LG 2002 Annual Report Download - page 8

Performance in 2002
The year 2002 posed a challenging business environment. In particular, global geopolitical and economic conditions have deteriorated
primarily due to concerns over the possibility of war in Iraq, amid delayed recovery of the global IT sector and volatility in international
interest rates, oil prices, and the won-dollar exchange rate. Despite this adversity, LGE realized significant advance in its product
development activities in 2002.
The company concentrated its R&D activities on its core businesses including digital TV and PDPs (plasma display panels), while aggressively
pursuing core technologies and new business opportunities. As a result, LGE obtained new patents for core DTV technology. Our recent
successes also include development of a HD (high definition)-grade PDP as well as mobile phones for CDMA EV-DO service, demonstrating
LGE’s world-leading technology prowess.
Furthermore, we have created a range of premium home appliances and new digital solutions, augmenting our technological capabilities.
These next-generation products include a turbo-drum washing machine, DVD with multiple-write function, Home Theater, HD-grade VDR
(video disc recorder) with embedded VSB tuner, a cutting-edge AV product that can record and play HD-grade video signals, and mobile
handsets featuring state-of-the-art OLED (organic electro-luminescence displays). Indeed, LGE stands at the forefront of next-generation
technology development by building new technological platforms and earning commercial patents. We were also actively involved in the
establishment of hardware standards for home networking and optical storage.
> Digital TV
We consolidated our leadership position in domestic HD Projection TV through the release of Xcanvas II,
boosted by robust demand for next-generation TVs sparked by the 2002 Korea-Japan World Cup finals.
Of note, the U.S. Federal Communications Commission (FCC) revised its rules on digital TV by requiring
off-air DTV tuners on practically all new TV sets by 2007. This regulation will serve to bolster utilization
of the transmission standard for which LGE possesses the source patent for technology. Consequently,
LGE is ideally positioned to become a high-profile player in the rapidly growing North American digital
TV market.
I would like to explain some of our major technological developments. First, the transmission technology
for VSB (vestigial side band) chip set for DTV has been significantly upgraded with the launch of full
data broadcasting services, especially in terms of indoor reception quality. Development of new
transmission standards has required LGE to actively pursue business partnerships with leading global
players. LGE will soon have its upgraded transmission standards registered with the FCC.
Second, in regard to the ASIC chip set, a key DTV component in which LGE maintains world-leading
technology, the company developed both Ready Chip, which reinforces the display function and HD-II
chip. The innovative HD-II chip added audio function and conforms to various broadcast requirements,
including those of Japan’s ARIB. This leading-edge product was applied for the production of a new
LG Electronics Inc. IAnnual Report 2002 I12 13
Woo Hyun Paik
Chief Technology Officer
We committed all available resources to the development of core technologies and
next-generation products through increased R&D investment in strategic
businesses, including digital TV, PDPs and mobile handsets.
LG전자 - 본문 2003.4 .22 7:14 AM 페이지16