By Kim Yoo-chul
LG Group, the nation’s fourth-biggest conglomerate, is looking to chalk up double-digit growth in 2011 through spending more on its key businesses in hopes of leaving this year’s struggles behind.
LG announced an ambitious plan Tuesday to rack up a total of 156 trillion won ($136 billion) in revenue next year, up 11 percent from a 2010 estimates of some 141 trillion won.
The group’s cash cow electronics division, which produces mobile phones, displays and home appliances, will strive to reach 97.3 trillion won sales next year, while the chemical division is aiming for 27.3 trillion won.
The target for the group’s telecommunication business, headed by the No. 3 wireless operator LG Uplus, has been fixed at 31.4 trillion won.
``The targets are in tandem with Chairman Koo Bon-moo’s requests for bold investments to regain market share,’’ said a senior LG spokesman, adding the group will aim at business expansion in strategic overseas markets.
The group’s flagship ― LG Electronics ― has failed to yield any satisfactory profits so far this year due to its slow start in the smartphone market and a falling competitive edge in televisions, though the chemical and display-making units fared relatively well.
LG expects to get a record $107.3 billion in overseas sales next year _ up nearly 20 percent from this year’s estimates of around $90 billion. The proportion will be 76 percent of the group’s total revenue forecast.
``The upwardly revised sales target is acceptable but still fails to meet the expectations of the market. Plus, LG needs to gain a firmer momentum to strengthen alternative revenue streams,’’ said Min Chun-hong, an analyst at KTB Investment.
In the statement, LG said that its record investments earmarked for 2011 will play a pivotal role in beefing up its conventional businesses while nurturing fresh ones.
Earlier this month, the company revealed an investment plan of channeling 70 percent of its 21 trillion won budget next year to raise its competitive edge in the electronic business and advanced flat-panel displays.
It is scheduled to spend 16.3 trillion won in capital expenditure and 4.7 trillion won on research and development.
``Solar-cells, light-emitting diode (LED) bulbs and batteries for electric vehicles are our focus,’’ the spokesman said.
To guarantee greater managerial consistency necessary to attain the 2011 targets, Koo didn’t instigate a group-wide reshuffle of CEOs this year.
LG Electronics has brought Koo Bon-joon, a younger brother of Chairman Koo, to lead the world’s No. 2 TV maker. Kwon Young-soo, head of LG Display; Kim Bahn-suk, leader of LG Chem; Lee Sang-chul, chief executive officer at LG Uplus; and Hur Young-ho, CEO of LG Innotek successfully retained their top jobs.