By Kim Yoo-chul
Staff Reporter
Dutch electronics giant Philips may sell more of its stake in LG.Philips LCD (LPL), a joint venture LCD maker, as the company seeks to strengthen its presence in the smaller home appliances market centered around the lucrative healthcare and lifestyle sectors.
``For now, we don’t have detailed plans to reinforce the TV business,’’ Kim Tae-young, CEO of Philips Electronics Korea, said in a meeting with reporters in central Seoul, Thursday.
``We have been changing our business paradigm from a TV maker to a home appliances manufacturer,’’ Kim said, adding that the largest consumer electronics producer in Europe will maintain its strategic partnership in the South Korean joint venture.
The remarks came after Philips unloaded a 13 percent stake in LPL for two trillion won in a block trade a month ago, reducing its holdings in LPL to 19.9 percent.
After the decision, the Dutch company did not rule out the possibility that some of the remaining shares would be sold to strategic investors.
Separately, Kim said Philips will simplify medical, lighting, smaller home appliances and electronics units into healthcare, lighting and consumer lifestyle divisions under the plan of ``Vision 2010’’ aimed at bolstering its presence in the consumer electronics market.
He expressed hope that the restructuring will bring in a maximum of 200 million euros through cost cutting by 2010.
``We will achieve the goal of increasing sales by at least 6 percent annually from 2008 through 2010,’’ the CEO said, noting that Philips will double the portion of eco-friendly products to 30 percent by then.
Asked about possible M&As, he said the company has engaged in such talks with some local and overseas home appliances manufacturers but declined to elaborate.
``Philips is also considering setting up a research and development center in South Korea, but all follow-up measures will come upon the result of the ongoing South Korea-EU free trade talks,’’ Kim said.
South Korea is expected to become the world’s most aged society by 2010 with people over 80 years reaching 15 percent of the population, according to government data. People over 75 incur per capita health expenditures that are five times those spent by people aged 25 to 34.