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Traded as KRX: 066570 LSE: LGLD
Industry Consumer electronics
Headquarters Yeouido-dong, Seoul, South Korea
Area served Worldwide
Key people Bon-joon Koo
(Vice Chairman and CEO)
Products Computer monitors
Home Cinema systems
CD and DVD drives
Revenue US$ 48.976 billion (2011)
Net income US$ -423.9 million (2011)
Total assets US$ 28.356 billion (2011)
Total equity US$ 11.195 billion (2011)
Employees 91,045 (2011)
Parent LG Corporation
Subsidiaries Zenith Electronics
LG Electronics (Korean: LG전자, KRX: 066570, LSE: LGLD) is a South
Korean multinational electronics company headquartered in Yeouido-dong, Seoul, and a
member of the LG Group chaebol. The company operates its business through five divisions:
Mobile Communications, Home Entertainment, Home Appliances, Air Conditioning, and Energy
Solutions. It is the world's second-largest television manufacturer (after Samsung and
and the world's fifth-largest mobile phone maker by unit sales in the second quarter of
o 2.1 Home Entertainment division
o 2.2 Mobile Communications division
o 2.3 Home Appliances division
o 2.4 Air Conditioning & Energy Solutions division
o 3.1 Smart TVs and apps
4 Advertising and sonic branding
6 Environmental record
7 See also
9 External links
History[edit source | editbeta]
The company was originally established in 1958 as GoldStar, producing radios, TVs,
refrigerators, washing machines, and air conditioners.
The LG Group was formed through the
merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was
derived. The current "Life's Good" slogan is a backronym. Before the corporate name
change to LG, household products were sold under the brand name of Lucky, while electronic
products were sold under the brand name of GoldStar (Hangul:금성). In January 2009 LG was
able to buy the domain name LG.com, for a price reportedly to be more than $100 million,
placing it among the companies who own their two letter brand's domain name.
In 1994, GoldStar gained sponsorship from The 3DO Company to make the first 3DO
Interactive Multiplayer. In 1995, GoldStar was renamed LG Electronics, and acquired the US
electronics company Zenith. LG Solar Energy is a subsidiary formed in 2007 to allow LG
Chem to supply polysilicon to LG Electronics for production of solar cells. In 2008, LG took its
first dive into the solar panelmanufacturing pool, as it announced a preliminary deal to form
a joint venture with Conergy. Under the deal, set to be completed by year's end, LG would
acquire a 75 percent stake in Conergy's Frankfurt solar-panel plant.
LG has produced
camcorders called ARTCAM and DSLRs.
By 2005, LG was a Top 100 global brand, and in 2006, LG recorded a brand growth of
Its display manufacturing affiliate, LG Display, is now the world's largest plasma panel
On December 5, 2012, the antitrust regulators of European Union fined LG Electronics and
several other major companies for fixing prices of TV cathode-ray tubes in two cartels lasting
nearly a decade.
Operations[edit source | editbeta]
LG Electronics has about 75 subsidiaries worldwide. LG Electronics owns Zenith and controls
37.9 percent of LG Display.
Home Entertainment division[edit source | editbeta]
The Home Entertainment division offers Plasma TVs, LCD TVs, PDP
Modules, OLED Panels, USB Memory, Flat Panel Computer Monitors, Home
Theater Systems, Blu-ray Discplayers, DVD Recorders, Super Multi DVD Rewriters, CD±RW,
Notebook PCs, Desktop PCs, MP3 Players.
The Home Entertainment division merged with the Business Solutions Division in October 2010.
Mobile Communications division[edit source | editbeta]
The Mobile Communications division provides mobile communication terminals, personal
computers and communication devices.
LG mobile devices are made for CDMA networks worldwide. LG phones are available also in
unlocked versions that can be used on any GSM network worldwide.
LG sold 116.7 million mobile phones in 2010, corresponding to a market share of 8.4%.
Home Appliances division[edit source | editbeta]
The Home Appliances division manufactures refrigerators, washing machines, stoves,
microwave ovens, vacuum cleaners, compressors, and motors.
Its 2007 sales totaled KRW 11.8 trillion, accounting for 29% of the company's total revenue. The
division's profit was KRW 717.1 billion. About 35% of the company's home appliance revenue
comes from the North American market.
Air Conditioning & Energy Solutions division[edit source | editbeta]
The Air Conditioning & Energy Solutions division makes air conditioners and LED lighting.
Products[edit source | editbeta]
LG Electronics' products include computers, televisions, mobile phones, home
appliances and semiconductors (DRAM, SDRAM and flash memory).
Smart TVs and apps[edit source | editbeta]
LG Electronics introduced their first Internet TV in 2007, originally branded as "NetCast
Entertainment Access" devices. They later renamed the 2011 Internet TV's to “LG Smart TV”
when more interactive television features were added, that enables the audience to receive
information from the Internet while at the same time watching conventional TV
LG's Magic Remote uses Hillcrest Labs' Freespace technology to allow
users to change channels using gestures
and Dragon NaturallySpeaking technology for voice
An LG Direct Drive washing machine
An LG Optimus 3D mobile phone/smartphone
An LG laptop PC
An LG water filter
An LG Smart TV
Advertising and sonic branding[edit source | editbeta]
The mnemonic G♭ E♭ F♭ D♭ E♭ C♭, (MP3 file of sonic logo) was produced
by Musikvergnuegen and written by Walter Werzowa in 2008. The sonic tag has been featured
in commercials and devices and is recognized worldwide.
Sponsorships[edit source | editbeta]
LG Electronics sponsored the English football club Weyside Rovers (Guildford) from 2000 until
2002 and the English football club Fulham F.C until July 2010. LG sponsored the Brazilian
football club Sao Paulo FC from 2001 to 2009, during which time the club were the winners of
the 2005 FIFA Club World Championship. LG currently sponsor theAustralian Football
League team Fremantle Football Club, the Costa Rican football club Liga Deportiva Alajuelense,
the Australian National Rugby League team Cronulla Sharks, and the Argentinian club Boca
LG sponsors the International Cricket Council, the world governing body for cricket. It also
sponsors ICC Awards.
During the period 2001–2003 LG sponsored the snooker Grand Prix.
During these years the tournament was known as the LG Cup.
In 2008 LG became sponsors of the Extreme Sport 'FSO4 Freeze' festival
and in January
2009 LG became a Global Partner and Technology Partner of Formula One.
LG is now an
official supplier to Virgin Racing, as well as Lotus Racing and engine manufacturer
LG sponsors the LG Mobile World Cup texting competition.
LG also sponsors
London Fashion Week and the LG Arena in Birmingham.
They also have sponsored
professional Starcraft 2, Incredible Miracle since 2011
Environmental record[edit source | editbeta]
LG is listed in Greenpeace’s Guide to Greener Electronics where it ranked joint 13th (with
Toshiba) out of 15 leading electronics makers in November 2011, scoring 2.8 out of 10. LG
benefited from having a penalty point lifted from the previous edition (October 2010). The
company was penalised for failing to meet its commitment to make products free of polyvinyl
chloride (PVC) plastic and brominated flame retardants (BFRs) by the end of 2010. All of LG's
mobile phones are now free from PVC and BFRs while other products such as TVs and
notebooks contain PVC/BFR free parts; LG aims to phase these substances out from TVs
monitors and PCs by 2012 and household appliances by 2014.
In the Guide the company scored badly on the Energy criteria, being criticized for setting a weak
target for the reduction of greenhouse gas emissions and not making renewable energy part of
its low carbon strategy. LG scored most points in the Sustainable Operations category with the
company providing take-back for obsolete phones in 52 countries and being in the process of
addressing the issue of conflict minerals. However, the guide warned that LG risks incurring a
penalty point in future editions as it was still being listed as a client of Asia Pulp and Paper
(APP) who have been linked to illegal logging and deforestation in Indonesia.
Choice magazine, in independent tests of popular LG fridge models in 2010, found the energy
consumption in two models was higher than claimed by LG. LG was aware of the problem and
had offered compensation to affected customers.
In 2004, LG made 4A-rated water efficiency
claims for numerous washing machines before they were certified. LG gave undertakings to
the Australian Competition and Consumer Commission (ACCC) to provide appropriate
corrective notices and upgrade and maintain its trade practices compliance program. In 2006,
LG overstated energy efficiency on five of its air conditioner models and was again required to
offer consumers rebates to cover the extra energy costs.