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Annual Report 2001
LG Electronics Inc.

Table of contents

  • Page 1
    Annual Report 2001 LG Electronics Inc.

  • Page 2
    ... 3 Company Profile 4 Financial Highlights 5 Summarized Financial Statements 6 Organization 7 Employees 8 Message from CEO 14 Message from CFO 20 Message from CTO 28 Digital Appliance Company 32 Digital Display & Media Company 36 Mobile Handset Company 40 Telecommunication System Company 43 Financial...

  • Page 3
    ... PDP Mass Production line (Kumi) Launched LG.Philips Displays, the CRT Joint Venture Surpassed 10 million units in mobile handset sales Finalized Company Demerger in Extraordinary Shareholder°Ø s Meeting Introduced Korea°Ø s first internet refrigerator Successfully commercialized W-CDMA core...

  • Page 4
    ...2000 2001 7,312.8 6,876.4 5,906.0 7,872.5 7,327.7 Capex 1997 1998 1999 2000 2001 543.4 493.7 407.1 776.0 576.0 LG Electronics Inc. The 43rd Annual Report Capital 1997 1998 1999 2000 2001 1,527.5 1,833.6 3,186.3 4,007.6 4,265.2 R&D Investment 1997 1998 1999 2000 2001 434.8 427.3 419.3 705.7 758.8

  • Page 5
    ...,068 2,353,626 1,451,991 °„ 571,449 7,872,484 1,031,068 2,354,505 1,674,226 °„ 1,052,157 5,905,988 632,116 862,916 1,440,697 250,601 Total capital Total liabilities and capital 4,265,236 11,592,985 4,007,642 11,880,126 3,186,330 9,092,318 LG Electronics Inc. The 43rd Annual Report

  • Page 6
    ... Headquarter 6 CTO Electronics Engineering Digital Appliances Digital Display & Media Production Engineering Human Resources Domestic sales Mobile Handset Telecommunication System Holding Company, China Customer Service Digital Appliances ¦U Areas£∫ Research, development and production...

  • Page 7
    ... Appliance Company Head of Telecommunications and Mobile Handset Company Head of Digital Display & Media Company Head of I Telecommunication System Company Chief of LG Electronics Institute of Technology Chief Customer Service Officer Chief Manufacturing Technology Officer Chief Korean Sales Officer...

  • Page 8
    LG Electronics Inc. The 43rd Annual Report Message From CEO 8

  • Page 9
    ...global economic uncertainty. This company, closely related to the recently troubled IT industry, had a difficult year, with negative growth and an operating profit of 2.7%. Others / Unit : % 3 Sales by Region Asia Taking a regional look at sales in 2001, we saw a 25% increase in the Korean market...

  • Page 10
    ... of the CRT business. Restructuring The planned "demerger" is a LG Electronics Inc. The 43rd Annual Report giant step towards becoming even more competitive in global markets and building on the successes of 2001. Competing in the 21st century requires corporate flexibility, and in 2001 LGE made...

  • Page 11
    ...-management Future Star Market dominance by technology & brand power Digital TV OLED PDP IMT2000 System/ GSM Handset LG Electronics Inc. The 43rd Annual Report Business Investment Cash Cow Businesses CDMA Handset Air conditioner Refrigerator Monitor Optical storage CRT LCD Continuous market...

  • Page 12
    ... to innovation and quality LGE is not only developing digital In the burgeoning PDP and DTV industries LGE has already secured a leading global edge, and with our reputation for quality we stand to be the biggest beneficiary in emerging digital markets. LG Electronics Inc. The 43rd Annual Report

  • Page 13
    ... more clear company direction. We will hold a regular IR meetings and will present more thorough picture of where LGE is heading. I'm sure by doing this, we will be able to maximize shareholder's value. Thank your for your seamless support. CEO John Koo LG Electronics Inc. The 43rd Annual Report

  • Page 14
    LG Electronics Inc. The 43rd Annual Report Message From CFO 14

  • Page 15
    ...in the IT industry, Digital Display & Media, which accounts for 41% of our total sales, experienced severe pressure from our competitors. It also required serious restructuring, with Telecommunication System suffering from reduced CAPEX spending by major telecom operators. Digital Appliance, however...

  • Page 16
    ... 76.5 -97.4 72.8 2.6 Others Secondary Market Total Corporate bond (private) Corporate bond (public) Capital increase Primary Market Total Grand Total Overseas 2.8 4.7 LG Electronics Inc. The 43rd Annual Report 3.2 Funding (Overseas) 2001 Source 0.6 0.6 0.9 Unit : Billion KRW, % 2000 Balance...

  • Page 17
    ... there was no change in total paid-in capital. As of Dec 2001, we have 155,118,070 common shares and 19,095,547 preferred shares. The major shareholders are LGCI, CITIBANK, Korea National Pension Fund, Stock Market Stabilization Fund, Templeton, and Government of Singapore. The percentage of foreign...

  • Page 18
    ...increase R & D investment by 24%. Major CAPEX investment planned will include 38 billion won in PDP, 30.3 billion in Digital TV, and 47.7 billion won in Mobile Handset. Billion KRW, % Change YoY CAPEX 510 (-11.5%) LG Electronics Inc. The 43rd Annual Report R&D 940 (23.9%) Total 1,450 (8.6%) Debt...

  • Page 19
    ...the IT industry. In such a case, we would reduce IT related investments by a further 20% while employing harder methods of restructuring. We would also adopt a keener hedging policy, enabling us to react more flexibly to exchange rate risks. Going Forward LG Electronics will continue "cash-oriented...

  • Page 20
    LG Electronics Inc. The 43rd Annual Report Message From CTO 20

  • Page 21
    ... ushering in a new era of consumer electronics, led by PDP TV, LCD TV, DVD and DVD-ROM, wireless PDA, personal video recorders and internet refrigerators. In these advanced technologies LG Electronics is currently setting the global standard. Digital TV In the development of digital TV, LGE is proud...

  • Page 22
    ... 4.7 gigabyte DVD+RW and the first 32X CD-RW in Korea. Home Appliance LGE is the worlds first company to commercialize a linear compressor and the first in Korea to develop an Inverter SR Motor. These technologies make greater energy conservation possible for refrigerators and air conditioners. Our...

  • Page 23
    ... Development of Growth Engines LG Electronics Inc. The 43rd Annual Report R&D is what leads LGE to the forefront of the industry. I am certain that our continuing efforts to secure leadership in core technologies will translate into higher revenue and profits. Our home and mobile network businesses...

  • Page 24
    ... Display & Media Headquarter Digital Media(R) WLL Handset(R) China J/V(R) CEO Overseas(R) CTO Digital Display (R) Digital Media (R) Digital TV (R) Digital Appliance (R) Digital Design(R) LG Production Engineering LG Electronics Engineering Zenith R&D CDMA System(R) UMTS System (R) Triveni...

  • Page 25
    LG Electronics Inc. The 43rd Annual Report

  • Page 26

  • Page 27

  • Page 28
    LG Electronics Inc. The 43rd Annual Report Digital Appliance Compamy 28

  • Page 29
    ... the number one global market share and were named "product of the year" by Consumer Report magazine. LGE refrigerators finally surpassed the 1 trillion won mark in sales, with our Duo model being named a runner-up in "IDEA 2001" in the U.S. Our air conditioners, refrigerators and washing machines...

  • Page 30
    ... success in air conditioner business Jun Jul 3rd Quarter Sales : 1.08 trillion KRW - Slow season for air conditioner business - Increase in Kimchi refrigerator & cooking appliance sales - Achieved number one market share in Kimchi refrigerator Sep Aug LG Electronics Inc. The 43rd Annual Report...

  • Page 31
    LG Electronics Inc. The 43rd Annual Report

  • Page 32
    LG Electronics Inc. The 43rd Annual Report Digital Display & Media Compamy 32

  • Page 33
    ...Storage). In the TV and audio-visual business we have improved sales and profitability through more efficient management of global production lines as well as the introduction of several highly competitive new products. Despite market shrinkage in the PC business, our proven quality helped us secure...

  • Page 34
    ... MP3 player Released fusion type of mini audio set & DVD product Achieved the °∞ Best Buy Award°± professional magazine Developed Korea°Ø s first OLED for car audio Developed new concept slim type projection TV (DLP) from AV LG Electronics Inc. The 43rd Annual Report Produced world...

  • Page 35
    LG Electronics Inc. The 43rd Annual Report

  • Page 36
    LG Electronics Inc. The 43rd Annual Report Mobile Handset Compamy 36

  • Page 37
    ... venture with Langchao, helping us take advantage of new opportunities in the emerging Chinese CDMA market. Despite our late entry into GSM technologies our newly launched GSM handset business successfully penetrated markets in most of the GSM-based countries in Europe and Southeast Asia as well as...

  • Page 38
    ... Verizon, Sprint and Latin America - Successfully reached 12% OP margin in CDMA business Jun Jul Released stalking-free cdma2000 1X phone Released micro-sized GSM handset with upgraded game capability LG Electronics Inc. The 43rd Business Report LG Electronics Inc. The 43rd Annual Report Aug Oct...

  • Page 39
    LG Electronics Inc. The 43rd Annual Report

  • Page 40
    LG Electronics Inc. The 43rd Annual Report Telecommunication System Compamy 40

  • Page 41
    ... industry in Korea will provide a base from which to become world players. Considering the risks and opportunities that 2002 holds, we plan to reach our goals by implementing the following strategies: First, following the Korean governments willingness to help CDMA system providers take on global...

  • Page 42
    ... of CDMA WLL system in India Developed Korea°Ø s first BST system Developed Korea°Ø s first W-CDMA system LG Electronics Inc. The 43rd Annual Report Sales : 0.30 trillion KRW - Decrease in sales & profit due to delay in investment by domestic telecom operator 4th Quarter Sales : 0.45 trillion...

  • Page 43
    ... Report 2001 Report of Independent Accountants - 44 Non-Consolidated Balance Sheets - 46 Non-Consolidated Income Statements - 48 Non-Consolidated Statements of Appropriations of Retained Earnings - 50 Non-Consolidated Statements of Cash Flows - 51 Notes to Financial Statements - 53 Other Information...

  • Page 44
    SAMIL ACCOUNTING CORPORATION Kukje Center Building 21st Flr. 191 Hangangro 2ga, Yongsanku, Seoul 140-702, KOREA(Yongsan P.O Box 266, 140-600) Report of Independent Accountants To the Board of Directors and Shareholders of LG Electronics Inc. 44 We have audited the accompanying non-consolidated ...

  • Page 45
    ... countries and jurisdictions. Accordingly, this report and the accompanying financial statements are not intended for use by those who are not informed about Korean accounting principles or auditing standards and their application in practice. LG Electronics Inc. The 43rd Annual Report Seoul, Korea...

  • Page 46
    ... (Notes 4 and 5) Advances (Note 4) Other current assets (Note 4) Total current assets Property, plant and equipment, less accumulated depreciation (Notes 8 and 12) Long-term financial instruments (Note 3) Investments (Note 7) Refundable deposits (Note 5) Long-term trade accounts receivable (Note...

  • Page 47
    ...other accounts payable (Note 11) Accrued severance benefits, net (Note 13) Product warranty provision Other long-term liabilities Total liabilities Commitments and contingencies (Note 14) Shareholders' Equity : Capital stock (Note 15) Capital surplus : Additional paid-in capital Gain on merger (Note...

  • Page 48
    ... Non-operating income : Interest income Dividends income Foreign exchange gains Gain on disposal of property, plant and equipment Gain on disposal of investments (Note 7) Equity in earnings of affiliates, net (Note 7) Royalty income Gain on business transfer (Note 26) Gain on valuation of security...

  • Page 49
    ...- Basic ordinary income per share - Basic earnings per share - Diluted ordinary income per share - Diluted earnings per share 3,527 3,527 3,527 3,527 2000 4,430 4,431 4,367 4,368 The accompanying notes are an integral part of these financial statements. LG Electronics Inc. The 43rd Annual Report

  • Page 50
    ... retained earnings (Note 17) : Legal reserve Reserve for business rationalization Reserve for technological development Reserve for redemption of redeemable preferred stock Redemption of redeemable preferred stock Loss from disposal of treasury stock Cash dividends (Note 21) 544,000 104,704 138,891...

  • Page 51
    ...)in deferred income tax assets Increase in trade accounts and notes payable Increase in other accounts payable Increase in accrued expenses Increase (decrease)in advances from customers Increase (decrease)in income taxes payable Decrease in withholdings Payment of severance benefits Decrease in...

  • Page 52
    ... funds Decrease in long-term other accounts receivable Decrease (increase)in refundable deposits Decrease (increase)in long-term financial instruments Increase in severance insurance deposits Acquisition of investments Acquisition of property, plant and equipment Acquisition of intangible assets...

  • Page 53
    ... of Korea to manufacture and sell electronic products. The Company is a member of the LG Group, which comprises affiliated companies under common management direction. In 1970, the Company offered its shares for public ownership. As of December 31, 2001, the Company has outstanding capital stock of...

  • Page 54
    ...in fair value are recorded in current operations for marketable securities and accounted for in the capital adjustment account, a component of shareholders equity, for investments in marketable equity securities. Investments in non-marketable equity securities of non-controlled investees are carried...

  • Page 55
    ... identification method. Property, Plant and Equipment Property, plant and equipment are recorded at cost except for upward revaluation in accordance with the Korean Asset Revaluation Law. Such revaluation presents land at the prevailing market price and buildings and other production facilities at...

  • Page 56
    ... with the Company, based on their length of service and rate LG Electronics Inc. The 43rd Annual Report of pay at the time of termination. Accrued severance benefits represent the amount which would be payable assuming all eligible employees and directors were to terminate their employment as of...

  • Page 57
    ... the portion of the hedge that is not effective. For the portions of cash flow hedges which are effective, unrealized gains or losses are accounted for in the capital adjustment account and recorded in operations in the period when underlying transactions LG Electronics Inc. The 43rd Annual Report

  • Page 58
    ... value Net carrying value Original amount 2000 Allowance for Discounts for doubtful present accounts value Net carrying value Maturities of certain trade accounts and notes receivable from customers which are suffering financial LG Electronics Inc. The 43rd Annual Report difficulties and are in...

  • Page 59
    ... receivable, sold at discount to financial institution with recourse, from Hynix Semiconductor Inc. (formerly, Hyundai Electronics Industries Co., Ltd.) in relation to the Company s share transfer of LG Semicon Co., Ltd. in 1999 is 102,212 million. 5. Assets and Liabilities Denominated in Foreign...

  • Page 60
    ...) 40,625 1,429 42,054 Other accounts receivable USD ITL FRF Others 6 4 7,428 680 3 8,111 Refundable deposits JPY USD Others 58 2 582 2,313 2 2,897 Long-term loans Trade accounts payable USD USD JPY DEM ITL EUR Others ... 41,684 5,902 638 1,145 £Ü 49,369 60 LG Electronics Inc. The 43rd Annual Report

  • Page 61
    ... Net asset value Carrying value Acquisition cost Equity method of accounting Domestic Companies LG Construction Co., Ltd. LG Micron Ltd. LG Department Store Co., Ltd. LG Industrial Systems Co., Ltd. LG International Corp. LG Sports Ltd. LG Mart Co., Ltd. LG Innotek Co., Ltd. LG Cable Ltd. LG Card...

  • Page 62
    ...62 LG-Caltex Oil Corp. LG CNS Inc. (formerly, LG-EDS Systems Inc.) LG. Philips LCD Co., Ltd. LG IBM PC Co., Ltd. Dacom Corporation Hankuk Electric Glass Co., Ltd. LG N-Sys Inc. Overseas Companies Goldstar Electronics Tailand Co., Ltd. (G.S.T.) (*2) Hitachi/LG Data Storage Inc. (HLDS) LG Electronics...

  • Page 63
    ... (LGEUR) (*2) 100.00 LG Electronics U.S.A., Inc. (LGEUS) LG Electronics Wales Ltd. (LGEWA) Langchao LG(Yantai) Digital Mobile Technology Research & Development Co., Ltd. (LGEYT)(*2) LG Soft India PVT, Ltd. (LGSI) (*2) EIC Properties PTE., Ltd. Zenith Electronics Corporation (Zenith) (*1) 49.00 88.00...

  • Page 64
    ...Vietnam Korea Exchange, Ltd.(VKX) LG Tops (*2) LG Electronics System India, Ltd. (LGSYS) (formerly, Escorts Communication Ltd.)(*2) Electromagnetica Goldstar S.R.L.(*2) LG Telecom Corp. (*2) SLD TELECOM Pte. Ltd. (*2) LG.Philips Displays Holding B.V. LG(Yantai) Information & Communication Technology...

  • Page 65
    ... equity method of accounting is applied based on most recent unaudited financial statements of subsidiaries and affiliates. Net book values of non-marketable equity securities are recorded based on most recent unaudited financial statements. LG Electronics Inc. The 43rd Annual Report 7,000 million...

  • Page 66
    ... the Korea stock market stabilization fund, of which the differences between the market value and the acquisition cost are charged to current operations, the differences between the market value and the acquisition cost of the investments in marketable equity securities are accounted for as capital...

  • Page 67
    ...up to approximately 5,059,245 million. LG Electronics Inc. The 43rd Annual Report 639,124 million and A substantial portion of property, plant and equipment as of December 31, 2001 and 2000 is pledged as collateral for various loans from banks, including Korea Development Bank, up to a maximum Won...

  • Page 68
    ... of Won 2001 Capitalized Expensed 119,086 471,658 590,744 2000 76,836 295,776 372,612 As a result of the merger with LG Information & Communications, Ltd., the Company recognized goodwill of 393,820 million and acquired industrial property rights of 578,788 million. Related 39,382 million and...

  • Page 69
    ...- ) Exchangeable Bond Foreign currency, issued in 1997 (*3) 0.25 73,824 (US$ 56) 3,767,112 Less : treasury debentures current maturities discount on debentures premium on debentures (-) (1,291,892) (53,758) 2,421,462 66,623 (US$ 75) 3,303,613 (17,171) LG Electronics Inc. The 43rd Annual Report 2001...

  • Page 70
    ...to Financial Statements for the years ended December 31, 2001 and 2000 In Millions Annual Interest Rates (%) as of December 31, 2001 Won currency loans 2001 2000 70 Kookmin Bank Korea Development Bank Hana Bank Hanvit Bank Korea Technology Banking Corporation Korea Development Capital Corporation...

  • Page 71
    ... purchase for the Bundang research center and was repaid out in 2001. Long-term other accounts payable as of December 31, 2001 includes relation to the option premium of treasury stock sales. See Notes 3 and 8 for the related collateral arrangements for the Company s long-term debt. The maturities...

  • Page 72
    ... was related depreciation expense recognized in 2001 was 77 million. 385 million and As of December 31, 2001, future minimum lease payments under capital lease obligations are as follows : Year ending December 31, 2002 2003 Millions of Won 172 116 288 LG Electronics Inc. The 43rd Annual Report

  • Page 73
    ... funded under employees severance insurance plans (severance insurance deposits) is presented as deduction from accrued severance benefits. 14. Commitments and Contingencies: On December 31, 2001, the Company provided several notes and checks to financial institutions as collateral in relation...

  • Page 74
    ... various banks for the repayment of (1) Contract with CSFB Treasury stock sales Trade date: December 21, 2000 Number of shares: 11,000,000 shares of common stock LG Electronics Inc. The 43rd Annual Report Sales price: the closing trade price on the trade date per share ( 12,400 per share) Price...

  • Page 75
    ... sales price was adjusted to the weighted average trade price during the initial valuation period determined based on BOA s executions. As a result, the Company incurred a loss on transaction of derivatives amounting to 25,267 million. LG Electronics Inc. The 43rd Annual Report Call option contract...

  • Page 76
    ...trade price during the initial valuation period determined based on CSFB s executions. As a result, the Company incurred a gain on transaction of derivatives amounting to million. LG Electronics Inc. The 43rd Annual Report 17,750 per share) 212 Call option contract Call option buyer : the Company...

  • Page 77
    ...2,532 million was recorded as a capital adjustment. A summary of the LG Electronics Inc. The 43rd Annual Report terms of outstanding interest rate swap contracts at December 31, 2001 is as follows (see Note 18) : Amount (In millions) ABN AMRO Bank US$ 70 Buying rate (%) 7.35% Selling rate (%) 6M...

  • Page 78
    ... deposits for million. LG Electronics Inc. The 43rd Annual Report As of December 31, 2001, the Company has and 13,700 million of subordinated bond issued by the SPC 3,300 million of long-term loan due from the SPC. The Company provides management services related to the leasehold deposits...

  • Page 79
    ... of number of employees and disposal of production lines, and changed to become a research & development and marketing company instead of a manufacturing company. The Company s management expects that royalty income to be incurred from VSB technology patents for digital TV owned by Zenith will...

  • Page 80
    ...with the Korean Asset Revaluation Law and obtained relevant governmental approval. As of December 31, 2001, the revaluation increments of 339,619 million, net of tax, transfer to capital stock and offset against deferred foreign currency LG Electronics Inc. The 43rd Annual Report translation losses...

  • Page 81
    ...gain from the disposal of property, plant and equipment after deducting related taxes, until equity equals 30% of total assets. This reserve is not available for dividends, but may be transferred to capital stock through an appropriate resolution by the Company s board of directors or used to reduce...

  • Page 82
    ... option executed by shareholders who objected to the merger with LG Information & Communications, Ltd. As of December 31, 2001, the Company retains treasury stocks amounting to 17,126,361 shares of common stock and 16 shares of preferred stock. The Company has intention to sell the treasury stock in...

  • Page 83
    ... from sales of receivables The equity method of accounting Bad debt expenses Product warranty provision Other Deferred tax assets Deferred tax liabilities Amortization of intangible assets Gain on valuation of investments Custom duty drawback Reserve for technological development Other Deferred tax...

  • Page 84
    ... to common stock LG Electronics Inc. The 43rd Annual Report 2000 482,711 2,070 1,006 485,787 111,224,159 4,368 471,885 471,885 Add : Interest expenses on convertible bonds, net of tax Redeemable preferred stock dividends Weighted average number of common shares and diluted securities outstanding...

  • Page 85
    ... Ratio In Won 2001 Common shares Dividend per share (A) Market price as of balance sheet date (B) Dividend yield ratio ((A)/(B)) 24,800 3.02% 12,600 6.35% 11,950 8.37% 6,310 16.64% 750 Preferred shares 800 Common shares 1,000 2000 Preferred shares 1,000 LG Electronics Inc. The 43rd Annual Report

  • Page 86
    ... manufactures and sells are as follows : Digital Display & Media division : VCR, PC, computer, CD-ROM, TV, monitor, audio and PDP Digital Appliances division : refrigerator, washing machine, air conditioner, microwave oven and vacuum cleaner LG Electronics Inc. The 43rd Annual Report Display Device...

  • Page 87
    ... America 3,899,403 23.5% 3,899,403 Central & South Europe & America 701,924 4.2% 701,924 CIS 1,932,931 11.6% 1,932,931 Central Asia 766,068 4.6% 766,068 Asia 2,866,953 17.3% 2,866,953 Oceania 250,913 1.5% 250,913 Supporting division 98,797 0.6% 98,797 LG Electronics Inc. The 43rd Annual Report

  • Page 88
    ... 8, 2000 and subsequent approval by shareholders on July 22, 2000. LGIC was incorporated to manufacture and sell electronic switching systems, transmission equipment, network equipment, mobile telecommunication systems, and mobile phones. The Company owned 8,374,357 shares of LGIC (27.10%) at the...

  • Page 89
    ... related statements of income are as follows (Millions of Won) : Condensed balance sheets - As of August 31, 2000 Current assets Investment Property, plant and equipment Intangible assets Total assets Current liablities Non-current liabilities Total liabilities Shareholders equity Total liabilities...

  • Page 90
    ... the CRT business for the first half period of 2001 is as follows : Millions of Won Sales Operating profit 938,060 121,407 The price is subject to adjustment based on determination of assets and liabilities contributed and transferred to the joint venture. LG Electronics Inc. The 43rd Annual Report

  • Page 91
    ... in the operation of investment in subsidiaries and affiliates which are not related to the spun off businesses and a divested company, tentatively named LG Electronics Inc., to engage in the electronics and information & communications businesses. Condensed financial information as of September...

  • Page 92
    ...production Refrigerator Microwave oven Digital Appliance RE compressor Air conditioner Laundry washer Vacuum cleaner RO compressor Kimhae Kumi Kumi Kimhae, Kyungnam Kumi, Kyungbuk Kumi, Kyungbuk Household motor MGT Monitor TV PDP Digital Display & Media Pyungtaek Pyungtaek, Kyunggi VCR PC CD-ROM/DVD...

  • Page 93
    ... LGEAZ Production/ Sales TV VCR/DVD Microwave oven Air conditioner Mexico Monterrey Brazil San Paulo LGESP LGEMM Production/ Sales Production/ Sales Monitor Cellular WLL England New Castle Europe England Wales Romania Bucharest Poland Mlawa Egypt Ismalia M. Asia Turkey Istanbul India New Delhi LGEIL...

  • Page 94
    ....12 LGETA Production Sales Microwave oven Air conditioner Motor Vacuum cleaner RO compressor 3,000 1,200 6,000 1,000 1,700 300 U$ 72,980 LGE 80% TRIC 20% 95.08 China Guangzhou China Yantai LG Electronics Inc. The 43rd Annual Report LGTOPS Production Sales CDMA-WLL U$ 6,000 LGE 40% GPTE...

  • Page 95
    Oversea Subsidiaries Overseas Sales and Other Functions Location Canada Toronto America U.S. New Jersey U.S. New Jersey U.S. Chicago U.S. San Diago Mexico Mexico city Argentina Buenos Aires Panama Panama Columbia Bogota Peru Lima England London Europe Ireland Dublin France Paris Spain Madrid ...

  • Page 96
    ... Casablanca U.A.E. Dubai U.A.E. Dubai Egypt Cairo India Bangalow Asia Singapore Kepel China Beijing China Hong Kong Japan Tokyo Malasia Kuala Lumpur Japan Tokyo Taiwan Taipai China Shandong Corporate name LGESA Type Sales Capital(1000) RAND 18,500 (U$ 4,000) Invest type 100% Established 96.10...

  • Page 97
    ...-12 2003-05-11 2006-05-31 2004-06-25 2003-08-28 2006-09-12 20 Nation debt 3 years+0.4 20 20 U$100,000 5.00 Total Foreign currency Won currency U$496,000 3,135 U$476,670 3,135 LG Electronics Inc. The 43rd Annual Report

  • Page 98
    ...year From January 1st to January 31st Donga Ilbo, Chosun Ilbo 1, 5, 10, 50, 100, 500, 1000, 10000 shares (8 types) Korea Security Depository(T.02-3772-9000) Location 33 Youido-dong, Yeongdeungpo-ku, Seoul LG Electronics Investors Relations 82-2-3777-3440 LG Electronics Inc. The 43rd Annual Report

  • Page 99
    LG Electronics Inc. http://www.lge.com