LG Innotek is transitioning into a solutions company and building a structure centered on high-profit businesses. LG Innotek said CEO Moon Hyuk-soo told a CES 2026 exhibition hall in Las Vegas on Jan. 7 that it is no longer a parts company but a solutions company. He said this year will be one that pushes a restructuring of the business toward high-profit, high value-added areas, led by solutions that deliver differentiated value.

Moon has pursued an upgrade of the business portfolio since taking office as CEO in December 2023. Profitability improved in the substrate and automotive electronics areas, and their contribution to companywide operating profit expanded. The company has also delivered results since last year in new business areas including robots, LiDAR and FC-BGA. In recognition of these achievements, he was promoted from executive vice president to president last year.

Moon said the company will focus this year on establishing a "High Performance Portfolio" business structure centered on high-profit and high value-added businesses to build a stable profit-generation system. He said it will strategically allocate companywide resources through selection and concentration to strengthen fundamental competitiveness while accelerating the fostering of new businesses to secure clear growth engines that will underpin LG Innotek in the future.

Moon also said it will secure winning technologies such as autonomous driving multi-sensing and glass substrates, and accelerate an AX transformation to strengthen both competitiveness improvements and the foundation for future growth. In an organizational reshuffle in December last year, the Substrate Materials Business Division and the Automotive Components Business Division changed their names to the Package Solutions Business Division and the Mobility Solutions Business Division, respectively.

Moon explained that a business model in which customers award bids for internally developed components is losing competitiveness. He said LG Innotek wants to shift its business paradigm into a company that provides optimal solutions that meet customer needs, based on the innovative technologies and product lineup it has accumulated so far.

Here, solutions refer to the collective ways of resolving customers' pain points. They encompass all measures that can address issues that were difficult to solve with a single existing component. Moon said LG Innotek's exhibition booth at CES 2026 actively reflected this direction by displaying products in solution units. He said a representative example is the company's autonomous driving multi-sensing solution, presented as an integrated solution combining vehicle camera modules with LiDAR, radar and linked software.

The company plans to expand its business this year centered on the profitable package solutions business to build a stable profit-generation system. As of the third quarter of 2025, cumulative revenue from the package solutions business was 1.2308 trillion won, up 14.3 percent from a year earlier. Cumulative operating profit was 80.2 billion won, up 65 percent from the same period a year earlier. The package solutions business contributed more than 20 percent of LG Innotek's total operating profit.

Moon said demand for semiconductor package substrates is expected to continue increasing for the time being, and LG Innotek's semiconductor substrate utilization rate is also expected to enter a maximum-capacity state. He said the company is reviewing various ways to expand package solutions capacity to meet demand.

Moon also said LG Innotek is accelerating development of glass substrates, a next-generation semiconductor substrate technology, as part of strengthening its high-profit package solutions business. He said the industry's technological capabilities have not yet been advanced as much as the market expects. He said solving problems such as cracks in glass caused by larger substrate sizes and stacking is a common industry task, and whichever side solves it first will lead the glass substrate market. According to LG Innotek, it is currently developing glass substrate prototypes in cooperation with global big tech companies. The collaborating glass substrate prototypes target mass production in 2028.

Since last year, LG Innotek has been working with U.S. firm Boston Dynamics to develop a vision sensing system for robots. Moon said LG Innotek will continue to identify areas such as robot sensing, actuators and motors, and tactile sensors, where it can provide strong customer value based on distinctive core technologies in sensing, substrates and control, and will continue reviewing commercialization. He said it will keep various possibilities open, including external cooperation and investment, in the process.