6 Years of Effort by Gu Ja-yeol's Team 'Digital Innovation'... Transforming the Manufacturing Industry

LS Electric Cheongju Power Equipment Smart Factory
Selected as 'Lighthouse Factory' by World Economic Forum (WEF)
Subsidiaries Accelerate Integration of 4th Industrial Revolution Technologies into Traditional Manufacturing

Koo Ja-yeol, Chairman of LS Group, is expressing his thoughts on LS Electric, a group affiliate, being selected as a 'Global Lighthouse Factory' in 2021 during the non-face-to-face online annual meeting held by the World Economic Forum (WEF) on the 29th of last month.
[Photo by LS Group]

[Asia Economy Reporter Kim Heung-soon] Under the leadership of Chairman Koo Ja-yeol, LS Group is achieving results in 'digital transformation' by integrating advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), and big data into the traditional manufacturing sector.

According to industry sources on the 2nd, LS Electric, LS Group's specialist company in power, automation, and smart energy, recently received the 'Lighthouse Factory' status from the World Economic Forum (WEF) for its smart power equipment production plant in Cheongju, Chungbuk. This recognition was given for creating a performance model in manufacturing by utilizing 4th Industrial Revolution technologies such as AI, IoT, and cloud computing at the facility.

The Lighthouse Factory designation is awarded to manufacturing sites that, like a lighthouse guiding ships through dark seas, demonstrate outstanding achievements and set the direction for the industry. Among domestic companies, LS Electric is the second to be designated as a Lighthouse Factory following POSCO in 2019. Established in 2018, only 90 companies worldwide have earned this qualification.

The LS Electric Cheongju plant is equipped with core smart factory technologies including an industrial IoT (IIoT)-based automated equipment model change system capable of mass production of various products, in-house logistics robots with autonomous driving, AI-based real-time automatic welding systems, and machine learning-based noise and vibration inspection systems. A fully automated system is established across the entire line from parts supply to assembly, testing, and packaging, enabling integrated real-time control of the factory, quality, and energy monitoring.

Since 2011, LS Electric has invested over 20 billion KRW to build its smart factory, resulting in significant productivity improvements. According to LS Electric, the daily production volume of 38 low-voltage power equipment items improved from about 7,500 units to 20,000 units after the smart factory implementation. Energy consumption was reduced by more than 60%, and the defect rate sharply dropped to about 7 units per million.

LS Electric also operates an open platform called Tech Square, where demanders, suppliers, and industry-academic experts can freely participate. Through this platform, customized services such as lifecycle close mentoring, optimal supplier matching, project management, and maintenance services are provided.

LS Electric Cheongju Power Equipment Smart Factory
[Photo by LS Group]

This initiative is part of LS Group's 'digital transformation' that began in earnest in 2015. It represents the group's research and development and future preparation strategy. The goal is to transform into a digital and eco-friendly company by integrating AI, big data, and smart energy technologies into the traditional manufacturing sector. Chairman Koo also praised the selection of the LS Electric Cheongju plant as a Lighthouse Factory as a significant achievement and expressed confidence, stating, "LS's digital innovation journey to overcome the waves of the 4th Industrial Revolution will continue."

Other affiliates are also accelerating their digital transformation. For example, LS Cable & System introduced 'One Pick' in June, an online B2B cable sales system that allows cable distributors to check real-time inventory, request quotes, make purchases, and confirm shipments online. LS Nikko Copper plans to establish a smart factory system (ODS) at the Onsan smelter, connecting the entire production process via communication for automated operations.

An LS Group official stated, "We will strengthen our eco-friendly business capabilities to create a sustainable society through the digital transformation of our core businesses and the technological expertise we have accumulated in the green energy sector."