LG Electronics

LG Electronics is a Korean electronics supplier. The company is the world's third largest manufacturer of mobile phones, one of the largest suppliers of laptops, LCD displays, flat-screen TVs, audio, video and household appliances. LG has 112 enterprises worldwide (including 81 subsidiaries).

Company structure

By the end of January 2021, LG Electronics' business is built around the following main divisions:

• Home Entertainment (televisions and other electronics for home entertainment);
• Mobile Communications;
• Home Appliance & Air Solution;
• Vehicle Component Solutions;
• Business Solutions.

In addition, the structure includes several small structures, for example:

• Autonomous Vehicle Business Task; self-driving cars
• Robot Business Centre (robots).

Management

The head of LG Electronics is the grandson of the founder of the corporation, Bon-Moo Koo.

Business in Russia

Main article: LG Electronics Russia

Financial performance

2021: Revenue growth by 28%, to $62.4 billion, profit - $1.2 billion

At the end of 2021, LG Electronics revenue increased by 28%, reaching 74.721 trillion won ($62.4 billion). The company's net profit decreased by 31%, amounting to 1.415 trillion won ($1.2 billion).

The largest division remains LG Home Appliance & Air Solution (specializing in the production of household appliances, smart home solutions, air quality control systems), whose turnover in 2021 reached 27.109 trillion, against 22.27 trillion won in 2020.

The revenue of the LG Home Entertainment division, which develops flat-panel TVs and monitors, video and audio equipment, laptops, reached 17.218.6 trillion won in 2021, in 2020 the figure was 13.18 trillion won.

The LG Vehicle Component Solutions division (technologies for cars) in 2021 reached revenue of 7.193 trillion won, while in 2020 the figure was 5.8 trillion won. In the structure of LG Business Solutions (solutions for business), annual revenue exceeded 6.962 trillion won, which approximately corresponds to the indicator of 2020.

LG Electronics, an LED company, finished 2021 with sales of 14.950 trillion won. In comparison with 2020, revenue decreased - then it was 9.63 trillion won.

LG's automotive components division and B2B unit recorded losses due to a shortage of chips, which led to delays in the automakers' production schedules and increased logistics costs, respectively.

LG Electronics expects uncertainty surrounding COVID-19 outbreaks and rising raw material costs to continue in 2022, with the company planning to focus on offering premium products and managing supply chains to ensure profitability.^[1]

Performance indicators

Global Washing Machine Market Share - 6.7%

LG Electronics accounted for 6.7% of the global washing machine market (Euromonitor International data). Read more here.

Global Air Conditioner Market Share - 12.4%

Sales of home air conditioners in the world at the end of 2020 reached 153.5 million units, down 6.1% compared to 2019. The fourth place in the market went to LG Electronics, its share - 4.1% (data from Euromonitor International UK). Read more here.

History

2022

LG tested 6G communication in urban conditions

On September 7, 2022 the South Korean , LG Electronics tested the transmission and reception of data in the terahertz range 6G at a distance of 320 m outdoors. Testing took place in. Berlin More details. here

LG Electronics bought AppleMango

On June 26, 2022, LG Electronics announced the purchase of AppleMango at a price that the companies did not disclose. Electric vehicle charging station operator GS Energy and IT company GS Neotek also took part in the deal. Read more here.

2021

Cho Ju-wan is the new CEO of LG Electronics

On November 25, 2021, LG Electronics said it had promoted its chief strategy officer, Cho Ju-wan, to CEO, while also appointing 50 new executives to open up new business opportunities and focus on digital transformation. Cho Ju-wan will take over the company's top post on December 1, 2021. Read more here.

GM's $1.9 billion compensation payment for Chevrolet Bolt recall

In mid-October, LG Electronics agreed to reimburse General Motors $1.9 billion for the recall and repair of Chevrolet Bolt electric vehicles due to the fire risk caused by faulty batteries provided by the South Korean supplier. Read more here.

Cybellum Car Cyber Defense Software Developer Purchase

On September 23, 2021, LG Electronics announced the acquisition of cybersecurity software developer Cybellum. Read more here.

Leaving the global smartphone market

On April 5, 2021, LG Electronics officially announced its withdrawal from the global smartphone market. The Company shall close the relevant subdivision in accordance with the decision of the Board of Directors. Read more here.

Reducing 60% of staff in the smartphone division

On December 20, 2021, it became known about the reduction of 60% of the headcount in the LG Mobile Communications division, specializing in the development and sale of smartphones. LG Electronics CEO Kwon Bong-Seok warned about the large-scale layoffs in a letter sent to the company's employees. Read more here.

2020

Revenue growth by 1.5%, to $57.3 billion

2020 LG Electronics ended the year with revenue of 63.26 trillion won ($57.3 billion), which is 1.5% more than a year earlier. The largest division remains LG Home Appliance & Air Solution (specializing in the production of household appliances, smart home solutions, air quality control systems), whose turnover in 2020 reached 22.27 trillion won against 21.52 trillion won in 2019.

The mobile division remains unprofitable, and sales here continue to decline. In 2020, revenue here fell to 5.22 trillion won from 5.97 trillion won in 2019.

The revenue of the LG Home Entertainment division, which develops flat-panel TVs and monitors, video and audio equipment, laptops, at the end of 2020 turned out to be 13.18 trillion won, which slightly exceeds the result of the previous year (13.29 trillion won).

LG Vehicle Component Solutions (technologies for cars) in 2020 handed over 5.8 trillion won, while in 2019 - 5.47 trillion won. In the structure of LG Business Solutions (business solutions), annual revenue exceeded 6 trillion won, which is approximately the same as a year ago.

LG Electronics, a member of the LG Electronics group, LG Innotek, which produces LED products, ended 2020 with sales of 9.63 trillion won. In comparison with 2019, revenue decreased - then it was measured at 8.3 trillion won.

Net profit compared to these periods increased by about 11.5 times and amounted to 2.06 trillion won ($1.9 billion). In the mobile business, losses amounted to 841.2 billion won, decreasing relative to losses a year ago of 1 trillion won. Losses were also recorded in LG's automotive business - 367.5 billion won. In 2019, the unit's cash losses amounted to 194.9 billion won.^[2]

Creation of an electric vehicle equipment company

At the end of December 2020, LG Electronics announced the creation of a joint venture with Canadian automotive component manufacturer Magna International to develop equipment for electric vehicles. The project is estimated at $1 billion. Read more here.

Recall of tens of thousands of defective OLED TVs

July 21, 2020 it became known that LG Electronics is recalling about 60 thousand OLED TVs sold in South Korea. The company is going to replace their power boards, the incorrect functioning of which can cause overheating and fire. Read more here.

Hackers stole LG electronics sources and demand ransom

On June 28, 2020, there were reports of theft of the source codes of the software underlying LG Electronics electronic devices. The data could potentially be used to create sophisticated malware.

The South Korean company was the victim of an attack by Maze hackers who managed to steal over 40 GB of data, including Python source codes associated with major companies. USA The attackers confirmed the theft of data from LG Electronics by publishing some screenshots and files directly on their website. They are demanding a ransom.

Maze used a ransomware program, hackers expect to receive a ransom from the company, otherwise all stolen files will be made public. So far, there is no exact information on how exactly hackers managed to gain access to the company's network. During previous attacks, Maze members used compromised administrator accounts, unsecured remote desktops, and vulnerabilities in public Internet networks to steal data.

Maze members tend to hack into the company's network, often using data from other hacker groups to increase the chances of gaining wider access to the system. If victims refuse to pay ransom, Maze representatives publish the stolen files. It is known that recently hackers have hacked several enterprises, but none of them can be compared in size with the international company LG Electronics.

According to information security experts interviewed by Forbes, if the source codes of electronic device programs are in the hands of cybercriminals, then most likely the data will be used to create sophisticated malware, including ransomware viruses and tools designed for crypto-jacking and covert surveillance.^[3]

2019

Luxoft and LG Electronics have created a company to develop automotive technologies

In early January 2020, Luxoft and LG Electronics announced the creation of a joint company to develop and develop the webOS Auto platform and its further use in various automotive devices and systems. Read more here

Brian Kwon is the new CEO of LG Electronics

On November 28, 2019, LG Electronics announced the appointment of Brian Kwon as the company's new CEO. He will officially take this position on December 1, replacing Cho Son Chzhina, who led the consumer electronics manufacturer for three years. Read more here.

Launch of zero carbon initiative around the world

On May 21, 2019, it became known that LG Electronics (LG) launched the Zero Carbon 2030 initiative, committing to achieve zero carbon emissions worldwide within 12 years.

LG plans to reduce carbon emissions by 50% compared to 2017 levels through initiatives to reduce greenhouse gas emissions and use renewable energy. This will allow LG to move closer to achieving the ultimate goal of carbon neutrality with zero net carbon emissions, in which greenhouse gas emissions are balanced by their removal from the atmosphere.

Thanks to various strategic initiatives, the company will reduce carbon emissions at global production sites from almost 2 million tons in 2017 to 960,000 tons by the end of 2030. LG plans to develop the use of technologies focused on reducing greenhouse gas emissions, reducing carbon dioxide generation during the production process.

LG will increase the use of solar-powered products, and will actively apply its own B2B technology solutions to reduce carbon emissions: high-performance chillers and power management systems (EMS).

In addition, thanks to the expansion of projects based on the clean development mechanism - CDM, LG plans to earn certified emission reduction (CER) credits. Such CDM initiatives promote the principles of clean development in developing countries, allowing enterprises that have committed to reducing emissions to implement appropriate projects in these countries using equity and technology. Such projects are very important for obtaining CER loans, which are assigned by the UN Framework Convention on Climate Change following a thorough audit.

LG is a pioneer in this area: the company became a manufacturer of household appliances that received CER loans thanks to the use of high-performance household appliances in 2015. In the future, LG has strengthened its status as an innovative company with a responsible attitude to environmental issues. As of the end of 2018, LG received 340,000 tons of CER thanks to the implementation of CDM initiatives.

Lee Young-je said:

[[:Шаблон:Quote 'by = Lee Young-jae, Vice President of Environmental Safety at LG Electronics]]

2018

Revenue did not rise due to weak smartphone sales

In 2018, LG Electronics revenue amounted to 61.34 trillion won ($54.93 billion at the exchange rate as of February 1, 2019), which approximately corresponds to a year ago.

The Home Appliance & Air Solution division recorded sales of 19.36 trillion won against 18.52 trillion won in 2017.

In the LG Home Entertainment segment, which includes TVs, there was revenue of 16.21 trillion, which decreased slightly compared to the previous year (16.43 trillion won).

LG's phone business is still in decline. In 2018, the revenue of the corresponding unit decreased to 7.89 trillion won from 11.16 trillion won in 2017.

In the corporate sector, the South Korean company's revenues rose from 2.36 to 2.41 trillion won, and in the automotive components division - from 3.34 to 4.29 trillion won.

Largely due to problems in the mobile business, LG's net profit decreased - from 1.87 trillion won in 2017 to 1.47 trillion won a year later. The company does not sell well, smartphones so it has to invest a lot of money in advertising and. marketing LG hopes to fix the situation with flagship devices with support. 5G

Losses in the mobile division increased to 790.1 billion won. LG's Home Entertainment unit made a profit of 1.52 trillion won against 1.33 trillion won in 2017.

At the end of 2018, the profit in the LG Home Appliance & Air Solution structure was equal to 1.52 trillion won, increasing from 1.45 trillion won, which took place in the previous year. The automotive business registered annual losses in the amount of 119.8 billion won, and in the corporate business - profit at the level of 167.8 billion won.^[4]

On the day of the publication of the financial statements for 2018, LG shares fell 1.48%.

Creation of separate units for robots and unmanned vehicles

In late November 2018, LG Electronics announced the creation of two new divisions that will focus on the development of robots (Robot Business Center) and unmanned vehicles (Autonomous Vehicle Business Task). These structures will report directly to the company's CEO, Jo Seong-jin.

According to LG, the focus of the Autonomous Vehicle Business Task will be on medium- to long-term investment and research. To develop artificial intelligence technologies, the South Korean company will launch a new R&D center in North America, which will include various research facilities in the United States and Canada.

As for the robotic business, it was previously divided between two groups (Home Entertainment Business Group and Material and Production Research Group) and overseen by a technical director. Following the restructuring, which will take effect on December 1, 2018, the two groups will be merged into one.

The creation of divisions for the development of robots and self-driving machines became part of a large-scale restructuring of the business structure and personnel changes at the highest level. As part of the reforms, Joe Seong-jin will focus on strategic planning issues, and his daily commitments will go to President and CFO David Jung. He will also be responsible for operational processes, including control over the support of all South Korean facilities, corporate security and communications.

In addition, a new president has been appointed in the smartphone division of LG Mobile Communications. It was Brian Kwon, who replaced Hwang Jeong-hwan.

LG says the restructuring is being carried out so that the company can focus on strategically important areas such as artificial intelligence, the Internet of Things and 5G networks.^[5]

LG OLED TVs burn out 7.5 times faster than announced by the manufacturer

In September 2018, it became known that the organic LED TVs manufactured by LG Electronics do not meet the stated reliability and durability of the manufacturer.

It is known that OLED technologies are characterized by "burn-in," that is, the preservation of a false residual image after a long demonstration of a static object on the screen. LG claims that such a problem does not appear on the company's TVs after at least 30 thousand hours of viewing, which corresponds to 10 years of operation with an average daily operation of the device for eight hours.

Reviewers at Rtings, a TV review site, tested six different 2017 LG OLED models. During the experiment, the televisions worked for five hours, then they were turned off for an hour, and then turned on again for five hours. The cycle was repeated four times a day. For six months of testing, the equipment was turned on for about 4 thousand hours.

In five TVs, the brightness was set to 200 nits, and one device worked at the maximum value. On two TVs, including a model with extreme brightness, CNN was launched. The zone in which a static line with the news and the logo of the TV channel was often displayed, according to the results of testing, was clearly burned out. The same goes for the TV on which the 2018 FIFA game was launched: the part of the screen where the football simulator logo was displayed looked slightly burnt out.

Televisions, where static images were not displayed for a long time, continued to work without problems.

Earlier in 2018, LG's 2018 OLED TVs, which showed flight schedules at Incheon International Airport in South Korea, went down in a couple of months. Due to "burning," the models were replaced with liquid crystal panels.^[6]

Opening of LG Electronics AI Research Lab in Canada

LG Electronics (LG) on August 6, 2018 announced its intention to strengthen its position in the development of artificial intelligence products for both private and corporate consumers in the near future. In this regard, the company, together with experts from the academic environment and successful startups, opens large laboratories in North America.

In particular, LG Electronics AI Research Lab, a division of the recently expanded LG Silicon Valley AI Lab in Santa Clara, California, will soon start operating in Canada. The two North American laboratories are expected to contribute to the development of LG's research potential, which is being implemented in laboratories in South Korea, India and Russia.

In addition, LG plans to launch a partner research project with the University of Toronto, known for its developments in the field of artificial intelligence and machine learning, especially in the field of deep learning. During a five-year research partnership with the University of Toronto, which has a budget of several million dollars, LG intends to develop its Open Platform - Open Partnership - Open Interaction strategy aimed at expanding the artificial intelligence ecosystem. The lab hopes to draw on the expertise of scientists from the University of Toronto, who in turn will have the opportunity to collaborate with a growing team of North American researchers at LG working on artificial intelligence issues. In addition, LG intends to collaborate and invest in some North American startups.

Purchase of industrial robot maker Robostar

In July 2018, LG Electronics announced the purchase of Robostar. Thus, the South Korean consumer electronics manufacturer continued to actively invest in robotics.

Under the terms of the agreement, LG received a 30% stake in Robostar, and by the end of 2019 the share will grow to 33.4%. For 53.6 million won ($47.6 million), 1.95 million ordinary shares were bought. In addition, LG acquired securities owned by Robostar management, but did not disclose the value of this part of the transaction. Read more here.

LG buys ZKW for $1.3 billion

On April 26, 2018, LG Electroncis announced the purchase of ZKW Group for 1.4 trillion won ($1.3 billion). This acquisition was the largest in the history of the South Korean consumer electronics manufacturer. Read more here.

2017

Record revenue

In 2017, LG Electronics sales amounted to 61.4 trillion won ($57.7 billion), which is 10.9% more than in 2016 at 55.36 trillion won. For the first time, the annual revenue of the South Korean consumer electronics manufacturer exceeded 60 trillion won. It also reported a net profit of 1.87 trillion won (about $1.8 billion) against 126.3 billion won a year earlier.

The annual revenue of the Home Appliance & Air Solution division increased by 7% and reached a record 19.2 trillion won ($18 billion). The vendor's profit in this direction amounted to 1.49 trillion won ($1.4 billion), while a year earlier the income was equal to 1.32 billion won. The company noted that LG has achieved impressive performance thanks to its leadership in the premium home electronics market, reports The Korea Herald.^[7]

The Home Entertainment division, which also includes the company's TV business, brought LG revenue of 18.67 trillion won ($17.5 billion), which is 14% more than in 2016. The vendor's profit here reached 1.57 trillion won, which was facilitated by the growing popularity of high-end OLED TVs. For comparison, a year earlier, LG's income here was 1.24 trillion won.

LG's mobile business (Mobile Communications) remained unprofitable: the company lost over 717 billion won ($673 million) in smartphone production. However, losses in the unit decreased - in 2016 they exceeded 1.2 trillion won. Revenue in this direction grew by 3% and amounted to 11.67 trillion won (about $11 billion)

The production of automotive components (Vehicle Components) brought LG revenue of about 3.5 trillion won ($3.3 billion), which is 1% less than in 2016. In this division, the company also registered a loss - it amounted to 101 billion won (about $95 million) against 63.2 billion won a year ago.^[8]

LG sells its ATM division

LG CNS, the IT arm of the South Korean giant, sells its ATM business in the summer of 2017 five years after buying the unit from LG N-Sys. According to industry sources, LG CNS has decided to include its ATM division in restructuring plans and is currently looking for a new owner for this structure. The tasks of the division include providing banking branches with all hardware and software solutions, as well as the main automation devices for the financial service sector, including ATMs and cash dispensers.

2016

Return of the position of CEO. Cho Son Jin the head of the company

In early December 2016, Cho Son Jin was appointed CEO of LG Electronics. The company returned to a management structure involving the existence of one top official. Read more here.

Entering the Medical Device Market

June 27, 2016 it became known about the entry of LG Electronics into the medical device market. First of all, the South Korean corporation is interested in the segment of commercial monitors for healthcare needs.

According to The Korea Herald, a department has been created inside the LG Home Entertainment division (specializing in the manufacture of TVs and other electronics for home entertainment), which will be engaged in the production of medical imaging equipment. This is the first attempt by the company to enter this sector, the newspaper notes.^[9]

The first medical device from LG Electronics will be a digital X-ray detector. The vendor will also present high-precision professional monitors, including models based on displays with organic LEDs (OLEDs).

As of the end of June 2016, LG Electronics is looking for partners and is recruiting specialists for a new team that will focus on releasing medical solutions. Through this unit, the South Korean giant expects to strengthen its position in the corporate sector and master new sources of income.

We recently decided to expand the range of monitors using devices for the medical sector as part of a search for new growth areas, an unnamed representative of LG Electronics told The Korea Times.

According to him, by the end of June 2016, no final decisions were made on this business (in particular, sales tasks were not set and a marketing strategy was not formed), since the company is still at the stage of research and development of medical monitors.^[10]

According to the Ministry of Food and Drug Safety of South Korea, in 2015, local companies manufactured equipment for working with medical images totaling 166.4 billion won ($141.4 million).

=== 2015:

50% profit drop

On January 26, 2016, LG Electronics published a financial statement, from which it follows that the company's profit was reduced by half. The economic problems in the world and the weakness of the telephone business of the South Korean manufacturer are affected.

According to the Yonhap news agency, citing reports that LG provided to the South Korean regulator, in 2015 the company's net profit amounted to 249.1 billion won ($207 million), which is 50% less than a year earlier. Operating profit during this time decreased by almost 35% to 1.19 trillion won ($985 million). Revenue also fell - by 4.3%, reaching 56.5 trillion won ($47 billion).

The company explained the decline in profits by unfavorable fluctuations in exchange rates and a one-time payment of taxes on acquired assets. In addition, LG is pulling down the mobile division, which in October-December 2015 recorded its second consecutive operating loss - in the amount of 44 billion won ($37 million).

In 2015, 59.7 million smartphones were sold under the LG brand worldwide, compared to 59.1 million in 2014. In the last three months of 2015, sales amounted to 15.3 million devices, of which 11 million devices supported LTE networks. The manufacturer notes that for the first time in history, the quarterly implementation of its LTE tubes exceeded 10 million units.

LG recognizes strong competition in the smartphone market, which in 2016, according to the company's management, may intensify in all price segments. Under these conditions, the South Korean giant intends to optimize production costs and accelerate the release of the flagship model, which is scheduled for February.

LG's main source of revenue is its home appliances division, which accounted for about 60% of the company's operating profit in 2015. This business is strengthened by strong sales of premium TVs (OLED and 4K models), refrigerators and washing machines.

However, the company fears the weakening growth of the Chinese economy, which may negatively affect the results of the vendor's work.^[11]

Poor economic conditions in China could force local brands to sell goods that could be purchased domestically, thereby threatening LG, said Jo Seong-jin, head of LG's home appliances division.

Change of leadership

On November 26, 2015, LG Electronics announced a staff restructuring at the highest level. Business management of the South Korean corporation will focus in the hands of three top managers.

As follows from LG's message, the company will be led by Home Appliances & Air Solutions President Jo Seong-jin, Mobile Communications CEO Juno Cho, and LG President and CFO David Jung. The latter is also responsible for corporate administrative matters. In particular, he will oversee foreign sales, marketing, global production and quality management issues. David Yun will remain the company's financial director.

LG Electronics CEO and Vice Chairman Koo Bon-joon will return to parent holding LG Corp, in which he will take one of his managerial positions.

LG Electronics' new top management structure is designed to ensure that each of the three new executives receives "more independence and responsibility to accelerate decision-making in a rapidly changing business environment and diverse consumer segments," the corporation said.

In addition, as a result of the restructuring, all four main divisions of LG - Home Entertainment, Mobile Communications, Home Appliance & Air Solution and Vehicle Components - will be able to operate more autonomously, which in turn will allow them to respond faster to market conditions and the emergence of new opportunities for business growth.

LG's updated organizational structure will take effect after shareholder approval at a meeting to be held in early 2016.^[12]

LG's market share dynamics for cell phones and smartphones

Mobile phone and smartphone sales leaders from 1992 to 2018 in animation below.

2013: Annual profit growth of 116%

LG's net profit for 2013 amounted to 222.7 billion Korean won (203.65 million) dollars , an increase of 116% compared to 2012, according to the company's financial report. LG's 2013 revenue was 58.14 trillion won ($53.1 billion), up 5.4% from a year ago.

In the fourth quarter of 2013, the company made a net loss of 63.5 billion won ($60.21 million). LG's revenue in the fourth quarter was 14.92 trillion won ($14.03 billion), a slight increase from the same period last year - by 0.8%.

In 2014, the company plans to increase revenue to 62.3 trillion won and spend 3 trillion won on investment in fixed assets.

2011: Falling revenue

• In 2011, LG Electronics expected to receive record revenue of 59 trillion won. The volume of investments in 2011 will amount to about 4.8 trillion won. (January 2011 forecast)

• Revenue in 2011 reached 54.26 trillion won ($48.2 billion) compared to 55.75 trillion won in 2010. The loss amounted to 433 billion won ($385 million) against a profit of 1.28 trillion won a year earlier.

Home Entertainment's revenue for the year decreased by 5.5%, Mobile Communications - by 9.9%, Home Appliance - increased by 6.9%.

Analysts noted a positive trend in LG's mobile business. In the fourth quarter of 2011, operating profit in this segment amounted to 10 billion won against an operating loss of 262 billion won a year earlier^[13]

2012: Start of production of EPD screens

On March 29, 2012, LG announced the start of mass production of electronic paper display (EPD) displays, which should appear in Europe early next month. So far, the company has been supplying displays to Chinese ODM manufacturers.

The new miracle of technology, in fact, has a lot similar to ordinary paper, primarily because such a display can be bent up to 40 degrees from the center without compromising its performance. It is scratch resistant, can withstand a drop from a height of 1.5 m, its thickness is only 0.7 mm (about three times less than existing analogues on the market), and its weight is 14 g. A 6-inch model with a resolution of 1024x768 pixels is currently available.

First of all, EPD displays are aimed at the e-book market, their characteristics speak eloquently in favor of this. The screen is made of plastic, and monochrome electronic ink is used as an image forming element. Sang Duck Yeo, chief operating officer of LG Display's Mobile/OLED display subsidiary, did not fail to note LG's innovative approach, which, with the launch of the product, will leave competitors behind and affect the balance of power.

Apparently, in the coming years, we should expect a new wave of e-book models equipped with screens with similar characteristics. Their only significant advantage over modern models is not at all flexibility, but precisely the shock-resistant properties arising from this phenomenon. Of course, a valuable property for mobile gadgets "for every day." The Russian company Wexler at the end of last year made a lot of noise with its Wexler e-book. Book Flex ONE with a flexible 6-inch screen of a similar type. But as of today, this model is not among the available on the developer's website. Rusnano State Corporation, together with the British company Plastic Logic, is engaged in an even more ambitious project to create an electronic school textbook PL100 based on a flexible 10.7-inch screen.

2010

Record loss for the year

LG Electronics received a record loss in 2010 amid weak demand for major products. According to the company, the net loss reached a record 635.9 billion won ($568 million) compared to 1.15 trillion won of net profit received in 2009. This is the worst result for the company since its reorganization in 2002. Revenue for the past year amounted to 55.8 trillion won.

Although LG ranks third among global phone manufacturers in the world, its mobile division is unprofitable. Its operating losses in the second quarter of 2010 amounted to a record value: 120 billion won ($103 million).

According to the study, Gartner in the second quarter of 2010, LG accounted for 9% of the global mobile phone market, but LG's market position is smartphones significantly weaker. LG is also ahead of it Samsung , HTC which already sell several models based on the platform. Android

CEO change: Ku Bon-Jun becomes at the helm

In September 2010, LG Electronics replaced its chief executive officer after record losses in its phone business. The place of the dismissed CEO Nam Yong is taken by 58-year-old Koo Bon-joon, the younger brother of the head of LG Electronics' parent company, LG Group. Management will be replaced on October 1, 2010.

"Mr. Nam resigns, laying responsibility for the company's failures in the mobile market," the LG Group said.

Although LG ranks third among global phone manufacturers in the world, its mobile division is unprofitable. Its operating losses in the second quarter of 2010 amounted to a record value: 120 billion won ($103 million).

LG hopes that the new chief "will be able to narrow LG's gap with Apple and other leading smartphone manufacturers." Investors welcomed the change in leadership, with news of Nam En's departure seeing share prices rise 4.7 per cent from the closing price.

2009: Record second-quarter sales

Despite the global financial crisis, LG recorded record sales and operating profit in the second quarter of 2009, both in South Korea and around the world. Global sales (including LG's overseas affiliates) rose 13.8% to $11.229 billion year-over-year. Operating profit increased to $878 million, representing 7.8% of margin profit. This figure is 1.1% higher compared to the same period in 2008. In South Korea, the company recorded sales of $6.566 billion and operating profit of $553 million.

Sales of the Home Entertainment division grew by 19.3%, reaching a profit of $174 million or 5% of the margin, which is 4.7% higher than in 2008. This growth is due to the high level of sales of flat panel TVs (especially LCD TVs) even in the off-season period. At the same time, in the third quarter of 2009, the company expects that shipments of flat-panel TVs will be even higher due to an increase in demand for premium TV models.

Sales of the Mobile Communications division also increased significantly. They amounted to $3.981 billion, which is 25.8% higher than the previous year. The operating profit of this division of LG was recorded at $422 million, which is 10.6% of the margin. The volume of mobile phone sales for the first half of 2009 amounted to $3.778 billion, which is 29.9% higher than the previous year. Operating profit reached $417 million, which is 11% of the margin. Shipments of LG mobile phones increased by 7.8% compared to the same period last year and by 32% compared to the previous quarter - to 29.82 million units.

2005: LG-Nortel JV created

In 2005, a joint venture for the production of LG-Nortel network solutions was established, and LG CDMA mobile phones took the first place in the world in terms of sales in the third quarter.

In 2005, LG announced the world's first laptop and phone with support for DMB television and with the "Time Machine" function, which allows you to view the TV program in full, even if the user had to distract from other things for a while.

2001: LCD Production Course

In 2001, the company introduced the first 20.1-inch LCD TV in Korea. In the same year, LG develops the idea of ​ ​ a "Digital Home" and produces a microwave oven and air conditioner with the ability to access the Internet. In addition, the company is the first in South Korea to begin exporting plasma panels, and also comes out on top in the world in sales of fixed wireless devices.

In 2003, LG Electronics and Thomson entered into a strategic partnership agreement for the production of plasma panels. In 2004, the company created the world's first 55-inch LCD TV. LG is releasing the world's first 102-inch plasma TV next year. In 2006, the South Korean corporation created the world's first 42-inch LCD TV with Full HD resolution support.

In 2004, the company introduced the next-generation digital television broadcasting technology EVSB, which in the United States and Canada is becoming a priority as a standard for digital television. In the same year, LG released the world's first DMB (Digital Multimedia Broadcasting) phone, based on technology that allows you to transmit a digital signal to mobile devices, which allows you to listen to radio and watch television programs.

1999: Digital LG Philosophy

In 1999, the company documents that from now on its activities are associated exclusively with digital, and therefore with highly intelligent and advanced technologies. The company adopts a declaration of Digital LG's new ideology and philosophy that reflects the impact of digital technology on people's lives.

1997: Reorganization during the Asian financial crisis

In 1997, LG, like other South Korean companies, felt the impact of the Asian crisis. To stay afloat and at the same time increase profits, LG is conducting an effective reorganization of its financial structure. The company gets rid of unprofitable and uncompetitive subsidiaries, introduces a system of personal responsibility and begins to develop the most promising areas. It was at this time that the holding's divisions such as LG Home Shopping, LG Telecom and LG Internet were founded.

1995

Stagnation, merger of Lucky Group and Gold Star, renaming to LG

The beginning of the 1990s is characterized for Lucky Group as a period of stagnation associated with the company's chosen extensive path of development, based on the growth of production capacity, increased jobs, and, therefore, huge financial costs for all these needs.

However, by the mid-1990s, the leadership of the Lucky Group, anticipating the emerging crisis, was deciding on another restructuring. In 1995, Lucky Group, Gold Star and other companies will merge under a single LG Group brand.

At the same time, the newly created corporation announces the beginning of the digital era in its history. As part of the new ideology, the concept of LG's technical vision program for the future was developed, which was called "Leap in 2005" (LEAP 2005). The motto of this program was the slogan "The best company in the world with the right and healthy management," and the main tasks: market leadership, achieving an annual turnover of $40 billion by 2005 and the transition from the low-cost consumer electronics market to high-tech products that should compete on equal terms with well-known brands of the global electronics industry such as Siemens, Samsung, Philips and others.

Implementing the new ideas proclaimed by the company, the head of LG Bon-Moo Koo begins to pursue a policy of openness and transparency. Now the main pillars of the company's business are profitability and equity, instead of the previously applied growth and expansion policy.

And as proof of the seriousness of their intentions in 1995, LG Electronics and the Japanese company ALPS are creating the Frontec research laboratory, where they are developing active liquid crystal matrices based on thin-film transistors, plasma panels and plasma technologies. The result of LG's laboratory was the emergence in 1997 of the world's first integrated circuit for the production of digital TVs, which was the initial stage for the creation of plasma and liquid crystal panels. In addition, the South Korean corporation, developing the LCD direction, is establishing cooperation with the American computer company IBM. The result of the cooperation was the opening of a joint venture LG-IBM, which was engaged in the supply of liquid crystal displays for IBM ThinkPad laptops.

The company is also making great progress in introducing CDMA digital mobile telecommunications systems. Thus, LG is involved in the development of PCS personal communication systems and in 1996 received a PCS service provider license.

For the final proclamation of the new ideology, LG conducted one of the largest advertising campaigns in history to promote the new name and new logo of the holding. Soon, few people remembered the old name of the company, but everyone knew the logo and trademark of LG.

Purchase of American Zenith Electronics

LG Electronics acquired a majority stake in Zenith Electronics in 1995; Zenith became a subsidiary in 1999.

1982: The beginning of globalization and the first factories in the United States and Europe

In the 1980s, the Lucky Group Corporation began to actively develop its own production outside of South Korea. In other words, the stage of globalization of the company begins. In 1982, Lucky Group opened the first factory in the history of South Korea abroad - it was a television production facility in Huntsville, Alabama, USA. In 1983, the company opened its first factory in Europe for the production of video recorders, which is located in Germany.

In addition to expanding production facilities, Lucky Group is also actively continuing to produce new types of products. For example, in 1982, the company mastered the production of South Korea's first personal computer and video camera.

In the late 1980s and early 1990s, Lucky Group placed great emphasis on innovation. To develop production based on the latest digital technologies in 1989 and 1990, the company creates a number of joint ventures in the Philippines, Thailand, Great Britain Egypt, Italy and Indonesia. In addition, in 1990, Lucky Group opened Ireland its first foreign design center. At this time, the company is laying the foundation for the production of the first LCD displays, and also launches FMV and VOD multimedia personal computers on the market.

1976: Course on import substitution and the creation of a private research center

The success of Lucky Group in the global market has forced the company's management to pay even greater attention to the development of innovation. In 1976, the company created the first private research center in South Korea, which is engaged in research in the field of the latest electronic technologies. This was an important event not only for the Lucky Group, but also for the whole country, since now South Korea had the opportunity to develop its own technologies, and not depend entirely on technological assistance from the United States and Japan. At the same time, in order to keep up with the latest scientific achievements in the field of electronic technology, the company enters into a number of cooperation agreements with leading telecommunications companies such as Siemens, NEC and others.

All these measures allowed Lucky Group to quickly turn from an importer to an exporter of the latest technology. That is, other firms have already followed what the South Korean company is preparing new in the field of electronics.

1975: Expansion into the US and Europe

Against the background of the emergence of new areas of the company's activity, the profit of Gold Star, the "electronic subsidiary" of Lucky Group, grew steadily, therefore, an quite logical step in strengthening this trend was the expansion of the company's business outside the country. Gradually, branches and distributors of the consumer electronics manufacturer from South Korea are opening in America, Europe, as well as in other parts of the world. For example, in 1975, Gold Star opened the first subsidiary trading division in the United States. By 1978, the company's exports exceeded $100 million.

1974: Luk Chemical renamed Lucky Group

In addition to developing new technologies, Luk Chemical Co paid great attention to business processes within the company. The restructuring resulted in a rebranding carried out in March 1974. Now the chemical company Luk Chemical Co was renamed Lucky Chemical Ind, and the newly created merged corporation, which included many subsidiaries, including Gold Star, was called Lucky Group.

All these metamorphoses occurred already under the new president, the son of the founder of the company, Koo Cha Kyung. During his leadership, Lucky Group continued its policy of expanding its product range and finding new markets. The corporation has become seriously interested in the development of its business in the field of construction, security systems, communications, semiconductor production and oil processing.

It is worth noting that LG is the so-called chebol - the South Korean form of business conglomerates, which is a group of formally independent companies owned by certain families and under the same administrative and financial control. Chaeboli originated in South Korea at the end of the Korean War and still exist today. The organization of the corporation in the form of a chaebol also explains the continuity in the leadership of the company. So, currently the head of LG is the grandson of the founder of the corporation, Bon-Moo Koo.

1958: Creation of consumer electronics manufacturer Gold Star

By the late 1950s, the South Korean government was actively encouraging new high-tech industries. In 1958, South Korean President Park Chong Hui (Pak Chong Hui) supported the Luk Chemical Co initiative to create a new consumer electronics enterprise. This is how Gold Star, the progenitor of modern LG Electronics, is born. A year later, the new division of Luk Chemical Co produces the first transistor radio in South Korea.

Then, one after another, Gold Star produces new household appliances: in 1960 the first Korean fan was born, in 1963 the first Korean electric hairdryer came out of the assembly line, in 1965 - a refrigerator, 1966 - a black and white TV, in 1968 - a washing machine, in 1969 air conditioning, in 1970 - an automatic multichannel phone. All new products of the company found their buyer and were in good demand in South Korea.

1952: South Korea's first plastics manufacturer

Luk Chemical Co founder Ku Ying Hoi invested the first major profits in opening new lines of business, for example, in research on new chemical materials. So, in 1952, the company became the first plastic manufacturer in South Korea.

1947: Ku Ying-hoi founded Luk Chemical to make household chemicals and cosmetics

LG has officially existed since 1958, but in fact its story begins 11 years earlier. In January 1947, Koo In-hwoi, the founder of the future electronics giant, created a small firm in Seoul, Luk Chemical Co, which was engaged in the production of household chemicals and cosmetics. The first products of the current leader of modern technology were face cream, toothbrush and pasta. Gradually, the company acquired a fairly developed network of branches throughout South Korea.

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• Success Story: LG

Notes