LG Chairman Kwang Mo Koo Calls for Bold Action After Visit to North America: 'Let’s take on big challenges and move forward with confidence'

■ LG Corp. Chairman and CEO Kwang Mo Koo embarked on a four-day trip to North America from June 17th
□ Chairman Koo visited Tennessee and Silicon Valley to discuss business strategies for North America and examine future preparations.
□ In Tennessee, the key forward base for LG in North America, he reviewed local business strategies including the company's response to changing trade policies. In Silicon Valley, he emphasized the challenges of preparing for the next 10 to 20 years.
□ Since taking office, Chairman Koo has visited North America, the world's largest market, every year for on-site management, except during the COVID-19 pandemic in 2020 and 2021.

■ "Thank you for your hard work," was Chairman Koo's first remark during six meetings with local employees
□ "Tennessee has become an important base of operations for LG in the North American market thanks to your hard work and dedication," said Chairman Koo. "Let's be confident and proud, and continue to work together to build a differentiated competitive advantage in the global market."
□ "New endeavors and changes always bring challenges but the foundation of a stronger LG in the future lies in the meaningful efforts you make as you take them on," he told employees in Silicon Valley.

■ "Let's take on big challenges and move forward with confidence to win the long-term race to achieve sustainable growth"
□ "Everyone is facing the same volatility in the business environment with the changing market and customer trends, the competitive landscape, and the shifts in trade policies and logistics," said Chairman Koo. "To overcome this, let's create new opportunities and strive for a fundamental strengthening of competitiveness by reinforcing our product portfolio, supply chain, innovation processes, and localization capabilities to improve yields and quality."
□ He underscored LG's dedication to create a competitive customer value that is differentiated from others, which will attract more partners to LG.

■ Overhauling Business Strategies at LG's Forward Base in Tennessee
□ Chairman Koo visited major affiliates, including LG Electronics and LG Energy Solution, to discuss business strategies for North America in-depth.
□ He examined measures the company will take to strengthen LG's competitiveness.

■ Preparing for the future by reviewing new business and technology strategies in Silicon Valley in the fields of AI, Biotechnology and Cleantech
□ Chairman Koo visited LG Technology Ventures to discuss investment portfolio strategies to enhance competitiveness in strategic business areas like AI.
□ At LG Electronics' North America Innovation Center (LG NOVA), he listened to commercialization efforts in healthcare and cleantech.

■ In addition to LG businesses, meeting with the world's best AI startups
□ Chairman Koo visited Jim Keller, CEO of the semiconductor design company Tenstorrent, to discuss AI semiconductors.
□ He toured Figure AI, which took the world by surprise with its 'thinking robot,' and discussed the prospects of the AI robot market.
□ Chairman Koo's efforts to explore the latest trends in AI technology were also evident last year, as indicated by his visits to Vector Labs and Xanadu Labs in Canada.

On June 17, LG Corp. Chairman and CEO Kwang Mo Koo began a 4-day visit to Tennessee and Silicon Valley to assess business strategies for North America and review hot the company is preparing for the future.

In Tennessee, a location established as LG's forward base for major affiliates in North America, he toured LG Electronics' manufacturing plant and the Ultium Cells joint venture between LG Energy Solution and GM. In Silicon Valley, he visited LG's startup investment hub, LG Technology Ventures, and the LG Electronics North America Innovation Center (LG NOVA) to discuss startup investment and development strategies for future readiness, particularly in the field of AI.

Chairman Koo's visit to Tennessee was to review strategies to the rapidly changing business environment. This includes potential changes to trade policies as well as ever-changing consumer and market trends. His visit to Silicon Valley, which is always oriented towards the future, focused on the challenges facing the company in the next 10 to 20 years.

During his visit to North America, he met with employees on six occasions, all of which began with Chairman Koo thanking them for their hard work and dedication. He also urged them to be confident and proud of their accomplishments. "Let's take on big challenges and confidently move forward in the long-term race to achieve sustainable growth," said Chairman Koo, further inspiring and encouraging employees for the road ahead.

Since taking office in 2018, Chairman Koo has visited North America every year for on-site management, except during the COVID-19 pandemic years of 2020 and 2021.

History of Chairman Kwang Mo Koo's visits to North America

- 2019: Silicon Valley, USA - LG Technology Ventures
- 2022: Ohio, USA - LG-GM JV Ultium Cells Plant 1
- 2023: Boston, USA - LG Chem Life Sciences Division; Toronto, Canada - LG Electronics AI Lab
- 2024: Silicon Valley, USA - LG Technology Ventures, LG Electronics North America Innovation Center (LG NOVA)
- 2024: Tennessee, USA - LG Electronics Tennessee Plant, LG-GM JV Ultium Cells Plant 2

■ Overhauling Business Strategies at LG's Forward Base in Tennessee

Chairman Koo assessed business strategies for North America by visiting major affiliates such as LG Electronics, LG Energy Solution, and LG Chem in Tennessee.

Located in the southeastern United States, Tennessee is bordered by eight states, including Georgia and Alabama, making it efficient for transportation and logistics. It is a strategic location chosen by global automotive companies such as General Motors, Volkswagen, and Nissan to target the North American electric vehicle market. This makes Tennessee an optimal location for businesses focusing on batteries and cathode materials.

Leveraging these geographical advantages, LG has established Tennessee as a forward base for its North American market expansion. Following the completion and operational start of LG Electronics' home appliance production plant in late 2018, the second plant of Ultium Cells, a joint venture between LG Energy Solution and GM, began operations in March this year. LG Chem plans to build the largest cathode material plant in the United States in this region, with full-scale production of nickel, cobalt, and manganese (NCM) cathode materials set to begin in 2026.

During his visit to LG Electronics' Tennessee plant, Chairman Koo reviewed the status of LG Electronics' North American business together with Lyu Jae-cheol, President of LG Electronics Home Appliance & Air Solution Company, and Chris Jung, President and CEO of LG Electronics North America. They also discussed response scenarios to changes in the business environments, including changes in competition and distribution in the US market.

Chairman Koo also inspected the production lines for washing machines and dryers, which are equipped with smart factory technologies such as robotic automation and unmanned logistics. The Tennessee plant, LG Electronics' key global production base, boasts a complete integrated production system that produces everything from parts to finished products like washing machines, dryers, and WashTowers. Last year, the company became the only consumer electronics company in North America to be named a Lighthouse Factory by the World Economic Forum.

At the second Ultium Cells plant, Chairman Koo reviewed the outlook for the North American electric vehicle market and trends among major customers. He also assessed plans for business portfolio management and investment strategies for automotive components, including batteries and cathode materials.

His previous visit to Ultium Cells' first plant in Ohio was in 2022, when he was on another business trip to North America to assess the market.

"Everyone is facing the same volatility in the business environment, with ever-changing market and consumer trends, the competitive landscape, and the shifts in trade policies and logistics," said Chairman Koo. "To overcome this, let's create new opportunities and strive for a fundamental strengthening of competitiveness by reinforcing our product portfolio, supply chain, innovation processes, and localization capabilities to improve yields and quality."

■ Preparing for the future by examining startup development strategies in Silicon Valley

After reviewing the business strategies of LG's major subsidiaries in North America, Chairman Koo traveled to Silicon Valley to explore future business opportunities.

Silicon Valley is a global battleground for big tech and a mecca for startups. It's also home to some of the world's most intense discussions on cutting-edge technologies, such as AI and autonomous driving.

Since establishing the corporate venture capital (CVC) firm LG Technology Ventures in Silicon Valley in 2018, and the North America Innovation Center (LG NOVA) in 2020, LG has been working diligently to strengthen collaboration with global startups and discover future growth engines.

LG Technology Ventures plays a key role in incubating global startups and operates a KRW 1 trillion fund that was established with contributions from seven major LG affiliates. It invests in startups not only in Silicon Valley but also in regions such as Canada and Israel. To date, it has invested $360 million (about KRW 500 billion) in over 80 startups and funds. Notably, about half of the total investment has been in AI, Biotechnology and Cleantech, which LG has identified as future growth engines.

During his visit to LG Technology Ventures, Chairman Koo met with CEO Kim Dong-su and other executives to receive reports on the status of investments and business development. He also gave encouragement to the team and exchanged views on investment portfolio strategies to strengthen LG's competitiveness in future businesses including AI.

Chairman Koo closely examined products and technologies from startups in which LG Technology Ventures has invested, focusing on areas that can create synergies with LG's existing businesses. These startups include Inworld AI (an AI-based character creation solution platform for virtual environments), Eko Health (a startup developing digital stethoscopes powered by AI for early detection of heart and lung diseases, including heart failure), and South 8 Technologies (a company developing liquid gas electrolytes for next-generation lithium-ion batteries capable of operating at cryogenic temperatures).

Chairman Koo also visited the LG Electronics North America Innovation Center (LG NOVA). Established in 2020, LG NOVA aims to discover new business models and foster collaboration with startups. Unlike typical venture investments that prioritize securing returns, LG NOVA takes an outside-in approach, creating and commercializing new business models through collaboration with external startups.

During his visit, Chairman Koo met with Dr. Sokwoo Rhee, Head of LG NOVA, and other team members. He encouraged their efforts to create change through the outside-in approach and listened to the progress of new business developments. He also examined commercialization case studies in Healthcare and Cleantech.

Speaking on the day, Chairman Koo said: "I believe the key to success in any new business is creating better, more competitive solutions, and a better solution depends on providing customer value that is differentiated from others. This will attract more startups and partners to LG and will create a virtuous circle where new business models will continue to evolve."

■ Exploring the latest technology trends at world-class AI startups in Silicon Valley

In Silicon Valley, Chairman Kwang Mo Koo visited AI startups with world-class technology outside of LG's businesses to review the latest trends in AI that could enhance LG's AI competitiveness.

He toured Tenstorrent, an AI semiconductor design company, and Figure AI, an AI humanoid robot startup, to closely examine the entire AI value chain, from semiconductor design to robotics.

During his visit to Tenstorrent, Chairman Koo met with the company's CEO Jim Keller to discuss trends in AI semiconductors and Tenstorrent's technology, as well as the impact of the proliferation of AI on the semiconductor industry. AI semiconductors are increasingly used in various AI-based businesses, including home appliances, electronics, and telecommunications.

Founded in 2016, Tenstorrent is a fabless startup specializing in the development of AI semiconductors. Headquartered in Toronto, its main business models are IP licensing (patent technology leasing) and custom chiplet design, which integrates multiple chips into one.

Chairman Koo also visited the AI humanoid robot startup, Figure AI. He met with founder and CEO Brett Adcock to learn about the current state of the humanoid robot market and key technology trends, while also observing Figure AI's humanoid robot, "Figure 01," in action.

Headquartered in Sunnyvale, California, Figure AI is a startup specializing in humanoid robots. It was founded in 2022 by Brett Adcock, who previously founded a job search platform and an electric vertical take-off and landing aircraft company, along with a group of engineers from various big tech companies. Figure AI has garnered significant attention through investments from Microsoft, OpenAI, NVIDIA, and Amazon's Jeff Bezos. In March this year, the company released a demonstration video of Figure 01, an AI humanoid robot that can make its own decisions, which also received global attention.

Chairman Koo's focus on reviewing the broader AI ecosystem by visiting not only LG affiliates but also external startups reflects his belief that AI will drive innovation across all industries and significantly impact business structures in the future. During his visit to North America last August, Chairman Koo also visited Vector Labs and Xanadu Labs in Toronto to gain more insights on the latest technology trends in AI.

LG has identified AI as a future business and is committed to strengthening its competitiveness in AI technology through bold investment and innovation. The LG AI Research, established in 2020, developed EXAONE, a multimodal AI model capable of bilingual language processing and bidirectional generation of language and images, in 2021. It is the only model of its kind in Korea. The Institute is also developing specialized AI solutions that can be used by LG affiliates and global partners across various industries. LG's investments and efforts in AI are yielding tangible results in the business operations of its affiliates.