"Developing 120 Products into the World’s Best"

LG Group declared that it will develop 120 products and technologies, including multimedia technology, advanced display technology, digital TVs, next generation batteries, and bio-science technology, into the world’s best.

On March 16, LG Group announced its plan in a meeting of R&D achievement reports at the group’s training institute “In-Hwa-Won” in Icheon, Gyeonggi Province. Thirty CEOs of the affiliates and 350 R&D executives participated in the meeting, which was presided over by Koo Bon-moo, the group’s chairman.

Developing 120 of the World’s Best Products–

Mr. Koo said, “Only the best products win the recognition of customers in this era of unlimited competition. The basic foundation of the best products is R&D. The R&D work force is not only the source of competitiveness in global competition but also the hope of LG.”

One can understand the specific business strategies of Mr. Kim, who emphasized the importance of R&D, by looking at the list of the 120 products.

As its main business, LG Electronics, a core affiliate of the group, designated the digital electronic appliances and the AV (free-joint multifunction air conditioner, DVD/recorder combo ) business, which include new generation terminals, WCDMA phones, terrestrial and satellite DMB phones, PDA phones, high resolution digital camera phones, and MP3 tone quality technology.

Moreover, LG. Philips LCD pointed to its 55-inch LCD for the HDTV and high resolution LCD for PCs and laptops as potential products to be the world’s best.

LG Electronics and LC Chem agreed to conduct joint research on future energy displays such as fuel cell and solar cell flexible display and to develop new products involving nanotechnology.

R&D Will Decide the Group’s Fate-

Yeo Jong-kee, president and chief technology officer of LG Chem, said in a press conference after the meeting, “R&D will decide the group’s fate. The group will offer stock options to R&D executives within this year.”

In line with such actions, LG Group will increase its R&D investment to 3.4 trillion won this year, up from 2.4 trillion won of last year.

Sang-Soo Kim Young-Hae Choi ssoo@donga.com yhchoi65@donga.com