LG Electronics plans to ... > 경제기사 | economics

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[Alpha Biz= Reporter Paul Lee] LG Electronics plans to invest over 4 trillion won in equipment this year, with a significant portion allocated to the Vehicle Solutions VS and Business Solutions BS divisions, indicating a ramp-up in vehicle-related businesses such as automotive components and electric vehicle EV chargers.

According to LG Electronics quarterly report released on the 17th, the company plans to invest 4.3845 trillion won in new facilities and equipment acquisitions this year, marking an increase of over 200 billion won compared to last years investment of 4.1586 trillion won.


In terms of business segments, the investment amount for the VS division, responsible for automotive-related businesses, is 1.970 trillion won, similar to the investment amount for the Home Appliances amp; Air Solution Hamp;A division, which oversees LG Electronics main revenue source, home appliances, at 1.1048 trillion won.

The investment scale of the VS division for this year has increased by 26.3% compared to last year 868.5 billion won.

With the rise of electric vehicles as the next major revenue source after home appliances, LG Electronics equipment investments are rapidly increasing. LG Magna, a subsidiary of LG Electronics, plans to establish an electric vehicle component production plant in Hungary by next year. The plant will produce core components of electric vehicles such as drive motors and power conversion devices according to demand.

LG Magna established a new factory in Mexico in September last year and began producing vehicle components. LG Electronics stated its plans to continue expanding investments to meet demand in the North American region.

The VS divisions sales for the first quarter of this year amounted to 2.6619 trillion won, an increase of 275.4 billion won compared to the same period last year 2.3865 trillion won.

The BS division, responsible for LG Electronics electric vehicle charger business, also plans to invest 105.1 billion won this year, an increase of approximately 29.5% compared to last year 81.1 billion won.

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/ 알파경제 Paul Lee Reporter