LG Innotek, a member of the LG Group, unveiled its vision during a seminar at its headquarters west of Seoul on 15/7, according to the Korea Herald. At the event, the company showcased its latest advancements in digital car key technology.

"The 1.5 trillion won target is not just wishful thinking. It's built on orders we've already secured. We aim to become the world's leading digital car key solution provider by 2030," said Yoo Byaeng-kuk, head of the company's automotive components business unit.

LG Innotek's next-generation digital key solution module with improved accuracy and radar-based safety features. Photo: LG Innotek

LG Innotek's next-generation digital key solution module with improved accuracy and radar-based safety features. Photo: LG Innotek

LG Innotek's digital key solution replaces traditional smart keys with a smartphone-based system, using Bluetooth and near-field communication (NFC) to unlock car doors. NFC allows devices to communicate within a few centimeters.

In 2024 alone, the company has received orders for 14 upgraded car models featuring ultra-wideband technology, which minimizes external interference between the key and the vehicle, enhancing security.

In the future, LG Innotek plans to further enhance its digital key with a highly accurate 3D positioning algorithm and proprietary radar technology, aiming for mass production by 2028.

The 3D algorithm reduces the 20-30 cm margin of error in current products to just 10 cm. The company says this algorithm allows for precise detection of whether the user is inside or outside the car, near the doors or the trunk.

Additionally, the radar system enhances safety by sending alerts to smartphones in case of external collisions or children left inside the car.

"Only we and one or two companies in Europe are capable of developing digital keys that can identify locations within a 10 cm range," said Nam Hyoung-ki, head of LG Innotek's connectivity development division.

Nam added that the company is working to expand digital key modules to support automatic parking, leveraging its high accuracy to replace multiple complex components currently performing separate functions.

LG Innotek's strong focus on digital key technology comes as the global market is projected to grow from 600 billion won currently to 3.3 trillion won by 2030.

While the luxury car segment shows an adoption rate of about 70%, the company expects wider adoption in other segments, driven by the expansion of car sharing and rental services, increasing the demand for keyless solutions.

With 83% of its first-quarter sales, equivalent to 4.98 trillion won, coming from optical solutions, its traditional core business, the company is expanding its portfolio into automotive electronics to capitalize on the expected boom in self-driving cars.

My Anh