LG Electronics to spin off 4 in-house ventures in AI, robotics; offer up to 400 million won in funding

  LG Electronics said its in-house ventures are preparing to become independent startups, with four teams selected to spin off from the company after developing business-to-business technologies in artificial intelligence, robotics and advanced materials.

The company said Monday it recently held a “Studio341 Demo Day” and chose four teams that have met the requirements for a final spin-off.

Studio341 is an internal venture program launched in 2023 to carry forward the challenge-and-innovation spirit of GoldStar, LG’s predecessor. The name comes from 341 Yeonji-dong, Busanjin-gu, Busan — GoldStar’s first address. LG Electronics works closely with startup accelerator Bluepoint Partners from selection and mentoring through the spin-off process.

This year’s selected teams are: Seka, an AI solution that detects errors in hardware design data; MachineFlow, an enterprise AI coding agent aimed at improving code quality; PreKitchenLab, a kitchen automation robot and operations management B2B solution; and Atomer, a fabless-based design solution for advanced flame-retardant materials.

The teams advanced to the final round in July last year after a competition of about 12-to-1, then completed mentoring and passed a final review. The final panel included officials from LG Electronics, startup development specialists and venture capital firms, and assessed business value as well as team composition and capabilities.

Depending on the review results, each team will receive up to 400 million won in initial investment, LG Electronics said. The company plans to complete the spin-off procedures in July.

LG Electronics said it will continue providing support for a period after the spin-offs to help the startups establish themselves in the market, while also seeking synergies in AI automation solutions, robotics and advanced materials.

The first startups spun off in 2024 have been selected for South Korea’s TIPS tech startup support program and the DIPS “super-gap” startup initiative, the company said, and have been recognized for business performance and technology across areas including AI, robotics, materials and platforms.

Since last year, LG Electronics has also expanded the program to pursue open innovation with external startups that have solutions aimed at creating new customer experiences.

Kang Sung-jin, head of partnerships at LG Electronics, said that as the era of “physical AI” arrives, partnerships among companies with strengths in different technologies and solutions are becoming more important. He said LG Electronics will continue supporting Studio341 spin-offs so they can grow into reliable partners for the company.