses last year reached a record high of 5.2878 trillion Korean won, demonstrating its commitment to strengthening the competitiveness of its main business units. This figure increased by 11% compared to the previous year, and its proportion of sales rose from 5.4% to 5.9%.

The growth in R&D spending was driven by expanded investments in next-generation industries such as AI home appliances, automotive electronics, and HVAC. Particularly, the HS Business Division responsible for home appliances doubled its R&D achievements from the previous year, reaching over 45 items, with gains also seen in the TV and air conditioning sectors.

According to the 2026 investment plan, LG Electronics expects to invest about 4 trillion Korean won in areas like quality improvement and new model development, with the largest allocation going to the home appliance division. Additionally, the automotive electronics sector will receive 861.9 billion won, while the TV and air conditioning businesses plan to invest 290.2 billion won and 394.6 billion won, respectively.

Currently, LG Electronics holds approximately 99,000 patents domestically and internationally. These patents will be used for core businesses such as smartphones and digital TVs or as future key features. This technological protection network enables the company to effectively explore new business areas.

On the other hand, due to soaring logistics costs and increased tariffs, last year’s operating profit decreased by 27.5% year-over-year. However, LG Electronics has maintained its inventory assets and kept inventory turnover rates stable to cope with external uncertainties. In this context, the company’s investments are expected to lay the foundation for future improvements in profitability.

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