LG Corp. Puts Its Heart &
Soul into R&D Activities
Sets aside huge funds and to raise research staffs to 24,500 by next year
LG Group is accelerating its efforts to expand its investments in the R&D sector and increase research manpower.
In order to strengthen its mainstay businesses and explore futuristic growth engines, the conglomerate has decided to invest 7.3 trillion won and increase research staffs from the current 19,500 to 24,500 by the end of next year.
LG executives, including LG Corp. Chairman Koo Bon-moo, agreed to adopt the strategy during a session on the group's research achievements, presided over by LG Corp. Chairman Koo at the LG Chem Technology Research Institute on March 23. Among some 250 attendees were LG Corp. Vice Chairman Kim Yoo-shik, LG Electrics Vice Chairman S.S. Kim, LG Philips Vice Chairman Koo Bon-joon, LG Chem President Kim Ban-seok and LG Electronics CTO Lee Hee-kook.
LG Group will invest a combined 7.3 trillion won in the R&D sector by next year - 3.2 trillion won for this year and 4.1 trillion won for next year - in a bid to strengthen capabilities with the goal of growing into global leaders centering electronics and chemical divisions.
The group is throttling up its bid to secure manpower, an essential factor for strengthening a competitive edge in the R&D sector. To this end, the group will raise R&D staffs from 19,500 researchers, including 8,400 doctorate and master's degree holders, 26 percent to 24,500 researchers, including 11,000 with doctorate and master's degrees by next year. As a result, the portion of the group's research manpower will rise from 16 percent in the early 2006 to 19 percent next year.
'PUT HEART AND SOUL INTO RESEARCH.'LG Corp. Chairman Koo told researchers, "Ever-rising global competition and trends toward the protection of intellectual properties have reawakened the significance of securing key technologies."He called for researchers to "Put their heart and soul into conducting research activities"aimed at providing new values to customers and securing technologies preoccupying markets.
Chairman Koo was quoted as saying he would do his utmost to create an environment to enable researchers to concentrate on research, adding that "it is up to researchers to secure key technologies with the goal of evolving LG into a world-class corporation.
LG Group is beefing up its efforts to build up R&D centers. Last year, the group dedicated an integrated terminal research institute in Gasan-dong, Seoul. LG plans to establish the planned Gasan Integrated R&D Complex designed to conduct research on mobile and digital home appliances by 2007. The group is also working on a project to build a R&D campus in Yangjae-dong, Secho-gu, Seoul by 2008 in a bid to expand R&D infrastructure.
COMPANYWIDE STRATEGIES. LG Group has adopted R&D strategies that vary according to each division. LG Electronics will put its R&D focus on securing a competitive edge by building up a constitution for earning high profits in such core areas as PDP/LCD TV, 3-G mobile phone, convergence DVD recorders and system air-conditioner. The electronics giant will strive to secure technologies differentiating rival companies in business areas like mobile devices, car information/entertainment and home network, while putting more energy into exploring such futuristic business arenas as Post-PC and intelligent robot.
LG-Philips will pour R&D resources into developing LCD image technol ogies for large-size LCD TVs and innovating production process, while LG Innotek Co. will focus on three core technologies on precision, optics and software for mobile and display parts. LG Micron will channel R&D sources into developing innovative LCD parts.
LG Chem will attach R&D priority on developing value-added petrochemical products, new catalysts and processes. The company will change its business structure of new material business division into a high-performance material-oriented one. LG Chem will also focus on such futuristic growth engines as clean energy and advanced display materials.
LG Life Sciences will focus on developing growth hormones, medicines for preventing elderly and adult diseases and bio-medical treatment medicines. LG Household & Health Care Ltd. will strive to explore premium brands, designs and products with differential aromas. nw
LG Corp. Chairman Koo Bon-moo gestures during a session on the group's research achievements at the LG Chem Technology Research Institute on March 23. |