LG to invest more

By Kim Yoo-chul LG Group, whose businesses include electronics, telecommunications, chemicals and display panels, is set to make a record investment next year to gain market share and to nurture future projects. The rather upbeat plan comes after its key electronics and chemical businesses are expected to show increased profits helped by rising consumer demand for high-end finished products. In a statement, LG said it will invest 21 trillion won next year, an increase of 11.7 percent from this year’s estimated 18.8 trillion won. Of the total, 16.3 trillion won will be used for facilities, while the remaining 4.7 trillion won will go to R&D, according to a statement released Monday. ``Group Chairman Koo Bon-moo has asked chief executives of our key affiliates to seek market leadership with advanced products and invest in untouched but lucrative areas,’’ said Jeong Jung-wook, a senior LG Group spokesman. Jeong said next year’s R&D budget is in line with the chairman’s repeated calls to develop original technology to differentiate itself as a creator. The group’s electronics business will get 14.2 trillion won of the investment, while its chemical and telecommunications departments will receive 3.6 trillion won and 3.2 trillion won, respectively. Business expansion In electronics, the group said its display-making unit LG Display will build new lines to produce variously sized LCD screens. LG Electronics will expand its annual capacity for solar cells by constructing three additional manufacturing lines by the end of the first half of 2011. LG Innotek, a component-making unit, will also expand its facilities producing camera modules for smartphones and PCBs used in tablet PCs amid the rising popularity of value-added portable devices. LG Chem will expand its lithium-ion battery-producing lines and will continue its investment to build a glass substrate-producing plant for LCD screens with commercialization set for 2012. LG Hausys will receive money for the construction of its energy-intensive “Low E” glass-producing line,’ while LG Life Science is ready to get approval to build a medical plant. In the telcom sector, LG Uplus ― the nation’s smallest mobile carrier after SK Telecom and KT ― will expand its Wi-Fi zones and continue working towards the next-generation telecommunication backbones, to help it compete with its bigger rivals. ``LG’s key business affiliates are urgently needed to spur business momentum. The group will do the best it can to help our units beat their overseas rivals in key markets,’’ added Jeong. Next-generation technology Business expansion is not all about next year’s investment plan as the group intends to look into next-generation technologies. LG Electronics will hire more research staff for a better position markets for smartphones, tablet PCs, and smart and 3D televisions. ``More design-related staff will be hired, while our home appliances unit will focus on developing distinguishing products,’’ said LG Electronics spokesman Jerry Kim. LG Display will continue to work on AM OLEDs, 3D panels and electronic paper, while LG Innotek will push high-end LED light bulbs. In the chemical business, LG Chem plans to develop technology for electric vehicles, advanced glass substrates for LCDs. Also, LG Life Science will look to strengthen its bio-similar portfolio. ``LG Uplus’ top priorities are to develop smart television content based on cloud-computing services and platforms for mobile advertisements,’’ said an LG Uplus spokesman.

yckim@koreatimes.co.kr