TLDR:
- LG Electronics has spun off five in-house venture firms to strengthen South Korea’s startup ecosystem.
- The spin-offs include X-UP, Shinsun Go, Found Objet, Qcumber, and Masket.
LG Electronics Inc. announced the spin-off of five promising in-house venture firms, including X-UP, as separate entities. These spin-offs aim to enhance South Korea’s burgeoning startup ecosystem. X-UP, one of the spin-offs, showcased a robot solution that tracks the condition of grass on golf courses to predict and manage damage. The five teams presented their ideas at LG Science Park, where six teams participated in a demo day to pitch their ideas to employees and investors.
The spin-off process will be completed by the end of June after negotiations with the venture firms on the initial investment amount and other conditions. LG has been nurturing in-house venture programs since 2020 and introduced a new program called Studio 341 in June 2023. This program is named after the address where LG’s previous company, Lucky Goldstar, was established in 1958.
In collaboration with Bluepoint Partners, an accelerator specializing in startup development, LG shortened the time needed to select in-house venture firms. Of the 110 ideas submitted, 13 teams were selected for the first screening, and six teams passed to the second round. LG and Bluepoint Partners will jointly invest up to 400 million won ($297,530) in each of the five chosen teams. The aim is for these spin-offs to grow into successful companies, according to Lee Sam-soo, LG’s chief strategy officer.
Overall, LG’s spin-off of in-house venture firms highlights its commitment to fostering innovation and contributing to the growth of South Korea’s startup ecosystem.
