LG 2002 Annual Report Download - page 10

LG Electronics Inc. IAnnual Report 2002 I16 17
> Optical Storage
Armed with the development and commercialization of 48-speed Combo Drive and DVD±±RW Drive
and technology for an innovative DVD recorder (digital versatile disc recorder), LGE has distinguished
itself as the frontrunner in the global optical storage market. Of particulate note, the development of a
multi-write DVD Drive, which can accommodate record and playback functions based on DVD Ram and
DVD±RW format, enabled the company to secure global leadership in DVD recording technology.
Driven by its Blue Laser technology, LGE created VDR working samples that can record and playback
HD-grade programming of more than two hours, which were presented at the 2003 International CES.
Also included in the new developments was patented standards for Blue-day Disc (BD) and next-
generation optical recording.
> Digital A/V
LGE retained its market leadership in the Digital A/V sector through the development and release of a
range of multifunctional products, including HDD/DVD Combi, DVD recorder, and Home Theater
systems. The development of high-performance core components, such as DSP (digital signal
processing) IC, enabled LGE to noticeably strengthen its product leadership in the digital audio/visual
sector.
> Home Appliance
To join the “ Global Top 3” in the household appliance sector, LGE is committing its resources to the
development of premium products on the strength of its core competence. In the room air conditioner
sector, in which LGE maintains the No. 1 market share globally, the company created a multi-unit air
conditioner for buildings that can control the temperature of air of 16 rooms simultaneously. LGE also
became the world’s first to operate an independent multi-unit air conditioner lab at one of its R&D
centers.
Furthermore, our drive to lead the digital revolution has resulted in development of a diverse range of
state-of-the-art home appliances, such as the DIOS refrigerator equipped with the cutting-edge linear
compressor; next-generation refrigerator “ 1124 Kimchi;” the world’s largest turbo-drum washing
machine TROMM; high-performance vacuum cleaner without a dust bag Cyking; and a light oven. In
addition, the company is intensifying efforts to beef up the competitiveness of its leading-edge
components, including linear, scroll and SR motor compressors, while promoting the reliability and
differentiation of these products. Overall, LGE remains fully committed to enhancing its brand image
through its Home Network product lineup.
> Home Network
Noteworthy achievements in the Home Network area included the development of cutting-edge
products, such as an Internet-enabled refrigerator, Kimchi refrigerator, washing machine, microwave
oven, air conditioner and gas oven, which have enabled LGE to lead the way in this fast-emerging
market. In particular, the company is expanding its market presence in the home network sector
through rapid development of Home Network-linked audio/visual products that feature a wide range of
multimedia solutions, including digital TV.
Furthermore, efforts will be focused on the development of new products and services in such areas as
home digital services, mobile home network solutions and home automation-enabled innovations in
partnership with telecommunications service operators and companies specializing in home automation.
Meanwhile, LGE is playing a leading role in the development of technology standards for next-
generation Home Networking products as evidenced by our independent development of the LnCP
(Living Network Control Protocol). Other notable developments in this sector involved creation of the
protocols for A/V & Data Network and Control Network that support UPnP, HAVi and Echonet.
Plans for 2003 and Beyond
To attain our goal of “ No. 1 LG,” we will emphasize the following R&D activities to ensure the timely
development of innovative products for our primary and strategic business areas and new technological
applications.
First, we will commit available resources to the development of “ No. 1” products, while beefing up our
core technological capability under a “ selection and concentration” initiative. In 2003, up to 75% of
our R&D investment will be channeled into the company’s strategic and market-leading core businesses.
Of special note, LGE will focus its R&D resources on upgrading the product competitiveness of mobile
phones this year, while introducing a top-of-the-line handset for IMT-2000 service to the market in a
timely manner. We also are determined to go an extra mile for creation of cutting-edge PDA phones,
high-end phones and other mobile handsets, which will feature wireless Internet and multimedia
solutions. These innovations will enable us to build a solid platform to position ourselves as Korea’s
premier mobile handset maker.
As for our digital TV and PDP businesses, we will further expand our product offerings while being
committed to development of advanced components such as the ASIC chip set in order to dramatically
enhance the video quality of these products.
Second, the company will become more aggressive in its efforts to fortify its product leadership and
strengthen its R&D activities on new products with high-growth potential in the home appliance, digital
A/V, and optical storage areas. Efforts in the home appliance sector will be focused on the creation of
products with higher value-added, including a commercial air conditioner and new side-by-side
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