LG Innotek CEO Moon Hyuk-soo speaks during a meeting with reporters after the company's annual shareholders' meeting at its office in Magok-dong, southwestern Seoul, Thursday. Courtesy of LG Innotek

LG Innotek is planning to diversify its business portfolio, which is currently focused on camera modules for mobile devices, by growing its sales of automotive components to 5 trillion won ($3.8 billion) within five years, up from the current 2 trillion won, its CEO said Thursday.

"The sales in the automotive business, including vehicle cameras from our optics solutions business, are in the 2 trillion won range, but we plan to increase the figure to the 5 trillion won range within five years," Moon Hyuk-soo, the company's CEO, told reporters after its annual shareholders' meeting. "Given the order backlog for vehicle cameras alone is currently at around 13 trillion won, it is a feasible goal."

LG Innotek is the global market leader for mobile device camera modules. The CEO has played a key role in growing the company's optics solution business, supervising from 2009, and was appointed CEO in December in recognition of his expertise and leadership.

In 2023, LG Innotek set an annual sales record of 20 trillion won for the first time, but with around 80 percent of sales concentrated in camera module business, the company is looking to diversify its business portfolio in other sectors such as automotive components and semiconductor packaging substrates.

"Through technological convergence and synergy between the automotive parts business and the optics solutions business, we will establish ourselves as a leading player in the mobility sector beyond mobile," the CEO said. "We will strengthen our business competitiveness by expanding our facilities and equity investments."

Mentioning that executives of LG Group affiliates recently visited the headquarters of Mercedes-Benz, the CEO added that cooperation with the German luxury carmaker could be strengthened in the future.

"LG Innotek is preparing 18 types of automotive components, and the LG Group as a whole is discussing about 50 types since last year with Mercedes-Benz and other companies," he said.

The CEO also said the company's semiconductor packaging substrate business, stating that its new factory in Gumi, North Gyeongsang Province, which produces flip chip ball grid arrays (FC-BGA), has started mass production this year and will show tangible results in the second half of the year.

Chip package substrates protect and ensure the precise connection between integrated circuits and mainboards for reliable transmission of electrical signals. The industry view is that the demand for FC-BGAs will soar due to the increasing use of central processing units and graphic processing units, network servers and other IT devices.