LG 2004 Annual Report Download - page 35

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LG ELECTRONICS ANNUAL REPORT 2004
034
035
In 2004, our overall business environment
faced both domestic and international difficulties. This
was primarily due to continued Korean economic
stagnation, a sharp rise in global commodity prices, and
the depreciating value of the US dollar. To meet this
challenging environment, we have made ceaseless
efforts in research and development that are tailored
toward finding growth resources, as well as launching
new advanced mobile handsets, digital TVs, and
displays. As a result, LG Electronics developed the
world's first terrestrial DMB phones, and began
commercial production of 71 inch PDPs (the biggest
screen size in the world). Additionally, our digital TV
technology has been adopted as the standard in the U.S.
In its main business areas, LG Electronics has achieved
great results in developing premium products with
advanced technologies such as Super Multi Drives,
environmentally friendly high-efficiency multi air-
conditioners, and slim type TROMM washing machines.
Those products have caused the Company to be
recognized as a technology leader, and they have
maximized operating profits as well. In 2004, we also
formed a robust base that will help us grow to become a
'Global Top 3' electronics company. We have done this
by actively promoting such untapped growth drivers as
next-generation displays, Home Networks and
Telematics.
DIGITAL TV �LG Electronics has
accomplished remarkable achievements based on such
core technologies as display modules, ASIC, and
software. In July 2004, the U.S. FCC adopted our
Enhanced VSB transmission technology as their ATSC
standard. VSB is a next generation digital TV
broadcasting technology that offers smooth data
transmission service, as well as improved data reception
performance in shadow areas where the transmission
signal strength is weak. Furthermore, LG Electronics,
along with partner companies Sony and Hitachi,
obtained the world's first 'Digital Cable Ready'
certification from CableLabs, a U.S. authentication
institute for cable TV standards. This will help us gain a
competitive advantage in the North American cable TV
market.
PDP �In April of 2004, LG
Electronics launched world-class PDP production
facilities by establishing a third line. We introduced an
innovative production process to the entire production
lines, increasing productivity efficiency. On the
technology front, we developed and began the mass
production of the world's first 42 inch XGA PDP module
employed with Single Scan technology, and developed
a 42 inch VGA PDP module that boasts the world's best
brightness and contrast ratio. Thanks to these efforts,
Strategic Alliances
By establishing strategic alliances and joint ventures with worldwide advanced businesses, LG Electronics has advanced
the Korean electronics and telecommunications industries to the No.1 positions in the world. We are constantly
forging new partnerships in the pursuit of new technology standardization and future business arenas other than
existing businesses. By doing this we secure advanced global technologies, and consolidate our path towards
becoming a major player in the multimedia business.
HP
SONY
PhilipsSUN
ARRAYCOMM INTEL THOMSONTI
Microsoft
Matsushita
GE
NORTEL
Hitachi