LG Group Reveals Aggressive Investment Plan Scaled at 11.7 Tln Won
- Facility investment to total 8.3 tln won, R&D investment 3.4 tln won

LG Group plans to invest 11.7 trillion won in facilities and R&D projects this year, up 26 percent from last year, group officials said recently.
The group targets to sell 94 trillion won worth of products this year, up 15 percent from last year with exports rising 30 percent from a year earlier.
The group projects its operating profit to reach 4.3 trillion won about the same as last year.
The investment breaks down to 3.4 trillion won in R&D projects, up 42 percent from last year of which more than 60 percent would go to research projects on mobile phones, digital TV, PDP, LCD, information electronic material, and high value-added chemicals, among others, in areas the group plans to enhance its competitiveness now and in the future.
A majority of investment in facilities totaling 8.3 trillion won will be directed to production facilities for such leading products as LCD, next-generation batteries and PDP, among others. The facility investment is up 20 percent from last year.
The group targets to export $39.2 billion this year, up 30 percent from last year, aiming at North American and BRICs markets.
LG finalized its realignment following the separation of the Goldstar Group, taking a number of its affiliates away from the group including the LG-Caltex Oil Refinery Co. and the LG Construction Co., making the group focus now on its major lines of business such as electronics and chemicals, which is the reason why they boosted investment by 26 percent this year.
LG's intensive business plan for this year is aimed at taking over a dominant position in its major business sectors and future growth sectors to become a leading business group in the world backed up by its massive investment this year.
A distinctive feature of the business plan this year is a large hike in investment in R&D projects, up 42 percent from last year focused on research on technology and high value-added products.
The group's chairman, Koo Bon-moo, called for such a massive increase in R&D projects to make the group a first-rate business group in the world. He wanted to achieve the differentiation of its products from others. More than 60 percent of its R&D investment will go to such areas as next-generation digital TV, PDP, TFT-LCD, system airconditioners, information electronics material and high value-added chemicals to secure technologies leading to its dominant market positions.
In the electronics sector, the group will focus on such key products as DMB terminals, smart phones, next-generation core chips for display and the development of high definition TV. The group will concentrate its energy on the development of new products in the areas of digital home appliances, laser storage, and digital AV.
The group has allocated 8.3 trillion won for facility investment this year, up 20 percent from last year. The fund will go to areas to beef up production facilities of its key products including TFT-LCD, PDP, next-generation mobile terminals, second batteries and others.
LG also plans to pour investment in the first stage of the 7th generation TFT-LCD production line being built in Paju by the LG Philips LCD for opening in the first-half of next year with a total fund of 5.3 trillion won. LG also plans to build a production line in its Kumi complex for PDP TV to become a dominant player in its world market next year, along with its project to expand the production facilities for OLED.
The chemical sector will also see investment allocated to boost production of the second batteries and bio-tech products.
LG International will not neglect to invest in oil and gas projects in Oman and China, and other countries in the Middle East this year.
LG targets to increase its sales by 15 percent from last year to 82 trillion won this year, with operating profit projected at 4.3 trillion won the same as last year in consideration of a number of adverse factors such as high oil prices, and the weak dollar, among others. nw