Samsung and LG Accelerate Robot Investment and Research... Aiming to Capture the Global Market

LG Electronics Focuses on Commercial Robots
Leads Standardization of AI-Based Robot Platforms
Samsung Electronics Also Interested in Generative AI Robots
Robot Experts Appointed as Outside Directors

Samsung Electronics and LG Electronics are accelerating their investments and research and development (R&D) efforts to secure a leading position in the steadily growing global robot market, leveraging artificial intelligence (AI) and ICT.

LG Electronics announced on the 12th that it has signed a new share subscription agreement to acquire shares in Bear Robotics, headquartered in Redwood City, Silicon Valley, USA, by investing $60 million (approximately 78.7 billion KRW).

LG CLOi CarryBot. Photo by LG Electronics

This equity investment is not a financial investment seeking short-term profits but a strategic investment conducted from the perspective of enhancing the business portfolio. Through this investment, LG Electronics aims to accelerate the advancement of its capabilities in the commercial robot business, including delivery and logistics, which is being nurtured as one of its future new businesses.

Once the stock transaction is completed, LG Electronics will become the largest single shareholder of Bear Robotics. Bear Robotics, led by CEO Ha Jung-woo, a former Google software engineer, was established in 2017. It has many engineers from big tech companies such as Google, including co-founder and Chief Technology Officer (CTO). The company provides AI-based autonomous indoor delivery robot services not only in Korea but also in the United States, Japan, and other countries.

The company's open platform-based robot development capabilities are evaluated as top-tier globally. In particular, it has outstanding capabilities in commercial robot software platformization, swarm control technology that manages multiple robots, and cloud-based control solutions, attracting industry attention.

LG Electronics has boldly restructured its limited businesses such as mobile phones and solar power over the years and concentrated resources on future high-growth areas. This equity investment is also intended to accelerate the early commercialization and nurturing of the commercial robot business. It emphasized that the paradigm of commercial robots will shift to AI-based software-defined robots (SDR), and securing scalability of service robots based on an open-structured software platform is essential.

For this, standardization of AI-based autonomous robot platforms is important, and this investment is expected to be an opportunity to rapidly enhance the capabilities of the robot business, which is being nurtured as a future new business.

LG Electronics has its own commercial robot production facility at LG Future Park in Gumi, Gyeongbuk, and has introduced optimized solutions for various commercial spaces such as delivery and disinfection since starting the Incheon International Airport guide robot service in 2017. By combining Bear Robotics' global R&D infrastructure and software platform capabilities, LG Electronics explained that it can lead robot platform standardization, drastically reduce market entry costs, and maximize business efficiency and synergy.

Samsung AI companion robot Bolly. Photo by Samsung Electronics

Samsung Electronics has designated robots as one of its future growth engines and continues its research, development, and investment.

Samsung Electronics, which has been steadily researching care robots and home robots, upgraded its 'Robot Commercialization Task Force (TF)' to a permanent organization called the 'Robot Business Team' in the second half of 2021, signaling its intention to actively pursue the robot field as a new business. Last year, it also acquired shares in Rainbow Robotics, which possesses multi-legged walking robot platform technology.

At CES 2024, Samsung made headlines by unexpectedly unveiling 'Bolly,' a companion robot applying generative AI. The ball-shaped robot Bolly continuously learns user patterns, evolves on its own, assists with daily home appliance usage, monitors the home, and takes care of elderly family members or pets.

Samsung Electronics Chairman Lee Jae-yong, who visited Suwon Digital City on the 7th, reportedly showed interest after watching a demonstration of Bolly, suggesting, "Please consider linking it with Galaxy wearable products," and expressing hope that "functions for elderly living alone would be included in Bolly."

In addition, Samsung Electronics plans to start its medical wearable robot, introduced this year, as a B2B (business-to-business) service in silver towns, fitness centers, and Pilates centers, and then expand it to B2C (business-to-consumer).

The composition of Samsung Electronics' board of directors also reflects a strong commitment to investing considerable capabilities in the robot business. Samsung Electronics recently announced through a public disclosure that it has nominated Professor Cho Hye-kyung of Hansung University’s AI Application Department as a new outside director candidate. Professor Cho is a full member of the Korean Academy of Engineering, a director (chair) of the Korea Robot Industry Promotion Agency, vice president of the Control, Robotics and Systems Society, and president of the Korean Robotics Society, making her a robot expert.

Robots, like today's automobiles, integrate various fields such as AI, semiconductors, optics, communications, software, and mechanical engineering, and have limitless scalability from manufacturing to logistics, food service, medical, and both commercial and home use.

With the advent of generative AI, robots will continuously learn diverse information through software and become increasingly 'smarter,' signaling an era where competition among major companies striving to lead the robot market is expected to intensify.