LG 2002 Annual Report Download - page 9

LG Electronics Inc. IAnnual Report 2002 I14 15
DTV model, Xcanvas-II, and the company’s built-in digital TV and HD set-top box (STB) products,
thereby enhancing our advantage in product competitiveness.
Third, LGE-developed DTV software was adopted for the experimental data broadcasts on the DASE
format of the Korea Broadcasting System (KBS) during the 2002 World Cup finals. Data services were
also broadcast on a trial basis during the 2002 Busan (Korea) Asian Games. We were also successful in
developing HD-PVR STB technology designed to facilitate EPG (electronic program guide) data
broadcasting.
Fourth, LGE completed the development of Ready DTV technology ahead of the competition, in
compliance with the Cable MOS-Consumer Electronics Industry Agreement on Plug&Play Digital Cable
Compatibility. This innovation was presented at the 2003 International CES held in Las Vegas in
January, winning accolades from North America’s leading MSOs (multiple system operators) and the
FCC chairman for this technology breakthrough. As a reflection of our leading-edge technological
capability, we have received numerous proposals for strategic business and technology alliances from
the world's industry leaders.
> PDP
In response to surging global demand for PDPs, which is exceeding our own expectations, LGE has
embarked on construction of its second mass production facility with an annual capacity of 300,000
units. By taking advantage of our world-leading product technology and commercial production
facilities, LGE plans to expand its annual PDP production capacity to 1.55 million units by 2005 that will
establish us as the world’s No. 1 PDP manufacturer. PDP is a new concept digital image device where
color images are created by emitting (plasma effect) ion gas. Ion gas is generated by adding high
electric pressure to two layers of thin glass panels containing composite gas.
Additionally, LGE created new 37-inch and 50-inch models and a 42-inch HD model, thereby expanding
the breadth of its PDP product line. Furthermore, the company dramatically enhanced the brightness
and contrast quality of the existing 42-, 50- and 60-inch models, thus developing the world’s most
advanced PDP products. We also made significant progress in the development of new cost-saving
technology and production processes, including a direct-applied optical filter, dielectric material green
tape and multi-chip module packaging technology.
> Organic EL
In response to the anticipated rapid growth in global demand for next generation displays, concerted
efforts have been made to build a massive production system, with an emphasis on timely development
of a top-line production process and commercial production technology based on pilot operations.
Furthermore, the development of 2-inch active matrix EL displays for mobile handsets will be
accelerated. Organic EL reduces power consumption since it does not require backlight with its self-light
emission capability while having a 1,000-times faster response time than a LCD. It is also very light and
thin, making it ideal for use in IMT-2000, PDAs, handheld PCs, and compact TV devices which involve
video image, data, voice and Internet functions.
> Mobile Handsets
LGE has created next-generation mobile phones for CDMA EV-DO service, capable of handling
transmissions of high-speed data and multimedia services, and integrated high value-added functions,
such as VOD (video on demand) and built-in cameras. As a result, the company has reinforced its
product leadership in the domestic and overseas handset markets by creating innovative products
tailored to our consumers’ changing preferences. These include a range of differentiated and diverse
handsets, such as a 65,000-color tone CDMA2000 1x handset featuring a cutting-edge organic EL
display and voice recognition function. The swivel hinge-type handsets are also among LGE’s latest
innovations.
For the GSM phone market, LGE launched a GPRS (general packet radio service) handset featuring
multimedia messaging service that is now in great demand worldwide and it will soon be available in
the markets of Europe and China. Of note, LGE’s handsets have been certified by the GSM Certification
Forum (GCF) after passing network interoperability tests between handset and mobile communication
systems required by European mobile operators. Certification has been awarded to LGE’s GSM handset
LG-510W and W7000 models and GPRS color handset: G7000 model, developed with LGE’s proprietary
technology in April 2002.
LGE also demonstrated its technological expertise in mobile handsets during the opening ceremony of
the 2002 World Cup finals with test operation of the world’s first mobile video phone in which users
can see each other during calls. The company has scheduled the release of a highly competitive and up-
to-date mobile phone to coincide with the launch of IMT-2000 service during the second half of 2003.
> Telecommunications Systems
LGE, the first Korean enterprise to commercialize UMTS (Universal Mobile Telecommunications System)
for 3G mobile networks, successfully completed its trial operation of KTiCOM service during the World
Cup finals. With this success, the company was selected as a major supplier of equipment for KTiCOM
service. In addition, LGE earned the right to supply equipment for IMT-2000 service from SKIMT,
thereby solidifying its leadership in the WCDMA market. Another notable achievement was made in the
CDMA handset sector. Driven by the product reliability and leadership of its 1x Overlay and 1x EV-DO
systems, LGE was awarded contracts to supply equipment to Korea’s major telecommunications service
operators, LG Telecom and KTF.
High
Low
Low High
Market Competency
Global Competitive Advantages
Monitor
Digital A/V Home Appliance
Optical Storage
DTV
Mobile Handsets
Electronics &
Telecommunications
Mobile
Telecommunications
Backbone
Communications
PDP
Electron Tube
Analog A/V
Recording
Media
Profitable Businesses
Core Businesses
Strategic Businesses
Businesses for
Selective Promotion
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