LG 2001 Annual Report Download - page 23

First, we will continue to
concentrate our resources
on developing future core
technologies, namely Digital
TV, PDP, OLED, and
IMT2000
LG Electronics Inc. The
43
rd Annual Report
2002 Strategy
To secure our position as Digital Global Leader, LG Electronics will adopt the following
R&D strategies for 2002:
First, we will continue to concentrate our resources on developing future core
technologies, namely Digital TV, PDP, OLED, and IMT2000. For these, we will allocate half
of our total R&D budget of about 1 trillion won. With positive prospects in the digital TV
market, thanks to the World Cup and gradual recovery in the consumer electronics
market, we will concentrate on developing high quality and differentiated products for
digital TV and PDP. In the IMT2000 field, we will be preparing for 3G deployment by
securing “in-time” development of our W-cdma system while developing multimedia-
capable mobile handsets.
Second, R&D resources will be used to maintain competitiveness in our number one
products such as air conditioners and optical storage units, converging “digital appliances”
and HD level optical storage technologies. In optical storage we will focus on developing
HD level storage along with blue laser, ASIC technology. At the same time, we will
develop new, highly differentiated products, while searching for new ways to minimize the
cost to consumers.
Third, seeing that home network market is become more and more visualized, we will
continue to develop new digital products that not only suits for such convergence but
leads such changes. .
Last, we will further strengthen functions of our overseas R&D centers and will
establish R&D centers in the areas where we find strategically important. For instance in
China where our entire strategy using it as base station for producing low-end product has
been changed. From this year, we will set up a R&D center for our “digital” electronics
including PDP and digital TV and bring up our Chinese production sites to the higher level.
Going Forward
T2005 Movement
We have developed an innovation activity called TL2005. It is a “movement to create
digital “R&D” activities in selective business and technology or it is designed to develop a
technology that directly leads to higher revenue and profitability by pre-positioning
ourselves at the door of new technology and its prosperity. We defined those areas to be
digital TV, PDP, and IMT2000 where we will implement our TL2005 movement..
Development of Growth Engines
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 will be our growth engines
for the future. Human resources are a major key to success and we will build a more
efficient and performance-based organization that that can provide a strong foundation for
future growth. With intelligent development of tomorrows growth engines we hope to
have the best R&D organization on the globe.
CTO Woo Hyun Paik
Message from CTO
T2005 is a “movement to
create digital “R&D”
activities in selective business
and technology directly
leads to higher revenue and
profitability