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LG Electronics Inc. IAnnual Report 2002 I06 07
> Performance Overview
Before discussing LG Electronics’ business results for fiscal 2002, I would like take this opportunity to
express my deepest appreciation to our shareholders for their unwavering support and encouragement,
which enabled the company to post another year of steady growth.
Despite a challenging business environment, 2002 was truly a year of solid achievements for us. Global
economic uncertainties grew amid the prolonged U.S. economic slowdown and concerns over the
possibility of war in Iraq. Undaunted, our employees once again displayed a spirit of drive and
determination, giving the company its best-ever performance.
Of special note, the demerger of LG Electronics into a holding company and an operating company,
effective as of April 1, 2002, will go down in the company’s annals as a historic turning point. LG
Electronics can now move on to greater heights, freed from the burden of investment in subsidiaries.
This move will also serve to maximize shareholder value through fostering “ accountable management
by experienced managers.”
Furthermore, the recent reorganization of LG Electronics gives new impetus to management
transparency. Completely exempted from investment requirements for related companies, LG
Electronics’ management transparency now meets global standards. Over the longer term, this also will
benefit efforts to maximize profitability.
Building on this initiative, LG Electronics achieved sales of 18.6 trillion won in 2002, an upswing of
12% as compared to the previous year, with net income reaching 497.6 billion won. Growth in the
CDMA handset business was exceptional, with the number of mobile phones sold rising 35% in 2002
over the previous year. The GSM handset business, which commenced operations only in 2001, also
showed an incredible 10-fold growth year on year. Overall, the Mobile Handset business grew
exponentially, pushing LG Electronics to sixth place in 2002 in terms of number of mobile phones sold,
advancing from tenth in 2001.
Based on its recognized strengths in the Infor mation & Tele-
communications, Display and Home Appliance sector s, LG Electr onics is
moving ahead toward achieving its "No.1 LG" goal. At the same time, we
will not neglect our effor ts to explore new businesses that will ser ve as
engines of our future gr owth.
LG전자 - 본문 2003.4 .22 7:14 AM 페이지10