Fund Created by Chairman Son Tae-jang of Mistletoe
Main Investor Participates with "13.5 Billion Won Investment"
Nurturing Potential AI, Deep Tech, and Robotics Startups
Expectations for Strengthened Networking and Investment Opportunities
LG Electronics will participate as a major limited partner (LP) in an investment fund created by Son Tae-jang (Son Taijo), the brother of Son Masayoshi (Japanese name of Son Jeong-ui), chairman of SoftBank Group.
Son Tae-jang, President of Mistletoe
On the 18th, LG Electronics announced that it will invest $10 million (approximately 13.5 billion KRW) in the newly established $130 million (approximately 176 billion KRW) "Alpha Intelligence Fund" by the global investment firm SBVA (formerly SoftBank Ventures Asia).
SBVA will build a portfolio by including startups with high growth potential in artificial intelligence (AI), deep tech (leading-edge technology), and robotics sectors in the Alpha Intelligence Fund. SBVA plans to utilize its global network and resources to help the startups it invests in grow and achieve meaningful results.
LG Electronics plans to participate in the SBVA fund to mutually share rapidly changing innovation technology trends and reflect global market changes in its management. Through this investment, it aims to continue qualitative growth by expanding cooperation with innovative startups and securing future technologies.
The company envisions strengthening networking with companies and startups leading innovation worldwide, discovering additional opportunities such as strategic investments, and securing technological capabilities for future businesses.
Yu Woo-jin, leader of the Open Innovation Task at LG Electronics’ CSO division, said, "Through participation in the fund, we will seek opportunities to secure AI capabilities through active open innovation activities and strengthen LG Electronics’ position within the AI value chain. We plan to discover and collaborate with capable startups to explore future business opportunities."
Lee Jun-pyo, CEO of SBVA, stated, "Based on differentiated technological expertise, global networks, and investment experience, we will continue investments that accelerate technological innovation. We plan to maximize the growth momentum of invested companies by supporting the establishment of joint ventures (JVs) between startups and major limited partners and attracting strategic investments that promote collaborative projects."
LG Electronics expects this investment to accelerate its transformation into a "Smart Life Solutions" company by securing innovative technologies for new growth engines such as platform-based service businesses, business-to-business (B2B), and new ventures. The strategy is to continue efforts to secure future core technologies and expand business areas beyond the home to mobility and business spaces.
Previously, LG Electronics acquired shares in "AtHome," a smart home platform company headquartered in the Netherlands, in July, and invested in "Bear Robotics," a US Silicon Valley-based AI-driven autonomous service robot startup, in March. Additionally, through the North America Innovation Center (LG NOVA), LG Electronics has been discovering, nurturing, and supporting the commercialization of global startups with innovative ideas annually since 2021, seeking new business opportunities.
Meanwhile, SBVA, a venture capital firm under SoftBank Group established in 2000 as SoftBank Ventures, became independent last year after being acquired by The Edgeof, an investment company led by Chairman Son Tae-jang.
SBVA manages assets totaling approximately 2.5 trillion KRW and has branches in San Francisco, Israel, Singapore, and Seoul. It currently invests in over 100 companies. SBVA plans to expand the Alpha Intelligence Fund’s capital to $200 million by recruiting portfolio companies in Taiwan, Indonesia, Vietnam, and other regions within this year.
In addition to LG Electronics, SK Networks and Hanwha Life are also participating in this fund investment. SK Networks announced on the 16th that it will invest $30 million (approximately 40.6 billion KRW) in the Alpha Intelligence Fund.
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