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LG Chairman Koo Bon-moo, left in the front row, is briefed on the company's strategies for three-dimensional televisions during a recent trip to inspect one of LG Display's key factories. / Korea Times file |
By Kim Yoo-chul
LG Group, whose broad lineup of companies include technology giant LG Electronics, will invest a record amount of 20 trillion won (about $19 billion) this year as it looks to make a fast start in new business areas.
This year's investment budget represents a 19 percent increase from the 16.8 trillion won in 2012 to build more manufacturing lines, strengthen research and development (R&D) activities and possibly even fund mergers and acquisitions (M&As).
LG is banking heavily on the nascent market of organic light emitting diode (OLED) displays as well as long-term evolution and devices that support the mobile technology.
About 14 trillion won will be used to expand factory lines, compared to the 11.8 trillion won invested in facilities last year.
Technology affiliates led by LG Electronics and LG Display will provide 14 trillion won while the group's chemical affiliates LG Chem and LG Hausys will invest 3.5 trillion won. Telecommunications unit LG Uplus is going to invest 3.1 trillion won on advanced networks.
''Chairman Koo Bon-moo is determined to develop new technology ahead of rivals,'' said group spokeswoman Kim Min-jeong.
LG affiliates will hire 15,000 new employees this year, similar to the number it added to payrolls last year. Investment in OLEDs will help LG gain a competitive advantage over Samsung Electronics in a number of markets, group officials said.
LG Display, which competes with Samsung for the title of the world's largest liquid crystal display maker, needs to expand its manufacturing lines to meet soaring demand for smartphones and tablets. A lot of this demand is generated by Apple, its biggest customer and producer of the immensely popular iPhones and iPads.
The company will also spend more on next-generation displays like OLEDs using oxide thin-film transistor technologies and flexible displays. LG Innotek will boost its capacity for camera modules, the statement said.
