LG 2002 Annual Report Download - page 6

LG Electronics Inc. IAnnual Report 2002 I08 09
changing business enviroment will be able to overcome adverse business conditions and achieve
sustained growth.
The aspiration and passion for “ No. 1,” along with a flexible and creative mindset, will enable the
management and employees of LG Electronics to build a paragon of entrepreneurial culture, while
propelling LG Electronics into a global “ Great Company.”
At this time, I cordially solicit the continued encouragement and valued support of our shareholders as
we move toward our targets for the year ahead and our long-term goals for the future.
> Sustaining Rapid Growth
Driven by robust sales of high value-added products, the Digital Appliance business surged by 22% in
2002 over the previous year. Indeed, the company has sustained rapid growth in this sector for several
years, and is nearing its goal of joining the “ Global Top 3” in the field of digital consumer appliances.
Once the Home Network market begins to take off in earnest, the company’s Digital Appliance business
will be ideally positioned for continued strong growth. Despite a challenging operating environment, the
Display & Media business also performed superbly, growing by 17% in 2002 over the previous year.
These remarkable operating results of the past year can be attributed to the strenuous efforts of each
business sector to solidify its leadership in the global market. Yet without the abiding faith and support
of our shareholders in the company’s vision and capabilities, none of this would have been possible.
Thus, I would like to reaffirm my gratitude to them.
In the year ahead, we will again endeavor to realize our vision and meet the expectations of our
shareholders. The global economy remains mired in uncertainty, and domestic business conditions are
still highly volatile. Nevertheless, we will accelerate efforts to develop premium products tailored to the
changing needs of customers, expand overseas sales, and continue to enhance profitability.
We have set a goal of becoming one of the Top 3 companies in electronics and information and
telecommunications by 2010, and we have established strategic action programs to achieve that goal.
Each business sector has already begun to advance toward its respective target, armed with a
pioneering spirit and the ambition to write a “ new chapter” in the unfolding history of LG Electronics.
> Outlook for 2003
Reviewing our management strategies for the new year, the Mobile Handset business will strive to
sustain its current steady growth in GSM handset sales and enlarge its share of the domestic CDMA
phone market. The GSM business will focus on promoting profit-oriented management and creating a
strong profitability structure. Our overall goal for 2003 is to move up to fifth place in the worldwide
mobile handset market.
With respect to the Display & Media business, LG Electronics will commit all available resources to
develop next-generation display products, such as digital TVs, PDPs, LCDs and organic ELs, while
consolidating its market leadership. The Digital Appliance business will target global markets with
higher value-added products, and will move quickly to reinforce its market position in the Home
Network sector.
We will also exert maximum efforts to foster a corporate culture conducive to attaining our vision of the
“ No. 1 LG.” We believe that only those enterprises with a strong corporate culture and resilience to the
Long-term Strategy
2001 2002 2003 2004 2005 2006 2007
Chief Executive Officer John Koo
Cash Cow
Businesses
Strategic
Businesses
Optical Storage / Monitor
Air Conditioner / Refrigerator / Washing Machine
CDMA Handset / GSM Handset
Digital TV
PDP
Organic EL
Investment
Expanding market share through
technology innovation
and brand power
LGE will bolster its competitive advantages through development of next-generation products and strategic
alliances.
LGE will maximize cash flow through sustained growth of its digital appliances and telecommunications devices, and to
focus its resources on strategic businesses. LG Electronics aims to become a Global Top Player by 2005.
LG전자 - 본문 2003.4 .22 7:14 AM 페이지12