LG Electronics shares up 329% this year as robot, physical AI bets fuel South Korea's hottest stock theme

Robot stocks are emerging as the new dominant theme on South Korea's equity market, following earlier runs in AI and semiconductors. Large-cap companies with robotics exposure — including Hyundai Motor Group affiliates and LG Electronics — have surged this year, with LG Electronics posting the sharpest gains, more than quadrupling in share price. Expectations around Nvidia CEO Jensen Huang's visit to South Korea and potential physical AI partnerships have added further fuel to the rally.

According to Korea Exchange data, the four robot-sector bellwethers drawing the most attention — Hyundai Motor, Hyundai Mobis, Kia and LG Electronics — have risen an average of 155 percent this year.

LG Electronics led the group by a wide margin. Its share price climbed from 91,400 won at the start of the year to 392,500 won ($284) at Tuesday's close, a gain of 329 percent. An investor who bought shares in January would have seen their investment grow more than fourfold.

LG Electronics has traditionally been classified as a home-appliance stock, but expectations around robotics and physical AI have driven a sharp revaluation. The company has been expanding its commercial robot business — including its logistics robot, the CLOi CarryBot — and news that it plans to develop its own physical AI model based on Nvidia's humanoid reasoning model Isaac GR00T prompted the market to reassess its prospects.

Remarks by Huang added further momentum. After he expressed interest in South Korean robotics companies and raised the possibility of collaboration, market attention turned to LG Group's AI and robotics capabilities. Speculation about a potential meeting between LG Group Chairman Koo Kwang-mo and Huang intensified expectations that Nvidia's physical AI strategy and LG's robot business could find common ground.

Other large-cap robot plays also posted strong gains. Hyundai Motor rose 144 percent this year, while Hyundai Mobis and Kia advanced 105 percent and 40 percent, respectively. Hyundai Motor Group has been promoting Atlas, the humanoid robot developed by robotics subsidiary Boston Dynamics, while Hyundai Mobis has drawn attention on expectations it will supply related components.

Smaller robot stocks joined the rally as well. Doosan Robotics surged 107 percent from its level at the start of the year, while Rainbow Robotics and Robotis rose 54 percent and 50 percent, respectively.

Several robot-related catalysts are lined up for the second half of the year. Hyundai Motor plans to launch RMAC, its robot training project, in the third quarter, and Tesla has signaled it will unveil the third generation of its humanoid robot Optimus. The market is also watching a potential listing by Chinese humanoid robot maker Unitree.

However, analysts say the pace of actual commercialization will be the key variable after the recent sharp run-up. "After these events, the focus should be on whether robotics businesses take concrete shape," said Choi Geon, a researcher at Korea Investment & Securities. "Share prices will build upward momentum by testing the feasibility of industry-related events as they unfold."