LS Group decided to invest 10 trillion won in future businesses in the next five years. The group has a strategy to nurture future growth engines by aggressively investing in the future energy sector, such as the undersea cables, the group’s strength, semiconductors and advanced materials for secondary batteries.
It was the first time that under the stewardship of Chairman Koo Ja-eun, who took office early this year, the group came unveiled a long-term investment plan.
The investment plan may be construed as Chairman Koo’s signal to actualize in earnest his two-pronged management approach, including a focus on advanced technologies in conventional mainstay businesses, such as electricity and materials.
Chmn. Koo Ja-eun delivered his New Year’s speech on Jan. 3 after taking office, stressing data-based globalization and ESG growth. He also wants to focus on maxing out synergetic effects of businesses by balancing advanced future technologies like AI, big data and IoT so the company can be reborn into a customer-oriented solution provider.
Business sources said LS Group plans to invest 10 trillion won in the United States and emerging markets like Central and South America and Southeast Asia in the next five years. The investments will go into the future energy, advanced materials and EV sectors.
As for the future energy sector, the group will focus investments into undersea cables and super high-voltage DC transmission for LS Cable & System, super high-voltage transmission and hydrogen for LS ELECTRIC and hydrogen for E1.
In the advanced material sector, LS Nikko-Copper will invest into semiconductor and secondary battery materials while in the EV sector, LS Cable & System and LS ELECTRIC will expand businesses in EV parts and EV charging solutions, respectively.
The group has already executed investments. LS Corp. and E1 jointly invested in inaugurating LS E-Link, an EV charging business, in April.
The joint-venture is designed to max out synergetic effects by converging the group’s in-house EV and electric knowhow.
LS Nikko-Copper struck a contract to buy the whole of a 49.9 percent stake in the company, owned by a Japanese consortium.
The decision is part of efforts to nurture LS Nikko-Copper based on the conventional material businesses into a comprehensive material company producing even semiconductor and secondary battery materials.
Chairman Koo launched a field tour of 14 operation sites across the nation in May. The tour will last until late July. The tour is designed to look into the operation sites, which will emerge as the group’s future growth engines.
Chairman Koo also emphasized growth together with society through ESG management.
Each subsidiary of LS Group is producing solutions that can offer differentiated values and new experiences by gathering and analyzing data on a variety of situations customers experience while using products by utilizing digital technologies such as IoT and big data.
LS Cable & System has introduced “One Pick,” an online B2B cable sale system. The system is the outcome of a project to push business model innovation by employing digital technologies.
One Pick enables cable outlets to take stock of inventory, request a quotation, and procure and deliver products in real time.
LS ELECTRIC, a power, automation and smart energy unit of LS Group, was designated as one of 2021 “lighthouse factories” by the World Economic Forum LS ELECTRIC became the second Korean company to be designated as a lighthouse factory for sustainability and productivity breakthroughs.
WEF’s Global Lighthouse Network Annual Meeting 2021 designated LS ELECTRIC’s smart factory in Cheongju, Chungcheongbuk-do, as one of the 2021 lighthouse factories.
Lighthouse factories are factories which achieve new manufacturing outcomes using exemplary models by making the most of core technologies of the 4th Industrial Revolution, such as IoT, AI and cloud, like a lighthouse guiding ships by lighting up a dark sea.
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