Robostar Co.’s robots are displayed at its booth at the 2018 Robot World exhibition held in KINTEX near Seoul. (Yonhap)
SEOUL, July 15 (Korea Bizwire) — Robostar Co., a robot manufacturing subsidiary of LG Electronics Inc., is now at a turning point for full-scale growth with the South Korean tech giant selecting the robot business as one of its future cash cows.
The company is now hiring a large number of new and experienced employees in the sales and R&D areas, according to industry sources.
Robostar, located in Ansan in Gyeonggi Province, is a specialist in manufacturing industrial robots. LG acquired a 30 percent stake in the company in 2018, securing managerial rights.
Robostar was expected to play a key role in the robot business that LG selected as one of its future cash cows. The company, however, slipped into the red in the following year.
After several years of posting disappointing results, the company succeeded in returning to profitability in the first quarter of this year, recording an operating profit of 89.6 million won (US$78,160).
Industry experts noted that LG’s expansion of its robot business led to improvements in Robostar’s financial performance.
Robostar’s massive hiring move reflects the company’s intention to expand its business as it enters full-scale growth trajectory.
“Thanks to the trend towards unmanned smart factories, the growth potential of robot makers is gaining attention. The company could ride high on the post-pandemic recovery and a stronger synergy effect with LG,” an industry watcher said.
Kevin Lee (kevinlee@koreabizwire.com)
