LG 2003 Annual Report Download - page 17

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LG Electronics Inc._Annual Report 2003 17
PLANS FOR 2004
In order to reach our goal of becoming one of the top 3 major electronics and IT companies by the year 2010,
we will reinforce our successful businesses while cultivating new promising ones to develop and release
global No.1 products. Our plan to aggressively strengthen our R&D will include the following activities.
First, on the back of our core competencies, we shall develop and release products that are or can become
global No.1 products. To this end, we aim to invest 75% of our total 2004 R&D budget into businesses that are
successful or that have great potential. For the DTV market, this means focusing on the rapidly growing flat
panel display market including LCD TVs and PDPs. We plan on using our ASIC and DTV software core
competencies to develop TVs with more built-in functionalities as well as all-in-one products that obviate the
need to buy separate components. For mobile handsets, we foresee the next generation models to include
multimedia functions that combine broadcasting and communication as full-scale service of satellite and
terrestrial Digital Multimedia Broadcasting (DMB) is set to begin in 2004. As such, we have acquired the core
technology and parts in order to timely develop high-end products with high-resolution cameras and satellite
reception. In the domestic market, we stand at the vanguard of standardizing the broadcasting and
telecommunication related protocols. Through such activities, LGE will build a strong foundation to lead the
global market.
Second, we will raise our R&D another notch to create premium products for our home appliances, digital
AV and optical storage businesses, areas in which we already have product global leadership. To extend our
superiority in home appliances, we are developing next-generation core technology and components using
new manufacturing methods to produce better compressors and motors, at the same time searching and
nurturing new businesses for continuous growth. As for digital AV and optical storage, we are patenting the
core standards for HD-level next-generation optical storage and we are forging ahead with advanced
development of core technology and parts to maintain our global top position.
Third, we expect to lead the market for our new burgeoning businesses including home network,
telematics, and post PC by cooperating with our service partners to develop multi-functional products that
exploit the convergence of technology. Raising the competitiveness of our successful or promising businesses
will depend upon our ability to develop core components internally, which is strongly correlated with raw
material costs reduction. As for improving the competitiveness of our handset business, we are cooperating
with affiliate component companies to internally develop major parts such as display modules and camera
modules. Going forward, we also plan on internally developing Application Specific Integrated Circuit
(ASIC) and radio frequency components for use in our successfully promising businesses. As a global leader,
we aim to strengthen our international R&D capability by rapidly expanding our local personnel in strategic
areas such as China, India, and Russia and by forging strategic alliances with major companies for the
standardization and development of new products. Along with such strategies, LGE will take a cue from the
Korean government’s 10th plan for next-generation growth engines of future industries and prepare the
foundation to become a Global Top 3 electronics and IT company by the year 2010.
Thank you.
CTO, Woo Hyun Paik
Message from CTO |||||||