Unlocking the Future: LG Innotek’s Game-Changing Digital Key Technology

LG Innotek is ramping up its growth strategy with a cutting-edge digital key solution, positioning it as a cornerstone in achieving 1.5 trillion KRW (1.09 billion USD) in annual sales from automotive connectivity businesses by 2030.

The South Korean electronic components manufacturer unveiled this ambitious plan during a media briefing Tuesday at its headquarters in western Seoul, showcasing its latest breakthroughs in digital key technology.

“Our next-generation digital key solution represents a leap forward, built on LG Innotek’s proprietary wireless communication technology. It offers unparalleled value to our customers,” Yoo Byaeng-kuk, head of the company’s automotive components division, stated during the seminar.

“The 1.5 trillion KRW target isn’t pie in the sky. It’s firmly rooted in contracts we’ve already secured. Our goal is to become the global leader in digital key solutions by 2030.”

LG Innotek’s innovative digital key solution replaces conventional smart keys with a smartphone-based system, utilizing Bluetooth and near-field communication to unlock vehicle doors.

In 2024 alone, the company clinched deals for 14 vehicle models featuring an enhanced version with ultrawideband technology, which significantly reduces external interference between the key and the vehicle, bolstering security.

Looking to the future, LG Innotek aims to further refine its digital key with a high-precision 3D positioning algorithm and proprietary radar technology, with mass production slated for 2028.

The 3D algorithm slashes the margin of error from 20-30 centimeters in current models to a mere 10 centimeters. This enables pinpoint detection of the user’s location – whether inside or outside the vehicle, or near specific doors or the trunk, company officials explained.

Moreover, the radar system enhances safety by sending smartphone alerts in the event of external impacts or if a child is left unattended in the vehicle.

“Globally, only we and a couple of European firms have the capability to develop a digital key with 10-centimeter positioning accuracy,” said Nam Hyoung-ki, who heads LG Innotek’s connectivity development department.

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

LG Innotek’s increased focus on digital key technology comes as the global market is projected to surge from the current 600 billion KRW (450 million USD) to 3.3 trillion KRW (2.475 billion USD) by 2030.

While luxury vehicle segments already boast an adoption rate of around 70 percent, the company anticipates wider adoption across other segments, driven by the proliferation of car-sharing and leasing services that are fueling demand for keyless solutions.

With 83 percent of its first-quarter revenue of 4.98 trillion KRW (3.735 billion USD) derived from optical solutions, its traditional core business, LG Innotek is diversifying its portfolio to include automotive electronic components, positioning itself to capitalize on the impending autonomous vehicle revolution.