| Type | Public |
|---|---|
| Traded as | KRX: 066570 LSE: LGLD |
| Industry | Consumer electronics Home appliances Telecommunications |
| Founded | 1958 |
| Headquarters | Seoul, South Korea |
| Area served | Worldwide |
| Key people | Koo Bon-joon (Vice Chairman and CEO) |
| Products | Computer monitors Flash memory Televisions Smartphones Tablets Mobile phones DVD players Blu-ray players Home Cinema systems Movie projectors Laptops CD and DVD drives Refrigerators Washing machines Vacuum cleaners Air conditioners |
| Revenue | US$ 48.2 billion (2010) |
| Net income | US$ 1.1 billion (2010) |
| Employees | 82,772 |
| Parent | LG Group |
| Website | www.lge.com www.lg.com |
LG Electronics (Korean: LG전자, KRX: 066570, LSE: LGLD) is a global electronics and telecommunications company headquartered in Yeouido, Seoul, South Korea. The company operates its business through five divisions: mobile communications, home entertainment, home appliance, air conditioning and business solution. LG Electronics is the world's second-largest manufacturer of television sets[1] and third-largest producer of mobile phones.[2] It is a flagship subsidiary company of LG Group, one of the world's largest electronic conglomerates.
The company has 75 subsidiaries worldwide that design and manufacture televisions, home appliances, and telecommunications devices. LG Electronics owns Zenith Electronics and controls 37.91 percent of LG Display.[3] Its mobile communications division provides mobile communication terminals, personal computers and communication devices. The home entertainment division offers liquid crystal display (LCD) televisions (TVs), plasma display panel (PDP) TVs, PDP modules, and audio, video and storage devices. The home appliance division provides refrigerators, washing machines, microwave ovens, cleaners, compressors, motors and others. The air conditioning division provides air conditioners and solar cells. Its business solution division provides integrated solutions of hardware, software, network, contents and systems.
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By 2005, LG was a Top 100 global brand, and in 2006 , LG recorded a brand growth of 14%.[4] Its affiliate, LG Display, is now the world's largest plasma panel manufacturer.[5]
The company was originally established in 1958 as GoldStar, producing radios, TVs, refrigerators, washing machines, and air conditioners.[6] The LG Group was a merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym. Before the corporate name change to LG, household products were sold under the brand name of Lucky, while electronic products were sold under the brand name of GoldStar (Hangul:금성). In January 2009 LG was able to buy the domain name LG.com, for a price reportedly to be more than $100 million, placing it among the companies who own their two letter brand's domain name.[7]
In 1994 GoldStar gained sponsorship from The 3DO Company to make the first 3DO Interactive Multiplayer. In 1995, GoldStar was renamed LG Electronics, and acquired Zenith Electronics of the United States. LG Solar Energy is a subsidiary formed in 2007 to allow LG Chem to supply polysilicon to LG Electronics for production of solar cells. In 2008, LG took its first dive into the solar-panel manufacturing pool, as it announced a preliminary deal to form a joint venture with Conergy. Under the deal, set to be completed by year's end, LG would acquire a 75 percent stake in Conergy's Frankfurt solar-panel plant.[8] LG has produced camcorders called ARTCAM and DSLRs.[9]
Home Entertainment
Plasma TVs, LCD TVs, PDP Modules, OLED Panels, USB Memory, Flat Panel Computer Monitors
Home Theater Systems, Blu-ray Disc players, DVD Recorders, Super Multi DVD Rewriters, CD±RW, Notebook PCs, Desktop PCs, MP3 Players
Mobile Communications
LG Electronics is the world's third largest handset maker behind leader Nokia, and Samsung. LG said it expects a significant increase in mobile phone sales this year 2010, while 20 new smartphones present and aims to become one of the leading manufacturers in the sector by 2012.
The Korean company hopes to sell 140 million phones in 2010, said Skott Ahn, CEO of mobile phone unit. That would mean an increase compared to the past year, where an estimated 117 million sold units. Ahn said LG Electronics reported a global market share in double digits in 2009 for the first time, despite a 5% contraction in the global market. "In 2010 we will build the foundation to become the global number two in 2012," said Ahn.
In the 3rd quarter of 2010, LG's market share of the global mobile phone market had dropped to 6.6% (compared to 10.3% in 3Q09).[10] Overall, LG sold 116.7 million mobile phones in 2010, corresponding to a market share of 8.4%.[11]
LG mobile devices are made for GSM networks as well as for CDMA networks worldwide. LG phones are available also in unlocked versions that can be used on any GSM network worldwide and not just for a specific carrier's network.[12]
Home Appliances
The Home Appliances division makes products like refrigerators and washing machines. Its 2007 sales totaled KRW 11.8 trillion, accounting for 29% of the company's total revenue. The division's profit was KRW 717.1 billion. About 35% of the company's home appliance revenue comes from the North American market.[13]
Air Conditioning
Various Air conditioning units.
Business Solutions
Monitors, Car Infotainment, Telematics, Digital Signage Solutions
LG Electronics manufactures products in a number of categories:
LG Electronics introduced their first Internet TV in 2007, originally branded as "NetCast Entertainment Access" devices. They later renamed the 2011 Internet TV's to “LG Smart TV” when more interactive television features were added, that enables the audience to receive information from the Internet while at the same time watching conventional TV programming.[14][15] LG's Magic Motion remote uses Hillcrest Labs' Freespace technology to allow users to change channels using gestures.[16]
LG is listed in Greenpeace’s Guide to Greener Electronics where it ranked joint 13th (with Toshiba) out of 15 leading electronics makers in November 2011, scoring 2.8 out of 10. LG benefited from having a penalty point lifted from the previous edition (October 2010). The company was penalised for failing to meet its commitment to make products free of polyvinyl chloride (PVC) plastic and brominated flame retardants (BFRs) by the end of 2010. All of LG's mobile phones are now free from PVC and BFRs while other products such as TVs and notebooks contain PVC/BFR free parts and LGE aims to phase these substances out from TVs monitors and PCs by 2012 and household appliances by 2014.[17]
In the Guide the company scored badly on the Energy criteria, being criticized for setting a weak target for the reduction of greenhouse gas emissions and not making renewable energy part of its low carbon strategy. LG scored most points in the Sustainable Operations category with the company providing take-back for obsolete phones in 52 countries and being in the process of addressing the issue of conflict minerals. However, the guide warned that LG risks incurring a penalty point in future editions as it was still being listed as a client of Asia Pulp and Paper (APP) who have been linked to illegal logging and deforestation in Indonesia.[17]
Choice magazine, in independent tests of popular LG fridge models in 2010, found the energy consumption in two models was higher than claimed by LG. LG was aware of the problem and had offered compensation to affected customers.[18] In 2004, LG made 4A-rated water efficiency claims for numerous washing machines before they were certified. LG gave undertakings to the Australian Competition and Consumer Commission (ACCC) to provide appropriate corrective notices and upgrade and maintain its trade practices compliance program. In 2006, LG overstated energy efficiency on five of its air conditioner models and was again required to offer consumers rebates to cover the extra energy costs.[18]
LG Electronics sponsored the English football club and Weyside Rovers (Guildford) from 2000 until 2002. LG Electronics currently sponsors the English football clubs Fulham F.C deals pulled together at that time by the ex-Marketing Director John Bernard, who now works for the competition, Sony Ericsson. LG also sponsor the Fremantle Football Club (an Australian Football League team), the Costa Rican football club: Liga de Alajuense, the Australian club National Rugby League team Cronulla Sharks, and the Argentinian club Boca Juniors.
LG is one of the leading sponsors of Cricket. It sponsors the International Cricket Council, world's governing body for cricket and other cricket tournaments like Cricket World Cup. It also sponsors ICC Awards.[19]
During the period 2001–2003 the company sponsored the snooker Grand Prix. During these years the tournament was known as the LG Cup.
LG now also sponsors London Fashion Week and the LG Arena in Birmingham.[20]
In 2008 LG became sponsors of the Extreme Sport 'FSO4 Freeze' festival[21] and in January 2009 LG became a Global Partner and Technology Partner of Formula One.[22] This electronics company is now an official supplier to Virgin Racing, as well as Lotus Racing and engine manufacturer Cosworth.[23]
In addition to this LG in cooperation with local electronics retailer BAKOND and Ministry of Education of Azerbaijan Republic is sponsor of Azerbaijan's most popular intellectual TV Show – LG Knowledge Academy . So far more than 200 000 students from all over Azerbaijan participated in LG Knowledge Academy. In 2009 after huge success organizing committee decided to start second season of game (2009–2010).
LG sponsored the LG Mobile World Cup texting competition.[24]
In 2008, LG won 11 red dot design awards, 11 iF product design awards, and 13 Innovation Awards at CES, where the 50-inch PG6000 1080p Plasma HDTV was “Best of Video Display.”
In 2009 LG has won 15 Design & Technology honors at CES including the CES 'Best of Innovations' in the Wireless Communications Category for LG Dare (VX9700) and Home Appliances Category for Steam Laundry Pair:SteamWasher with Allergiene Cycle and SteamDryer(WM3001H). Seven 2009 products have been awarded with iF product design awards and another seven received red dot design awards.
Two LG washing machines have also achieved Asthma and Allergy Friendly Certification based on the Allergiene Steam cycle. The Asthma and Allergy Friendly Certification Program is a science based Certification mark that is awarded to products that are proven to be more suitable for those suffering from asthma and allergies. The Allergiene cycle of the LG washing machines has been proven to be capable of reaching thermal killing temperatures for the house dust mite, and also that any allergen present will be removed following washing.
More recently LG's LUV300B Kompressor vacuum cleaner has also been certified as Asthma and Allergy Friendly. Vacuum cleaners that are certified as Asthma and Allergy Friendly have been scientifically tested for their ability to remove allergen from carpets and have also been assessed for particle generation during vacuuming.
In 2010, LG Electronics got awards for Excellence in Design and Innovation in 7 categories and "Best of Innovations" award in the Video Display category for a dramatic new 55-inch class FULL LED HDTV with 3D capability and Internet.[25]
The Brand Trust Report, India Study, 2011, conducted by the Trust Research Advisory ranked LG Electronics as the Fourth most trusted brand in India.[26]
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