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Oct. 29, 2003
LG Electronics Vice Chairman S.S.Kim rallies three core tasks that will put LGE in the global top three by 2010
Vice Chairman, S.S.Kim
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- Held his first press conference after taking office as vice chairman
- Announced three core tasks that will place LGE in the top spot, foster promising businesses, and reinforce profit-oriented mindsets
- Building the LG premium brand through product leadership and differentiated marketing
- Aiming for a proactive labor-management relationship, intensive innovation, and building "great company" and "great people"
Seoul, Korea, October 28, 2003 - LG Electronics (LGE) has taken a bold step towards the goal of becoming part of the global top three in the electronics and information communications industries by 2010.
LGE (Vice Chairman and CEO S.S.Kim / www.lge.com) Vice Chairman S.S.Kim held his first press conference right after taking office as CEO, at the LG Twin Towers on October 28. In the conference, he disclosed his long-term visions and core tasks.
Taking the Global Top 3 by 2010
According to Vice Chairman S.S.Kim, he aims to accomplish mid- and long-term visions by pursuing three core objectives: putting LG the top spot in winning core businesses; fostering promising businesses for the long term and reinforcing profit-oriented mindsets to secure growth foundation.
The new CEO added that, "LCD, mobile terminals, DTV and PDP, are growth engines for winning new businesses for the company." He also said that LGE is planning to put timely investments in these businesses and secure their core capability in order to maximize profit creation. "We will likewise focus on the key businesses of appliances and optical storage on premium products, and conduct profits-first management," he added.
On the other hand, CEO S.S.Kim announced that the company is poised to continue conducting systematic reviews of areas such as home networks, digital multimedia broadcasting (DMB) terminals, next-generation vehicle systems (telematics, navigation), organic EL and optical devices. This is in line with LGE's plan to explore high-growth and value-added businesses.
To achieve its core tasks, LGE is pushing for intensive investments in R&D, securing core capabilities, and continuing the 6 sigma management through the tear-down and redesign approach (TDR). The company is likewise aiming to reinforce profitable management by boosting cost competitiveness and expanding overseas production bases.
Aided by product leadership, LGE seeks to maintain a win-win relationship with global businesses and achieve mutual development in R&D and marketing.
LGE established its mid- and long-term objectives in 2002 as it disclosed its objective of reaching the global top three by 2010.
Building LG as a premium brand
CEO S.S.Kim stated that, "With product leadership and differentiated marketing, we will foster LGE as a premium brand."
LGE seeks to intensively build brands that are focused on mobile terminals, DTV, premium appliances and other winning core products in export markets.
The company will likewise continue the development of XCANVAS, DIOS, TROMM, and WHISEN, as representative brands in the domestic market.
LGE is also working hard to conduct major trading lines in affiliated marketing campaigns to reinforce brand management and the operations system. The end result being aimed for is boosting company-wide brand management.
In growth markets such as Asia and Africa, LGE conducts region-specific marketing campaigns like the LG Cup Football Championship, medical services, the LG scholarship quiz events, and other similar events in order to reinforce LG brand recognition.
On the other hand, in advanced markets such as North America and Europe, LGE is set to reinforce the product line-up of DTV, PDP, sophisticated mobile phones and other premium products. The company will also employ marketing efforts that are oriented towards sports and culture.
This year, LGE is launching marketing activities in full-swing in North America, like the Fremont Street Experience (FSE) multimedia show in Las Vegas, sponsorships for the Wiltern Theatre in Los Angeles, and other super-large advertising campaigns.
The FSE multimedia show, the world???s best image multimedia show, makes use of a 400-meter dome style that showcases the LGE logo and product unveiling sessions.
This event is expected to give the company over 10 billion won worth of publicity per year. Its five-year sponsorship for Wiltern LG theatre, a U.S. cultural legacy, features a display of products and demonstrations within the theatre.
Business Strategies for 2004
Vice Chairman S.S.Kim noted next year???s economic prospects and business strategies, saying that "A global economic recovery will likely be slow, but the domestic market will unfold this year. LGE will exert efforts to expand and export premium products, and thus enhance profitability."
Regarding its display business, LGE plans to intensively invest in its core capability in digital TV, PDP, LCD, organic EL and other next-generation display products in order to boost market leadership.
On the appliances business, LGE is poised to foray into the global market by making its premium products. The company is pushing to occupy the home network market and consolidate the profit base. This is still part of the company???s objective of occupying the Global Top 3 by 2004.
On its mobile terminals business, the company seeks to unveil sophisticated mobile phones that are equipped with innovative functions and refined designs at the right time and thus consolidate its grip on the CDMA handset market. It also aims to boost its global competitiveness in GSM handsets this way. In addition, LGE is set to reinforce strategic alliances with global telecommunication operators, aggressively explore new trading lines, and boost profitability in the 3G business in the early stages of its market penetration. The company is aiming for fourth place in the globalmobile phone market by 2004.
Being 'first-class LG'
Vice Chairman S.S.Kim announced that, to achieve the objective of being in the global top 3 by 2010, "we will embrace productive labor-management relations, speed up innovation, and encompass the bywords of 'great company' and 'great people.'
Towards this end, we are exerting every effort to translate our plans into action and cope with the changing environments."
In Korea, LGE is the first major company to introduce the 6 sigma innovation management campaign. The company has actively pushed for management innovation on the production field, and has conducted innovation activities successfully by using tools like the tear-down and resign approach (TDR) and the digital manufacturing system (DMS).
Vice Chairman S.S.Kim also said, "Rather than being satisfied with past achievements, we should face the future with innovation. We need to drive innovation activities further in order to become a 'great company.'"
Fostering the "Right People"
According to Vice Chairman S.S.Kim fostering the "right people" is necessary in order to make a great company. He said that instead of having the "best people," "We need the'right people' who will be passionate in their work, have high objectives, and will enjoy change and innovation."
He further elaborated that the "right people" are those who " embrace their respective unique local cultures as the best value; and those who do their utmost in exploring business opportunities despite bad business conditions when they are dispatched overseas."
New CEO and Vice Chairman S.S.Kim
The new LGE CEO, Vice Chairman S.S.Kim has been engaged in the division of digital appliances in the past 35 years since he entered LGE. He has witnessed the growth of the company, and is known for his strong leadership and drive in being a reformative entrepreneur.
CEO S.S.Kim is a field-focused businessman who has spearheaded 6-sigma campaigns and knowledge management across the company. He has also led LGE into front running innovation activities. His fine character and open-mindedness is part of the charm that makes him very accessible and approachable among his staff.
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