LG plans record investment in R&D

LG Chairman Koo Bon-moo checks out the thickness and viewing quality of a new LG Electronics TV that uses highly advanced display panels supplied by LG Display, during an internal event at LG Electronics’ research center in Secho, southern Seoul, Thursday. / Courtesy of LG

By Kim Yoo-chul

LG Group plan to invest 6.3 trillion won in hotly anticipated research and development (R&D) projects and new categories.

In a statement, LG said that this estimated spending is regarded as the largest R&D investment ever made by the conglomerate. In 2014, LG spent 5.9 trillion won in

research projects, while it spent 5.4 trillion won on R&D in 2013.

"Our investment plan shows that LG's investment in R&D has actually been accelerating, growing much faster than previous years," said LG spokesman Terry Taekyung Lee, Thursday.

Lee said the spending comes as LG Group technology units are believed to be gearing up to enter new product categories and bring about major revisions to its existing products.

"More notably, a completely-redesigned new LG handset will be released soon. Also, LG will encourage top management of our technology affiliates to boost investment in car batteries, next-generation flexible, transparent displays, Internet of Things and various energy solution technologies. These are the segments that LG identified what's next," said Lee.

The conglomerate also plans to strengthen its patent portfolios to help its affiliates shy away from possible patent disputes in future businesses and for them to possibly collect royalties.

The statement said that LG named 46 new research executives ― 28 from LG Electronics, followed by six from LG Display, eight from LG Chem, six from LG Display, one each for LG Hausys and LG Healthcare, ― increasing the number of total research executives to 370.

"As LG is driving initiatives on research, the new research executives will be given a chance to be promoted to CEO level based on individual performance," said the spokesman Lee.

In accordance with such group-wide priorities, LG employees who developed television platform, plastic OLEDs and high-density car batteries, were awarded by LG Chairman Koo Bon-moo.