South Korean firm LG Electronics is expanding its smart factory innovations into the rapidly evolving smart logistics sector.

The company recently signed a memorandum of understanding (MoU) with LogisValley from the LG Digital Park in Pyeongtaek, Korea. The agreement will see joint development of logistics centre technology by combining the two companies’ strengths.

As Korea’s largest integrated logistics company, LogisValley provides services in logistics centre development, leasing and consulting to a wide range of domestic and global clients. The company also directly operates over 50 logistics centres around the world.

The partnership aims to deliver customised smart logistics technology that addresses the evolving needs of global customers. This will be achieved by integrating LG’s expertise in industrial robotics and digital-twin technologies with LogisValley’s capabilities in logistics centre design, construction and operations.

Through this collaboration, the two companies will work together to advance smart logistics and pursue joint go-to-market strategies targeting global customers. Notably, LG will collaborate with LogisValley from the early design stages of new logistics centres to ensure optimal integration of LG’s smart factory technologies, increasing synergy and operational efficiency.

LG’s smart factory portfolio encompasses a wide range of capabilities, including industrial robots, digital twin-based production system design and monitoring, and big data and generative AI-powered process, safety and quality management. These are expected to generate significant impact in logistics operations, where accuracy and efficiency are key.

A major focus will be automation. LG’s broad line of robots – such as autonomous mobile robots equipped with robotic arms – can automate labour-intensive logistics tasks such as box picking. Vision AI technology reduces errors in packaging and product sorting, enhancing precision and reducing reliance on manual labour.

In addition, LG’s experience in managing large volumes of manufacturing components across its production sites enables the company to provide automation that optimises space use. By efficiently categorising and storing items, LG facilitates robotic outbound processes within logistics centres.

Digital-twin technology serves as another differentiator. By creating virtual replicas of logistics environments, LG can simulate and analyse material flows to design more effective robotic workflows. These simulations allow optimisation before deployment, while real-time monitoring helps proactively detect and address potential disruptions, improving overall operational efficiency.

Beyond third-party applications, LG and LogisValley will apply these smart logistics technologies internally to enhance their own operations. Customised systems will be implemented at LogisValley’s self-operated logistics centres and LG’s home appliance logistics hubs to boost internal productivity and efficiency.

In a separate initiative, LG and LogisValley have signed an agreement to collaborate on a commercial development project in the West Lake district of Hanoi, Vietnam. The upscale complex will feature a six-star hotel and shopping mall, with LG providing commercial display products.

Among the featured offerings by LG (lg.com) is its latest hotel TV, the first to support both Apple AirPlay and Google Cast. Guests can stream content from their devices simply by scanning a QR code, with all personal data automatically erased at checkout to ensure privacy and security.

Other offerings include the LG Magnit All-in-One, a 345cm micro LED display with integrated controller and speaker, suitable for business environments, and an interactive whiteboard equipped with AI summary and chatbot features for educational settings. All of these can be integrated into LG’s Business Cloud platform, which provides seamless hardware-software management for commercial displays.

“This partnership is a major step forward in becoming a trusted partner in the fast-growing smart logistics industry,” said Jeong Dae-hwa, head of LG’s production-engineering research institute. “By leveraging the logistics expertise we’ve built through operating our Lighthouse smart factories, we aim to create real value for our customers.”

Lim Young-bin, chairman of LogisValley (www.logisvalley.com), added: “Our collaboration brings together LogisValley’s smart logistics platform and LG’s advanced factory technologies. Together, we will accelerate innovation across logistics and manufacturing, and strengthen our global competitiveness.”