LG Electronics, LogisValley ink deal on smart factory development

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LG Electronics, LogisValley ink deal on smart factory development

Published: 01 Jul. 2025, 15:47 Updated: 01 Jul. 2025, 18:32

Audio report: written by reporters, read by AI

Jeong Dae-hwa, executive vice president and head of the Production Engineering Research Institute at LG Electronics, right, and Lim Young-bin, chair of LogisValley, pose for a photo at a memorandum of understanding signing ceremony at LG Digital Park in Pyeongtaek, Gyeonggi, in this photo provided on July 1. [LG ELECTRONICS]

LG Electronics said Tuesday it signed a memorandum of understanding with LogisValley, Korea’s largest integrated logistics company, to jointly develop smart logistics centers. The agreement was finalized at LG Digital Park in Pyeongtaek, Gyeonggi.

LogisValley develops and leases logistics centers and provides consulting services for domestic and international clients. It also directly operates more than 50 logistics centers worldwide.

The partnership aims to combine LG Electronics’ smart factory technologies — such as robots, digital twins, big data and generative AI — with LogisValley’s expertise in designing, building and managing logistics hubs to deliver tailored smart logistics solutions.

For instance, LG Electronics plans to deploy a range of robots, including autonomous robots equipped with arms, to automate box packing and other traditionally manual logistics processes. Visual AI using cameras will help minimize errors in packaging and sorting.

The companies will also automate inventory classification and storage to maximize space efficiency, as well as outbound processes using robots.

Digital twin technology will enable virtual replication of logistics centers to simulate workflows in advance.

An autonomous robot developed by LG Electronics’ Production Engineering Research Institute transports a kit for parts and materials in this photo provided on July 1. [LG ELECTRONICS]

Both firms agreed to advance smart logistics solutions and jointly pursue global sales opportunities. They will also collaborate from the initial design stages to ensure that LG’s smart factory solutions deliver optimal synergy in new logistics centers built by LogisValley.

Additionally, LG Electronics plans to implement customized solutions in both LogisValley’s directly operated facilities and its own home appliance logistics centers to enhance overall efficiency.

According to Fortune Business Insights, the global smart logistics market is projected to grow from around $88.1 billion in 2025 to $212.8 billion by 2032, with an average annual growth rate of 13.4 percent.

“We will leverage the logistics expertise we’ve accumulated by building and running our own lighthouse factories to become a trusted partner in the rapidly growing smart logistics sector,” said Jeong Dae-hwa, head of LG Electronics’ Production Engineering Research Institute.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK HAE-LEE [[email protected]]