LG 2003 Annual Report Download - page 13

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|||||||Message from CTO |||||||
LG Electronics Inc._Annual Report 2003 13
2003 ACHIEVEMENTS
2003 was a difficult year for management as we had to navigate through rough waters brought on by a
slowdown in our domestic market and uneasy international economic conditions such as the Iraq war, the
delay in the IT market recovery, the rise in oil prices, and fluctuating exchange rates. Even against such a
backdrop, we raised our R&D investment in successful businesses like Digital TV (DTV)s, PDPs & mobile
handsets while focusing our efforts in developing new products and our core technologies. As a result, we
were able to produce some of the world’s first and best products like DTV ASIC chips (US standard DTV
chip), high definition PDPs, digital tuner embedded PDPs and LCD TVs, and multimedia EV-DO mobile
handsets with a camcorder functionality. We also obtained excellent results by developing premium
appliances and new digital products such as our front loading washing machine, a multi-air conditioner for
buildings, energy-saving linear-type refrigerators, wireless home theater system, and DVD multi-recorders.
By focusing on and investing in prospective high-growth digital businesses like home network, telematics,
Organic Light-Emitting Diodes (OLED), and convergence products like multi-functional handsets, we will
enhance our position as a global leader in the Digital Age.
Digital TV
We believe 2003 marked the official start to a rapid growth period for DTVs as we saw the expansion of
digital broadcasting in North America & Europe and a rapid fall in DTV prices. We also experienced steady
growth in the domestic market despite the weak economy buoyed by the release of the world’s first digital
tuner embedded PDP and LCD TV, as well as the expansion of our LCD and DLP Projection lineup. In the
North American market, the FCC has been a major driver behind the growth of the DTV market as FCC
mandated in August of 2002 that all DTVs to include a built-in digital tuner and in September 2003 released
the guidelines for Cable Ready DTV.
We have devoted much of our energies into furthering the
technology for DTVs. First, our ASIC chip with an internal
CPU has an algorithm to improve resolution and a digital
interface which reduces raw material costs and raises the
competitiveness of our product. We have also upgraded our
internal Ready Chip with “XD Engine,” our proprietary
image-enhancing algorithm. We believe these new chips will
help us become a leader in the global DTV market.
Second, we have been forming strategic alliances with the
major DTV makers to adopt our VSB transmission
technology, and we believe the US FCC will standardize it in
the first half of 2004.
Third, we have developed software for DTVs. Personal
Finding the Next Generation Growth Engine
High
Low
HighLow
Global Competency
Global Market Profitabiity
Analog A/V
Recording Media
Digital A/V Home Appliance
Optical Storage
Mobile Handsets DTV
PDP
Electronics &
Telecommunication
PC
Mobile Telecom-
munications
Backbone
Communications
Monitor
Future Growth BusinessBusiness for
Selective Promotion
Core Business
Profitable Business