LG Group to Set Aside 3.2
Tln Won in R&D Outlays
Sets target sales worth 92 trillion won

LG Group will channel 10.5 trillion won in R&D and facility investments primarily to its electronics and chemicals divisions during 2006 as part of its efforts to secure key technologies.
The business group aims to raise 92 trillion won in sales in 2006, up 9.5 percent from last year's 84 trillion won. The conglomerate sets its export target at $46.4 billion (some 46.4 trillion won), a 16 percent jump from last year's $40 billion (about 40 trillion won).
LG Group plans to pour 10.5 trillion won into its total investments during 2006, up 100 billion won from last year's. The total target investments break down to 3.2 trillion won in R&D funds, an 18.5 percent surge or an increase of 500 billion won last year and 7.3 trillion in facility investments.
The 2006 business plan is viewed by industry analysts as a reflection of determination by LG Group Chairman Koo Bon-moo, who outlined his plan to beef up R&D management through acquisition of core technologies during his New Year's message.
Specifically speaking, the business group decided to boost R&D investments both for 3G mobile phones and digital multimedia broadcasting (DMB) premium-class products and for the establishment of a profit-taking foundation in such display segment as liquid crystal display (LCD).
In the chemical business area, LG Chem will concentrate it R&D activities on such new growth engine industries as second battery, polyvinyl chloride (PVC), polarizers, displays and high-performance films and new medicines.
In the telecommunication and service sectors, the group plans to strengthen R&D capabilities in next-generation telecommunication services as Triple Play Service, a combination of high-speed international. Internet telephony and broadcasting and broadband convergence network (BcN).
LG Group plans to pour 7.3 trillion win in facility investments in key areas like LCD, plasma display panels (PDP) and second batteries and next-generation telecommunication services in a bid to preempt markets. The facility investments earmarked for the year 2006 were 300 billion won shy of last year's facility investments. Last year, the group poured 3.5 trillion won for the construction of the seventh generation LCD lines in Paju and 660 billion won for the PDP production lines in Gumi.
LG Philips LCD will continue to invest into the existing plant in Gumi and the seventh generational LCD lines in Paju whose mass-production will be launched this month into the construction of the structure for the new TFT-LCD lines.
LG Chem decided to boost investments into projects aimed at enhancing competitiveness of the chemicals sector and information electronics and material projects, including batteries and polarizers.
LG Group will introduce cutting-edge premium products to preempt markets in North Americas and BRICs countries (Brazil, Russia, India and China) in a bid to accomplish this year's sales target of 92 trillion won. nw

LG Group Chairman Koo Bon-moo and group company executives applaud as they usher in the 2006 business year at the LG Twin Tower in Yeouido, Seoul.