LG Electronics Inc. is exploring new business areas through technologies and services derived from its home appliance business. The company’s latest steps, which are believed to be forward-looking, are drawing much attention as they come at a time when the relevant markets have not yet even been formed.

LG Electronics signed a memorandum of understanding (MOU) with GS Engineering & Construction Corp. on Tuesday to commercialize its LG Smart Cottage portable housing unit, according to the electronics company. An LG Smart Cottage is a modular residential unit that is equipped with the electronics company’s key technologies and products, such as heating, ventilation and air conditioning (HVAC) units, home appliances and smart home technologies. LG seeks to sell the entire home, in which LG home appliances and other technologies are already installed.

GS Engineering & Construction specializes in prefabricated construction, able to assemble factory-made components to create a building. The MOU is seen as an attempt by the electronics giant to realize its Smart Cottage revenue stream.

Earlier, the electronics giant also announced another new business line, this time in antibacterial and water-soluble glass powder materials. Glass powder refers to fine particles obtained by milling down glass.

LG’s expansion into the materials business is based on its experience applying specialized materials to home appliance handles and surfaces, like on refrigerators, washing machines, and air conditioners. The company has also developed water-soluble glass that turns into mineral ions when dissolved in water.

“The market for functional materials is expected to reach 24 trillion won ($18.2 billion) this year. We’re equipped with production facilities for glass powder with an annual production capacity of 4,500 tons at our Smart Park factory in Changwon,” said the company.

LG Electronics has been known for its aggressive steps in terms of testing new ideas prior to any market formation, as seen in the case of its indoor plant cultivator and capsule beer maker. The company seems to be continuing such expansions to explore and cultivate new revenue streams, in addition to its traditional strengths.

By Choi Seung-jin and Chang Iou-chung

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