LG invests $74 billion in South Korea until 2028: AI, biotech, batteries, clean tech, displays

LG is promising a whopping 100 trillion won (around $74.3 billion USD) in investments in South Korea through 2028. Half of the $74.3 billion will go towards future growth drivers, including AI, biotechnology, batteries, and displays.

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According to LG, the huge $74.3 billion sum will be 65% of LG's entire global investment for the same four-year period. The gigantic new investment plan was announced on Wednesday at LG's recent 62nd shareholders meeting. It comes in hot off the heels of fellow South Korean company -- SK hynix -- which announced an even bigger $90 billion investment for the "world's largest mega fab complex" in South Korea.

LG Chairman Koo Kwang-mo, said: "The global management environment in 2024 will have more uncertainties as a number of inflection points reside related to the generalization of AI, decarbonization, and so on. While closely monitoring the industries around our core businesses, we will bolster future businesses like AI, bio and cleantech so they can grow into main pillars of our future business portfolio".

LG added that 55% of the announced $74.3 billion investment will be dedicated to research and development (R&D) and smart factories, where the company -- along with SK hynix and Samsung -- will make South Korea a gigantic, next-generation manufacturing hub. SK hynix is also planning investments into new advanced chip packaging facilities in the US, with a proposed $4 billion investment into a new advanced chip packaging plant in Indiana, USA.