LG Electronics established a venture capital firm in Silicon Valley last month. LG Technology Ventures is virtually the first venture capital firm ever set up by the LG Group. The establishment of the company is seen as reflecting the group’s efforts to discover future growth engines under a new chairman.
According to the venture capital industry and foreign news media on June 3, LG has been recruiting talent with experience at global investment banks and venture capital firms since posting job openings for LG Technology Ventures last month. Kim Dong-soo, a former vice president of Samsung Venture Investment, was appointed as president of LG Technology Ventures.
The new venture capital company will manage investments from LG Group affiliates. LG Electronics, LG Chem, LG Display and LG U+ raised investment funds totaling 430 billion won in March. When LG Technology Ventures finds promising start-ups, these firms will make investment decisions.
In this regard, LG is expected to acquire start-ups, make equity investment in promising companies, and bring in talented people from outside more actively. Under an open innovation strategy, the group has invested in AI start-up Acryl, and Robostar, which specializes in industrial robots.