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| Business Scope |
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| Area |
Research, development
and production of multimedia related products, display
products and core components |
| Location |
Korea |
| Pyeongtaek |
Osan |
| Cheongju |
Gumi1
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| Gumi2 |
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| Overseas |
| LGESY(Shenyang, China) |
LGEAI(Alabama, US) |
| LGENT(Nanjing, China) |
LGEWA(Wales, UK) |
| LGESH(Shanghai, China) |
LGERS(Reynosa, Mexico) |
| LGEHZ(Huizhou, China) |
LGEMX(Mexicali, Mexico) |
| LGEDI(Jakarta, Indonesia) |
LGEMA(Mlawa, Poland) |
| LGESV(Hanoi, Vietnam) |
LGEAK(Kazakhstan, CIS) |
| LGEIN(Jakarta, Indonesia) |
LGEEG(Ismalia, Egypt) |
| LGEMT (Bangkok, Thailand) |
LGEAZ(Amazonia, Brazil) |
| LGECM(Manila, Philippines) |
LGESP(San Paulo, Brazil) |
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| Performance
Overview |
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| Review |
Bucking the trend related to the
continued stagnation of the global IT industry, the Display
and Media Division enjoyed
excellent operating results in 2002, primarily attributable
to the 2002 World Cup finals that sparked immense demand
for home electronics. Sales advanced 17.2% year on year to 7.9
trillion won, with domestic sales jumping 18.1%,
while sales outside of Korea rose 16.9% as well. As a result,
the share of Digital Display & Media Division moved up
to 42.7% of total sales. Other factors contributing to its outstanding
sales performance included upgrades in the tech
nology and price competitiveness of various products, added
sophistication of business lines and the 6 Sigma activi
ties.
By sector, the Optical Storage business solidified its worldwide
leadership position through the release of highly-per
formance products, such as high-speed CD-RW and Combo Drive,
while enhancing the competitive advantages of
other products. The Digital TV business recorded equally impressive
sale results with Xcanvas; the Audio-Visual bus
iness with DVD COMBI; and the Home Theater business with DVD
Receiver.
Overall, new digital products registered robust sales growth
in 2002. In particular, demand for PDP units, a new busi
ness line, expanded substantially as a result of its proven
quality and cost-competitiveness, such that an additional
PDP production line is now in the works.
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| Outlook |
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Business conditions
for 2003 will likely remain turbulent, due to such factors
as the war in Iraq, oil price hikes, unfavorable exchange
rates and delayed recovery of the global IT Industry.
Simply put, the business environment is likely to worsen
in 2003, however, we will squarely face up to the challenges
to achieve our management targets.
Our efforts will be centered on the following three action
points:
First, efforts will be focused on bolstering our "product
leadership" in response to the ever-intensifying global
competition. This effort requires further improvement
in our cost structure and differentiation of product design
including harmonization of digital technology and analog
systems.
Second, continuous efforts to consolidate our "market
leadership" To this end, the Division will step up its
brand-enhancement activities in major markets, such as
China, Europe and North America. Furthermore, LGE will
place particular emphasis on the development of new business
models through a convergence of products, while striving
to level up the operational capabilities of affiliate
firms doing business in reign countries.
Third, our "operational excellence" will be maximized
through our "6 Sigma Plus" campaign that will supplement
the cost-saving 6 Sigma activities and upgrades in software
development capability and e-Transformation initiatives.
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