LG 1999 Annual Report Download - page 8

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Digital Technology Leadership
_We persevere in R&D activity energized by the strategy we call Technology Leadership 2005 (TL2005), which pursues yet-to-be-
invented core technologies in selected business fields. TL2005 is an important R&D mindset for us as we enter the global era of
digital technology.
_For years now TL2005 has inspired diverse technologies that are ranked top-of-the-line around the world. Our 64” digital TV,
40” and 60” PDPs, fully-flat TV, and HD-1 chip are among the world-winning outcomes of TL2005. As are our 19” FLATRON
color display tube (CDT), 22” wide LCD monitor, 48X CD-ROM drive, 8X CD-RW and DVD-ROM drive, and 3-way discharge air
conditioner.
_Backed by the TL2005 mindset, we are trying to enter preemptively into larger digital markets. To this end we will focus more
energy on digital TVs and PDPs this year. We will also upgrade the competitiveness of our electronic tubes, optical storage
devices, and air conditioners, which are already of good repute in the global market. TL2005 today steers us toward the
Internet, mobile communications, and other new-age products.
Globalization
_LG Electronics has 60 subsidiaries in 34 countries, covering marketing, logistics, and services. These overseas subsidiaries bring
in up to 80% of total LGE revenues. Our products are now recognized as top-quality in several dozen countries.
_In 1999 our sluggish US subsidiary Zenith got back into the normal by overall innovation. We reinforced the Super A initiative,
improved financial structure, and enhanced marketing activities in most of our overseas subsidiaries, which raised their
competitive edge.
_At the same time we carried out multi-cultural activities to implant a good LG brand identity. Hosting sport events was one
such activity. For instance, the LG Cup soccer games have become internationally known. The “LG Scholarship Quiz” for
outstanding high school students we broadcast in Vietnam, Thailand, Kazakstan, and Indonesia have impressed our smiley image
on many local viewers.
_Our cost-cutting and quality-upgrading movements will continue without a moment’s pause this year. Dedicated LG people are
trying to spin off brand-new and high-value varieties in the developing markets worldwide, with an eye especially on digital
markets. Our efforts to make inroads into the high-walled North America and Europe markets will be intensified.
_In China, Turkey, Poland, and other up-and-coming countries we are steadily diversifying marketing through sports and cultural
exchanges. To get closer to people around the world, good friendship is indeed a prerequisite, along with good quality
products. Therefore, we try to build good friendship through the sighs and cheers of sporting events, through which we can also
promote our corporate ethics.