2012 LG Brochure
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Transcript of 2012 LG Brochure
Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader.
LG Electronics 2012 _wish
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USERS GUIDE
What is your
wish?
Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader.
LG Electronics 2012 _wish
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Our lawyers wish to include the following: All LG Electronics products and services mentioned in this publication are the property of LG Electronics.
02 My wish 12 LG’s wish 14 Message from the CEO 18 Four Pilars of Core Strategy22 My wish + LG’s wish 24 Home Entertainment Company 30 Mobile Communications Company 36 Home Appliance Company 42 Air Conditioning & Energy Solution Company48 Wish + New Business 48 Solar Energy 50 Water Treatment52 We wish 54 Environment 56 Global Social Contributions 58 Sports Sponsorships 60 Marketing Campaign & Activity62 Leading the world in Innovation 64 Awards66 Fact & Figures76 Financial Statements
This is a book about wishing. And how one company has been listening to the wishes of people like you.
Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader.
LG Electronics 2012 _wish
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It is a story about how your wishes become the inspiration for our engineers and designers.
And how that inspiration is the very first step in the process of innovation across all of our divisions.
Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader.
LG Electronics 2012 _wish
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As you look through the pages of this book, remember that every product you see began with a wish.
So, from everyone at LG, thank you for your inspiration. And please, never ever stop wishing.
LG is in the wish business. First, we listen to what people dream about the most. Then, we deliver. What do you wish for? Read on. And discover that wishes really do come true.
My wish0302
More natural color and sound that let me feel the power all around me…an endless stream of entertainment…detail, detail, detail…
Smarter life with technology that makes my life more passionate, creative and inspiring…the latest and extreme mobile experience with the fastest speed of connectivity.
Convenience and intelligence to fit busy moms like me…style to make me proud in front of my neighbors…
Cool but soft air that keeps me always feeling fresh and won’t wake me up at night… and worry-free maintenance with ultimate efficiency…
wishLG’s
LG wishes sustainable growth for our company, our employees and our partners, and a sustainable future for our planet. We wish that ourInnovation continues to deliver on people’s needs. And brings new levels of ease, convenience and enjoyment to families around the world.
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Innovation continues
Throughout the past year, I have been privileged to meet many of you around the globe, and I would
first like to express my most sincere thanks to each one of you. Hearing your thoughts and ideas first-
hand has been a key goal of mine since I’ve come on board, and I am confident that we will continue
to have many chances to greet and speak with one another in person in the near future. And it is with
great pleasure that I can say, the more conversations I was able to engage in with friends and colleagues
around the world, the more I felt the surge of optimism for greater things yet to come.
As we face the future unfolding before us, it is imperative that we continue to communicate through
such tight connections. It is the surest possible way for us to sense the changes that may surface,
as well as the interesting opportunities that will surely arise for us to evaluate and attain. In today’s
industry, where even the strongest of all can rise and fall overnight, I once again would like to declare
our dedicated and forward-thinking commitment to improving the lives of our consumers, business
partners, and all of the readers I am communicating with today. By dedicating ourselves to values such
as innovation and product leadership, we will prevail through the challenges of our economic climate and
the aggressiveness of our competitors.
With that said, I continue to urge all of our employees:
“Put progressive thinking first, prepare for the future in advance, and create a culture where we do
things the right way.”
“ I am excited to share with you that
many of our products have truly
captured the hearts and minds of
people around the world”
MESSAGE FROM THE CEO
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There are five essential pillars upon which we will build that future:
Product Leadership
The foundation of a manufacturing company lies in its products. In our industry, that means
offering truly differentiated products that make consumers take notice and say, “This is It!” But
this is only accomplished when everyone onboard—from R&D and design through quality and
marketing—execute with that consumers’ needs in mind. I am excited to share with you that many
of our products, from 3D Cinema TV and LTE phones to the world’s largest capacity refrigerators
and washing machines, have truly captured the hearts and minds of people around the world.
And 2012 promises to deliver even more on the wishes of consumers.
Strong Fundamentals
The more the world changes, the more imperative it becomes that we stay true to the
fundamentals. We will strictly observe the processes that enable us to enhance both productivity
and profitability. We will adhere to ‘Jeong-do Management’ by keeping our promises to all
stakeholders, and pursuing victory in a fairly contested business practices. It is only through
these strong fundamentals that we will continue to grow steadily in all economic and business
environments, whether that may be positive opportunities or unexpected challenges.
Superior Value
What will keep customers turning to us first? The more we can conceive and execute customized
market strategies, the more we will maintain a truly differentiated value proposition that sets
us apart from our competitors. By focusing on the value we offer more than the volume we
derive, we will maintain the long-term trust of customers in every kind of market, and our goal of
sustainable growth will be much easier to attain.
No. 1 Passion, No. 1 Culture
“Passion” I believe, is expressed through one’s actions to achieve what he or she believes in, and
aims to attain. This is not limited to our leaders or the managers that are “out-in-the-field,” but
it pertains to all. I pride myself in being a member of such a company that promotes Passion
as its No 1 virtue, and where this value cultivates creative culture, ultimately leading its people to
business success and more.
Preparation for the Future
To back up our word in product leadership and constantly developing consumer
values, our R&D ensures that we target to be the first mover in the market with new
ideas and products. To make certain that there would not be an under-supported
area, we will be expanding our investment in R&D with continuous efforts in securing
the brightest and the most innovative minds in the industry. Innovative ideas are our
most valuable currency for the future.
2012 Motto
“Put progressive thinking first, prepare for the future in advance, and create a
culture where we do things the right way.”
Once again, thank you for all of your thoughts and valuable input through the past
year. I hope that this can help add to your generous efforts in caring and moving
forward with us as friends, colleagues, business partners, and shareholders of LG
Electronics.
Thank you,
Bon-Joon Koo
Vice Chairman & CEO of LG Electronics
January 2012
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Strong Fundamentals
LG is committed
to being first in the market with solutions that
meet real consumer needs today, and tomorrow. We will
accomplish this in two ways: through innovation that assures our products have an unequivocal competitive advantage in every category where we compete, and by introducing products so unique in their application they create an entirely new
market. There simply is no substitute for
innovation.
Product Leadership
There is nothing
more fundamental to consumer trust than
quality. LG’s Founding Chairman once said: “Even
if there is just one defective product out of 100, the other 99 are likewise defective.” Through a strict observation of our principles, predictable management, and adherence to the true nature of our industry, we will continue to prize—and deliver—quality
above all.
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Preparation for the Future
No.1 Passion, No.1 Culture
Lead, not follow. Not
only in the products we create, but in the way
we nurture and challenge our future engineers, designers
and corporate leaders. We must have the vision today to trust in their vision for tomorrow. And to give them the freedom now to explore new avenues of innovation that will keep LG on the forefront for generations, and will keep our planet a
greener place for us all.
LG guarantees an
ethical workplace that is second to none. Our
people are our company. They don’t just make world-
leading products—they make LG the best corporation in the world. And we owe every one of them a culture of openness and fairness; where competition lives alongside collaboration; and where accomplishment is recognized, applauded and
rewarded.
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Innovation that astounds us. Style that inspires us. And technology that is beneficial to our homes, our families—and our environment. It turns out that we’re both wishing for the very same things! Read on.
wishLG’s
wishMy
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Mesmerizing. It’s LG. Our engineers set out not just to grant your
entertainment wishes—but to surpass them! With a line-
up of fully-immersive products that guarantee an eye-
popping reaction the first time you turn them on. And
that will keep you amazed for years to come.
HOME ENTERTAINMENT COMPANY
OLED TV (EM9600)
Wow.Wish for
CINEMA 3D Smart TV (LM9600)
Step into the future of fully-immersive entertainment. By slimming
down the bezels to negligible levels, CINEMA SCREEN Design
makes you completely immersed in image and makes the TV
perfectly blend into the wall. The advanced Smart TV ecosystem
with the Magic Remote* offers unlimited content and intuitive
control over your Smart TV. See how the smartest one can be the
most beautiful one as well.
Pentouch TV (PM6900)
Smart TV just got smarter. Business, entertainment, education—
LG’s Pentouch Plus function gives you all the interactive
possibilities of ordinary Smart TV, but without the need for a PC
connection. Write, draw and color right on the screen with the
Magic Pen. Access almost unlimited content including Netflix,
Hulu Plus and the brand new 3D World. LG Pentouch TV, a very
smart way to watch!
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OLED* TV (EM9600)
Get ready for THE ULTIMATE
DISPLAY with the world’s most
natural picture quality and advanced
design. 4 Color Pixel combined with
Color Refiner generates more photo-
realistic colors than ever before. It
also boasts infinite contrast with
perfect black and absolute motion
clarity with a blur-free picture. The
Paper Slim design is only 4 mm thick
to blend in with any wall. Naturally.
* OLED: Organic Light Emitting Diodes
* Magic Remote: The new remote control that works through Point and Click. It has additional functions including voice recognition and wheel.
� CES 2012 Innovations Awards and red dot Design Award
� red dot Design Award
IPS Monitors (IPS7W, TM92, D43)
See 3D from a whole new angle. The high resolution and wider
viewing angles of LG IPS* Monitors let everyone enjoy the 3D
experience from almost anywhere in the room. The IPS7W series
offers amazingly life-like 3D images. The TM92 series features LG’s
unique slim bezel CINEMA SCREEN design. And by bringing 3D
to an IPS Panel, the D43 offers the most comfortable 3D viewing
with greater 3D effects. With SUPER+ Resolution*. More features.
Wider angles. Wow!
* IPS: In-Plane Switching. An LCD technology that offers wide viewing angle
* SUPER+ Resolution: A technology that sharpens up blurry edges and enhances dim colors to make image more vivid and realistic
Home Theater System (BH9520TW)
Go beyond sight and sound with 3D you
can actually feel. 3D Sound Zooming
instantly syncs sound with the location and
motion of images on a CINEMA 3D Smart
TV, so you can sense the action literally all
around you. A 9.1 speaker system includes
four Upright 3D speakers that shoot sound
upward, filling every inch of space with hair-
raising, heart-pounding sound.
Smart Upgrader (SP820)
Turn your ordinary TV into something extraordinary! Simply attach
the LG Smart Upgrader and begin to experience the future of
home entertainment right now on your current TV. Choose from
over 1,200 fun, informative and entertaining apps, an amazing
selection of premium content, plus full web browsing and file
sharing capabilities. Now that’s one smart upgrade!
Projector (CF3D)
Another LG innovation—and another advancement
in picture perfect reproduction. The versatile CF3D is
the world’s first Full HD Single Lens Type 3D projector.
That translates into breathtaking brightness levels of
2,500 ANSI-lumens* and a super sharp contrast of
7,000:1. Plus TruMotion that combines Dual Engine
and 3D Auto Calibration technology for incredibly
smooth and natural motion.
Ultrabook (Z330)
It’s easy to get carried away with technology this convenient.
The LG SUPER Ultrabook features award-winning Super
Compact Clutch design in a laptop barely 14.7mm all around,
and weighing a mere 1.2 kg. Plus Super Speed Boot technology
has you up and running in a blazingly fast 9.9 seconds, four
times fast than other laptops. Ultra-slim. Ultra-fast. Ultra-cool.
Bigger. Louder. Faster. The world of
entertainment is more spectacular than
ever. And LG Home Entertainment
Company brings that experience into
consumers’ homes the way it was
meant to be. With more natural color.
More immersive 3D. More all-around
sound. And more on-the-go portability.
LG offers a wide array of innovative
and stylish products—from OLED and
LCD TVs to home theater systems,
projectors and so much more.
No wonder LG is the industry
trendsetter for innovative home
entertainment. Bravo!
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* ANSI-lumens: A measurement of light that has been standardized by ANSI (American National Standards Institute). It is commonly used to rate the brightness of a data projector.
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MOBILE COMMUNICATIONS COMPANY
Blazing. It’s LG.LG’s latest range of smartphones puts full
control of today’s lifestyle at your fingertips.
Groundbreaking technology, stylish design, and
a full slate of features keeps you connected on
the go like never before.
LG Optimus True HD LTE
Whoa.Wish for
LG Optimus 4X HD
The LG Optimus 4X HD proudly reinforces LG’s multi-core
leadership with a powerful Quad-core processor.
The Quad-core processor guarantees blazing lag-free
speed even when handling processor-heavy tasks such as
multiplayer gaming. The distortion-free 4.7 True HD display
is powered by NVIDIA’s latest Tegra3 1.5 GHz processor and
5th Battery Core, all packed inside a super sleek shape that
lets you enjoy HD multimedia anywhere, anytime.
LG Optimus True HD LTE*
The LG Optimus True HD LTE, the world’s first HD LTE
smartphone, delivers a stunning viewing experience. With a
magnificent 4.5 Full HD Touch Screen, the phone boasts a
super-high resolution display and colors that are astonishingly
bright and vivid. The powerful 1.5 GHz dual-core processor
and seamless LTE connectivity also make this phone
impressively quick.
LG Optimus Vu
The LG Optimus Vu brings productivity to whole new levels.
Equipped with LG’s LTE and 5-inch 4:3 aspect ratio IPS display
technology, it offers faster and more efficient tools to manage daily
life. Running on a powerful 1.5 GHz dual-core processor, the LG
Optimus Vu makes viewing documents, books, Internet sites and
multimedia content much more comfortable while every color is
rendered in sharp, vivid, life-like quality.
LG Optimus 3D Max
The LG Optimus 3D Max is the latest incarnation of LG’s ongoing
effort to provide superior portable 3D entertainment. It belts out
amazingly vivid 3D images without the need for 3D glasses on a
4.3-inch NOVA display with improved 520 nit brightness. Thanks
to LG’s prowess in 3D technology, the LG Optimus 3D Max not
only handles standard 3D content beautifully, it also offers 2D-to-
3D conversion with LG’s unique HRZ Engine.
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* LTE: Long Term Evolution. It is a standard for wireless communication of high-speed data for mobile phones and succeed 3G WCDMA/HSDPA/HSUPA (and also CDMA) technology.
LG Optimus L7
One of the L-Style product line-up, the LG
Optimus L7 features an 8.7 mm-thickness
and a premium modern square look via LG’s
floating mass technology. It also boasts the
latest Android 4.0 Ice Cream Sandwich OS
and a largest-in-class 4.3 wide display.
Combining the latest technology and a
sophisticated design, the LG Optimus L7
brings versatility to the mobile experience.
LG T375
Engineered with elegant, slim lines, the LG
T375 presents an upscale design and essential
smart features. Connectivity is optimized with
pre-installed SNS via Wi-Fi, and data sharing
is made ultra-easy with PC drag and drop.
On its 3.2 inch QVGA screen, images appear
with sharp clarity, and the screen’s multi-touch
brings a glimpse of the smartphone experience.
LG Optimus L5
With a large 4-inch screen, the LG Optimus
L5, also from the L-Style series, introduces an
optimized display and error-free input. L-Style’s
unique modern square shape offers exquisite
style, allowing comfortable, one-handed
multi-tasking. The LG Optimus L5 features
the latest Android 4.0 operating system, Ice
Cream Sandwich, as well as NFC Tag & Play
functionality (EU).
The world moves faster than ever. And
LG Mobile Communications Company
is working smarter than ever to keep
you up to speed. With revolutionary
smartphones that offer 4G LTE
technologies and quad-core processors
that take speed to a whole new level.
True HD IPS and 3D displays for
breathtaking images. And LG’s elegant
L-Style design that puts more elegance
in the palm of your hand.
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LG Optimus L3
The LG Optimus L3 delivers a big punch in
a small compact form. This L-Style product
packs the full smartphone experience into a
3.2” wide screen designed for easier reading
and viewing. Its 1,500 mAh battery ensures
longer talk and standby times. And of course,
as an L-Style smartphone, the Optimus L3 has
the beauty to match the brawn.
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Intuitive. It’s LG.We heard your wish for convenience. And we’ve come up
with some very surprising ways to answer that call. In fact,
LG Home Appliance Company has a smarter, fresher and,
we’re proud to say, more stylish line-up of appliances than
any other company in the world. Wish, granted!
HOME APPLIANCE COMPANY
French Door Refrigerator
Wonderful.Wish for
Front Load Washing Machine
Wash more per load, and do fewer loads per day! With LG you get
the industry’s largest washing machine, big enough for the bulkiest
comforters. Plus Inverter Direct Drive* to save energy, TurboWash™
for faster wash and rinse cycle times, and 6 Motion* Direct Drive
technology that combines the right combination of actions for a
wide range of fabrics—from heavy-duty towels to delicate hand-
washables. Wash. Rinse. Relax!
TrueSteam™ Dishwasher
Skip the soaking and scraping that ordinary dishwashers require.
LG’s TrueSteamTM technology uses three dedicated steam cycles
to deliver sparkling clean results. Thanks to its unique built-in
steam generator, the steam is hot enough to dissolve tough food
residue, and gentle enough to remove lipstick stains on delicate
items such as wine glasses. And with Dual Spray, LG’s new
dishwasher takes care of fragile glassware as well as big pots and
pans in a single cycle.
Lightwave Convection and Grill
Crispy, tasty, tender dishes at the speed of light! LG’s Lightwave
Technology uses a multi-heating system that keeps dishes crispy
on the outside, juicy on the inside. And helps make your meals
healthier, too, as Lightwave cooking helps food retain more Vitamin
C while shedding unwanted salt and fat. So you can serve food like
a gourmet chef, while saving time like a smart mom.
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* Inverter Direct Drive: Doing away with its belt and pulley, LG’s Inverter Direct Drive makes the motor hardier and much more efficient. Fewer parts mean quieter operation as well.
* 6 Motion: Different combinations for customized washing of various fabric types. (Swing, Rolling, Tumbling, Filtration, Stepping, Scrubbing)
French Door Refrigerator
Open the door to convenience! Our door-in-door feature puts an extra compartment inside the
main door—open it up for quick and easy access to the drinks and snacks your family enjoys most
often. This smart feature will help you keep everything inside the refrigerator better organized,
easier-to-reach, and help save energy by reducing the times you open the main refrigerator door.
Now that’s out-of-the-box thinking!
KOMPRESSOR FOLLOW ME™
Cleaner. Faster. More hygienic. LG
KOMPRESSOR™, the world’s first dust
compression system, keeps dust from escaping
back into the room. And the KOMPRESSOR
FOLLOW ME™, with its revolutionary Location
Recognition Technology and Active Following
Wheel Technology literally follows you around the
room without pulling on the hose. Less effort,
cleaner home…now that’s LG smart!
Water Purifier
H2O. Simple. Pure. Nothing is better than clean
and clear water. And nothing gets household
water closer to perfect than LG’s CoreCare3™*
system. Along with a unique stainless steel
water tank and regular maintenance with eco-
friendly sterilization kit, your family will enjoy
water that is cleaner and safer—a very refreshing
thought, indeed.
HOM-BOT 2.0
LG’s revolutionary robotic vacuum cleaner just
took another leap forward. The Dual Eye Camera
Sensors help the HOM-BOT navigate floors
more effectively, even around tough obstacles
and odd-shaped furniture. So your home is
cleaned better, faster…and with you barely
having to lift a finger!
Long a global leader, LG Home
Appliance Company created the
world’s first smart home appliances.
Now, LG continues to set the pace and
bring even more insightful, energy-
saving technology into homes around
the world. Beginning with four core
technologies—Linear Compressor*,
Inverter Direct Drive, KOMPRESSOR™,
and Lightwave—we have refined our
line-up even further with Smart Saving
and Smart Convenience.
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* CoreCare3™: Three different core systems, one for water care products, one for air care products and one for massage chairs. Taken together, the system offers customers impressive health care benefits and ease of use.
* Linear Compressor: A unique direct transmission system that minimizes mechanical loss, saves energy, reduce noise and increase durability.
Built-in Appliances
LG has put all of its industry-leading
innovation and design into the My
Signature Kitchen suite of built-
in appliances that are in perfect
harmony with the way you live, cook
and entertain. No matter what your
lifestyle, your kitchen can truly become
the center of your home. Efficient,
fashionable, and on the forefront of
sustainability. Design LG My Kitchen
into the wish list of your next renovation.
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Vitalizing. It’s LG.We heard your wish for HVAC* & Energy solutions that use less
energy, and save you more on utility costs month after month
after month. LG Air Conditioning and Energy Solution Company’s
HVAC offerings redefine efficiency for the entire industry, while
bringing more peace, quiet, vitality and comfort to homes, offices
and buildings of every size.
AIR CONDITIONING & ENERGY SOLUTION COMPANY
Prestige Inverter V
* HVAC: Heating, Ventilating & Air Conditioning
Wish for
Multi V III
High efficiency. Easy installation. Eco-friendly design. LG VRF* technology
is now available for even high-rise buildings! The LG Multi V III increases
efficiency by minimizing energy consumption and offering comfort-on-
demand even in high-rise buildings while affording surprisingly easy
installation. In fact, it’s the most advanced commercial air conditioner
to ever earn the industry’s official CarbonFree™ certification—another
important first from LG!
Hydro Kit
Floor heating, cooling and hot water supply
reach new levels of efficiency with LG’s Hydro
Kit. The advanced heat pump technology
takes advantage of ambient air from other
parts of the building to deliver 360% greater
energy efficiency versus a boiler for overall
lower utility costs. Plus extreme eco-friendly
reduction of CO2 emissions, and easy
installation with a compact modular structure.
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Mmmmm.
Deluxe Inverter V
Pure health. Perfect comfort. Supreme quiet.
The Deluxe Inverter V boasts 15% moisturizing
improvement, emitting over 2 million ions water
droplets, eliminating the negative effects of dried
out air while delivering deep, revitalizing moisture
to your skin. Plus a Plasmaster Ionizer that kills
99.9% of bacteria in the air, all delivered in a unit
with a low 19dB noise level. Keep cool. Sleep
quiet. Feel refreshed.
Prestige Inverter V
74% energy saving. Industry-leading cooling and hearing efficiency. And the absolute lowest
sound levels possible in sleep mode. Not to mention LG’s unrivaled Plasmaster ionizing
technology that not only sterilizes air going through the air conditioner, but also cleans harmful
substances, allergens and odors surrounding the unit. Cool. Clean. Quiet. No wonder the Prestige
Inverter V is a leading choice for year-round comfort.
* VRF: Variable Refrigerant Flow. A technology introduced as a system to minimize efficiency losses found in conventional HVAC systems and provide sustainable energy benefits.
LG Centrifugal Chiller
Now, even large size buildings
and industrial facilities can
take advantage of LG’s high-
performance chiller technology.
The high-efficiency compressor will
help large-scale operations realize
significant energy savings while
reducing maintenance worries with
proven LG reliability. And advanced
Eco-friendly refrigerants mean that
buildings are doing their part for a
sustainable future.
LG LED Bulb 14W
The Omni-directional LG LED Bulb 14W
will change the light quality of your home
at the flip of a switch. Make full use of the
bulb’s natural light and long life anywhere,
including front door, bedroom, kitchen and
bathroom. Enjoy up to 80% energy savings
compared to 60W incandescent bulb, and
a lifetime of 25,000 hours.
Control System
Finally, you’re in total control of HVAC usage.
From easy-to-use home networks that save on
electricity bills, to the incredible AC Manager
that can control up to 8,192 indoor facilities,
LG offers total flexibility in centralized control
system management. Set it for optimal indoor
temperatures in all weather, maintain steady
levels of energy use, and prevent sudden
outages in periods of over power use. Cool!
From the very first air conditioner
sold in Korea, to over 100 million
units sold around the world, LG Air
Conditioning and Energy Solution
Company is a long-standing global
leader in making homes comfortable.
Our innovative HVAC solutions and
energy management can transform any
type, style and size of interior space,
residential or industrial. The result: safer
and greener solutions for the way we
live today. And tomorrow.
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LG LED PAR 16 7W
LG LED PAR 16 7W Lamp puts your home’s
art work in a better light! Not only will it
bring out all the wonderful color of pictures
and objects without flickering, it can save
more than 80% on energy versus halogen
lamps. And save you trips up the ladder, as
well—the PAR 16 lasts up to 40 years even
when operated 2.7 hours a day! Longer life.
Less energy. Simply brilliant!
New Growth
Clean. Renewable. Affordable. Solar energy is the power of choice for the world’s future. And it will be a powerful engine of growth to sustain our company well into the 21st Century.
A future built on years of experience
No other company is better positioned to lead the world in renewable
energy. The engineers of both LG Electronics and LG Chem have been
conducting groundbreaking research for the past 20 years, well before
most companies even conceived of solar as a viable commercial prospect.
Add those decades of insight to a half-century designing and building
world-renowned electronics for homes and businesses of all sizes, and it is
easy to see why LG is a company the rest of the industry will be following
for years to come.
Products built for today…and tomorrow
LG has committed all of it resources to building solar products that meet
today’s real-world needs. Our residential, commercial and utility-grade
modules are built with the industry’s most reliable materials to our unique
design specifications. They are then tested through an unprecedented
process of quality assurance—an evaluation so rigorous, we offer a 10-year
product warranty, plus a linear performance warranty that guarantees a
minimum power output of 80.2% up to 25 years.
The world’s first Carbonfree module
But don’t just take our word for it—LG’s MonoX™* solar modules are the
first in the world authorized to display the Carbonfree Certified® Label. This
certification comes after an independent Life Cycle Assessment, taking
into account everything from the raw materials used to the end user
experience. And all MonoX™ modules are designed to satisfy customer
need for easy installation and maintenance.
Reliable, renewable, affordable energy that won’t harm our atmosphere—
it’s another way that LG is fulfilling the world’s wish for a cleaner, more
sustainable future.
LG has committed itself to leading the world in new ways to generate clean, sustainable energy to all communities…
SolarEnergy
Wish for sustainable solar energy
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Wish + New Business
* MonoX™: The brand name of LG’s high efficiency mono crystalline solar module
Growth
Clean water is a human essential. And LG, through three pioneering divisions, is developing the technologies and infrastructures needed to see that pure water continues to be available to communities around the world.
Developing the most advanced nano technology
LG Electronics, by utilizing LG Group’s expertise in chemical, mechanical and
electronic technologies, has been at the forefront of efficient and eco-friendly
membrane development. By converging three core nano technologies—fine
patterning, resin formulation and resin mixing—we have been able to develop
unique membrane processes applicable to many different types of raw water
found around the world. And, since 1994, we have been fully compliant with global
environmental regulations such as RoHS* and Halogen Free. So that we are not just
providing cleaner water, we are also assuring a cleaner planet in the process.
Engineering better solutions for clients
LG has partnered with the Hitachi Group to create LG-Hitachi Water Solutions,
a company aimed at providing world-class solutions to businesses in need
of effective water treatment. By combining the global business, research and
technological expertise or these two great corporations, LG-Hitachi Water Solutions
is quickly becoming a leader in engineering, procurement and construction of water
treatment facilities. From the delivery of ultrapure drinking water to the purification
of industrial & municipal waste water, the company is ready to design and build
advanced water treatment plants in Korea, and around the world.
Simplifying the complex issue of water infrastructure
The operation and maintenance of water treatment facilities is a complex
undertaking. It requires up-to-the minute knowledge of both technological and
environmental issues. LG operates its HiEntech division to offer a full range of
services to the industry, from sophisticated infrastructure development through
highly-trained manpower. It is our goal that facilities are run with the same concern
for our clients’ needs, and for the safety and welfare of their customers and
communities, that is consistent with LG’s long-standing global reputation.
By working together, sharing knowledge, and staying true to our values, LG’s water
treatment divisions are committed to making one very basic and global wish come
true: that people everywhere have access to clean water every single day.
Water Treatment
Wish for clean water
5150
New * RoHS: The restriction of the use of certain hazardous substances in electrical and electronic
equipment adopted in February 2003 by the European Union
… And to providing pure, potable water that will supply the world’s needs well into the future.
We wish to maintain our hard-earned reputation for bringing added value to the lives of consumers. We wish that our investments in sustainability, sports, and community causes bring health, prosperity and joy to our friends and neighbors around the world.
wishWe5352
Products people are proud to own
Greenovation comes home! Our Smart
Appliances have already been helping
consumers save on energy costs,
and we are continuing to invest in the
technologies that will keep our products
on the forefront of sustainability. So
consumers can point out with pride how
they are doing their part for the planet
right inside their homes.
Encouraging our partners to be green
Green work is teamwork! Our Green
Program, first begun in 2005, has been
helping and supporting our suppliers
to create their own green management
systems. In 2010, we developed it into
Green Program Plus, expanding the
scope of our support across our far-
reaching green business ecosystem.
Recyclable packaging and products
We’re not wasting any opportunity to
help keep communities green. E-waste,
that is! So we are working with local
service providers, recyclers, and NGOs
around the world to implement take-
back programs that comply fully with
e-waste regulations in each country.
And we have been increasing the use of
recycled materials in all of our products
and packaging.
A commitment to reduce Green
House Gas Emissions
A record to be proud of! For
three consecutive years, LG has
been the No.1 company for Green
Management as designated by
the Carbon Disclosure Project
of Korea. But we’re not stopping
there. We aim to reduce 30
million tons of GHG emissions at
the manufacturing and product
usage stage in 2020, comparing
to 2007 emissions. And we
have been expanding our low
carbon management to the whole
value chain, including logistics
and procurement as well as
employees’ business travels.
Growing greener businesses
Yes, green can be good for
business as well as for the planet.
We have spent several decades
investing in the R&D necessary
to lead the next generation of
green enterprise: LED lighting,
solar power, electric vehicles, water
treatment and smart grid not
only because they’re good for the
planet—but they will also be good
for our bottom line.
EN
VIR
ON
ME
NT
S
“Greenovation.” The fundamental wish for all innovation that LG includes sustainability as a core value. It’s a wish we’re fulfilling in five key areas: reducing carbon emissions, developing greener businesses, strengthening greener products’ competitiveness, working with our suppliers, and helping to eliminate e-waste around the world. Now that’s a wish that we can all live with!
M
anaging risk
and exploiting opportunities through
Securing
future n
ew b
usin
ess
M
easu
ring r
isk
thro
ugh
incr
easing
climate change mitigation
reso
urc
e ef
fi cie
ncy
Rec
yclin
g R
esou
rces
Low Carbon Management G
reen Busin
ess
Green Partnership Greener P
rodu
cts
Life’s good, when you live green
business partners competitiv
enes
s
Sharing green growth with Strengthening
pro
duct
5554
Energy Star* partner of the year ceremony
6 Motion washing machine, introduced as an eco-friendly product at CES 2012 for its energy saving feature
LG Smart Grid* Showroom
* Energy Star: A joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy to protect the environment through energy efficient products and practices
* Smart Grid: A digitally enabled electrical grid that gathers, distributes, and acts on information about the behavior of all suppliers and consumers in order to improve the efficiency, importance, reliability, economics, and sustainability of electricity services
Tapping into LG technology for global
solutions
Technology has the power to make a
real difference in the world. In 2006 we
developed mobile phones that can read
books for the visually impaired, and
have donated phones every year since
then. In 2011 we launched WeFeedBack,
a Smart TV application that enables
people to make voluntary contributions
to fight world famine. And we build
awareness of poverty everyday through
our on-going SNS campaign.
LG employees making wishes come
true
We couldn’t be prouder! LG employees
around the world continue to devote
countless hours and money to causes
right in their own communities. Global
Volunteer Day, when employees
volunteer to help our environment each
year on World Environment Day; blood
donation drives; LG Hope Schools; and
tree planting activities are just a few of
the ways they support. In Korea alone,
employees have organized Life’s Good
Volunteers, using their talents to benefit
isolated members of their local areas;
LG IT Angels, one-on-one computer
sessions to bridge the information gap
for those with severe disabilities; and
Junior Science Class programs. Thank
you to every LG employee for helping
to make so many wishes come true!
An environment of learning
Welcome to the classroom of
the future! Life’s Green Class is
an innovative and highly mobile
classroom designed by LG, and
dedicated to lessons about the
environment through hands-
on experiments and imaging
technology. After great success
with children throughout Korea,
the program has been expanded
to India visiting more than
70 schools each year. And,
since 2010, LG has sponsored
“Champions of the Earth,”
the United Nations’ flagship
environmental award.
Where hope is more than a wish
For many people, there is no
greater wish than a simple plate
of food. In partnership with the
UN World Food Programme, LG
operates the LG Hope Schools,
providing free school meals
to children in Kenya; LG Hope
Village in Ethiopia, a farmland
reclamation project helping to
improve productivity in local
villages; and LG Hope Family, a
new community improvement
program in Bangladesh and
Cambodia. We also work to
eradicate environmental diseases
such as cholera and typhoid
through the International Vaccine
Institute, and provide aid to
victims of natural disasters.
Here is our fondest wish: that people everywhere can live in a world free of hunger, disease, and poverty. Everyone at LG is proud to support the United Nations Millennium Development Goals, and to partner with other high-profile partners on important projects that raise awareness, provide donations, deliver technology, and encourage volunteer work in communities everywhere. After all, we’re not just a global corporation—we are also concerned citizens of the world.
GLO
BA
L S
OC
IAL
CO
NT
RIB
UT
ION
Fulfilling the dream
5756
LG Hope Screen in Time Square, NYC, US
LG Hope Family in Cambodia
LG Smart TV Charitable App., WeFeedBack
LG Hope Village in Ethiopia
ICC Cricket _Sponsor since 2002
Passion. Few sports create the same
frenzy of excitement like cricket. And
when teams compete for the Cricket
World Cup every four years, entire
countries pause to cheer their national
teams on to victory. It’s the same kind of
passion shared by LG employees for the
challenges they share at work every day,
which is why ICC* Cricket is the perfect
platform to share our products with the
world. Match after match after match.
NCAA _Sponsor since 2009
This sponsorship was a slam dunk! 88
National Championships in 23 different
sports, and a fan base that will stop at
nothing to root their favorite team on.
That’s a lot of cheering over the course
of one year! LG is proud to partner
with the NCAA* and CBS Sports for
an exclusive, fully-integrated campaign
that will put our name on air, in print, in
arenas, online, in stores, and as part of
promotional tie-ins throughout the year.
Formula 1™ _Sponsor since 2009
The most exciting sport on four
wheels is the perfect platform to
showcase LG innovation. After all,
Formula 1 racing and LG products
share the same key elements
that drive the passion of their
fans: sleek style, engineering
excellence, and the will to be first
in the world.
SP
OR
TS
SP
ON
SO
RS
HIP
S
Victory! It’s the one wish that every sports fan has in common. And it’s a feeling that we all share at LG not only as sponsors, but as a global community of fans of many different sports, from car racing to cricket. Which is why we’re doubly honored to sponsor some of the world’s leading organizations.
Life’s exciting, when you win
5958
2011 Formula 1 Petronas Malaysia Grand Prix
ICC Cricket World Cup 2011 in India
Pit exit at the 2011 Formula 1 Petronas Malaysia Grand Prix
* ICC: International Cricket Council
* NCAA: The National Collegiate Athletic Association
LG World Record Campaign
The World Record campaign
recognizes those LG products
that feature World First and World
Best technology, further building
the story of LG as a world leading
technology pioneer. Products are
chosen based on one of three
criteria: first to introduce a new
technology, at least one superior
product spec versus competitors,
or unique position or accreditation
by an external organization.
Beginning from LG Cinema
Screen 3D TV with the narrowest
bezel and LTE Smartphones
with the most numbers of LTE
essential patents, look for the
most innovative products to
receive this special designation in
the coming years.
K-Pop Sponsorship
Music fans were not “Sorry,
Sorry” last November when LG
began working with the groups
Super Junior and f(x) who are
playing big roles of spread on
Korea Wave with their songs.
LG’s sponsorship and promotion
of K-Pop and Korea Wave is
already inspiring legions of fans
in Asia and around the world.
This past year we sponsored the
‘SM Town concert’ that all K-Pop
stars performed in New York City,
brought LGE’s innovative products
experience to ‘MoA (M live Most
Amazing)’ concerts in various
East Asian Countries, in addition
ran numerous ticket promotions,
and brought added value to
fans through Facebook with an
interactive film featuring Super
Junior as brand endorsers.
Cinema Screen TV Marketing
We began our effort to reach premium
customers with ties to celebrities
and governments in key markets.
In Hollywood, LG hold ‘techorator*
marketing’ that offered decorating
service for a power blogger’s house
collaborating celebrity interior
consultant. The Experience Zone also
made an appearance at the Dubai
World Cup horse racing event, and we
helped the government in Kazakhstan
with a campaign meant to convert
consumers in that market to digital TV
standards.
The Dubai World Cup was not the
only sports event to be enhanced with
Cinema Screen 3D TV excitement.
Basketball fans in the US felt it first-
hand with Experience Zones during the
NCAA March Madness tournament,
along with co-promotions with the
leading retailer Best Buy. We invited the
press, retailers and influencers of soccer
in Germany to our product launching
soccer parties in stadiums across the
country.
Sports fans aren’t the only ones who
got to experience the thrill. Cinema
Screen 3D TV is a video gamer’s
dream come true. LG is willing to take
center stage at major game festivals in
nine countries, and to be an exhibition
sponsor at Germany’s Gamescon in
August and Russia’s Igromir in October.
And we installed Cinema Screen 3D TV
in sports pubs for Euro Cup broadcasts
throughout Russia—and inspired fans to
cheer on their team like never before!
The LG Brand is more than the products we sell. It is brand based on adding value to consumers’ lives every single day. It is that same spirit that forms the core of our many marketing efforts. Campaigns meant not merely to inform consumers—but to inspire them to enjoy life more.
MA
RK
ET
ING
CA
MP
AIG
N &
AC
TIV
ITY
Adding value to consumers’ lives
6160
LG World Record Campaign Emblem showcases the company’s product leadership
Performance of Korea’s popular idol group, Super Junior and f(x) who are leading the Korea Wave
Cinema Screen TV marketing through a range of consumer experiences
* Techorator: It’s a mix of Technology & Decorator.
Design consultant who offers counseling of harmony between new electronic products and consumer’s house interior.
LG continues to be honored with Industry Awards around the world. These honors are a reflection of the passion our employees put into every product we create. And they are a reaffirmation of what consumers already know: how LG’s steady stream of world-leading innovation fulfills their fondest wishes for greater comfort, convenience, health and entertainment.
6362
Innov ationLeading the world in
red dot Design Award 2012
- Clothing Management
Cabinet
red dot Design Award 2012
- Dishwasher (Honorable
Mention)
red dot Design Award 2012
- French Door Refrigerator
(Honorable Mention)
2009 & 2010 New Excellent
Technology Award
- Multi V III
red dot Design Award 2011
- European Bottom Freezer
Refrigerator
red dot Design Award 2011
- 24-inch Front Loading
Washing Machine
red dot Design Award 2011
- Lightwave Oven
red dot Design Award 2011
- Canister Type Vacuum
Cleaner
red dot Design Award 2011
- Robotic Vacuum Cleaner
red dot Design Award 2012
- European Bottom Freezer
iF Design Awards 2011
- Convection Oven
2012 CES Innovations Awards
- HOM-BOT 1.O
iF Design Awards 2011
- European Bottom Freezer
Refrigerator
iF Design Awards 2011
- Sidy-by-Side Refrigerator
iF Design Awards 2012
- Side-by-Side Refrigerator
(Material Award)
iF Design Awards 2011
- 24-inch Front Loading
Washing Machine
NTT DoCoMo: LTE Partnership
Special Award
- Optimus True HD LTE
MWC 2012: Best Product
- Optimus 4X HD
2012 CES Innovations Awards
- LG Revolution™
red dot and
iF Design Awards 2012
- Optimus UI 2.0
2011 CES Innovations Awards
- LG Wave™ Top-loading Laundry
Pair with a Full Color LCD Panel
Mobile Choice (UK Magazine):
Most Innovative Device
- Optimus 3D
2011 CES Innovations Awards
- LG ULTRA Capacity
SteamWasher™
2011 CES Innovations Awards
- Steam Dishwasher
red dot Design Award 2012
- BH5320F
red dot Design Award 2012
- PA70G
red dot Design Award 2012
- Ultrabook (Z330)
2011 CTIA’s E-Tech Awards
- LG Revolution™
2011 CTIA’s E-Tech Awards
- LG Thrill 4G
iF Design Awards 2012
- BH5320F2012 CES Innovations Awards
- LG DoublePlay™ (LG C729)
Guinness Record: World’s
First Dual-core Smartphone
- Optimus 2S
red dot Design Award 2012
- LM9600
red dot Design Award 2012
- LM8600
2012 CES Innovations Awards
- PM9700
2012 CES Innovations Awards
- Smart Upgrader (SP820)
red dot Design Award 2012
- M4
red dot Design Award 2012
- PM6900
2012 CES Innovations Awards
- 55LM9600
2012 CES Innovations Awards
- 55LM8600
6564
AWARDS
2012 Edison Awards
- LG CINEMA 3D
(Silver at Content Display Category)
2012 CES Innovations Awards
- Titan™ Front Loading
Laundry Pair
2012 CES Innovations Awards
- French Door Refrigerator with
Blast Chille (Best of Innovations)
6766
Equipment Investment
1,812R&D Investment
2,483
Total
4,295
Korea
35,284Overseas
56,173
Total
91,457
FACT & FIGURES As of 2011_ In Billions of Korean Won
Global revenue, referring to the total revenue of the global subsidiaries’ accounts excluding internal transactions.
COO
CTO
CFO
CHO
Business Support Officer
GMO
Smart Business Center
Corporate Design Center
Quality Center
Corporate Strategic Planning Division
Corporate Business Planning Division
Corporate Audit Division
•
Hom
e En
te
rtainment •
Mobile Communications • Hom
e Applian
ce • Air C
onditioning & Energy Solution •
As of 2011_ In Billions of Korean Won
Vice Chairman & CEO
ORGANIZATION SALES
EMPLOYEES INVESTMENT
2010
55,7542011
54,257
As of 2011_ In Billions of Korean Won
Global revenue, referring to the total revenue of the global subsidiaries’ accounts excluding internal transactions.
Japan 2%
Korea 14%
Europe 15%
North America 23%
China 5%
Central & South America 15%
CIS 6%India 5%
South East Asia 6%
Middle East & Africa 10%
Sales by Region
HE 44%
HA 20%
MC 22%
AE 8%
Others 6%
Sales by Company
LGERS Reynosa••LGESR Riaydh
•LGEYT Yantai
•LGESY Shenyang•LGEQH Qinhuangdao
•LGEND NanjingLGEPN Nanjing / •LGEKS Kunshan•LGEHN Hangzhou
•LGEMX Mexicali
•LGEMM Monterrey
•LGEMA Mlawa
•LGEQD Qingdao
•LGETR Taizhou• LGESH Shanghai
LGETA TianjinLGETL Tianjin / •
LGEHZ Huizhou •
LGEAT Istanbul •
•
•LGECH Beijing
LGESC Amstelveen
•LGESB Jeddah
•LGESK Nairobi
•LGEAO Luanda
•LGEAI Hunstville
LGEME Dubai
•
•LGERI Moscow
Easytec Lagos•
•LGERA Moscow
•LGEAK Almaty
•LGESA Johannesburg
•LGEEG Katameya
•LGEBR Taubate
•LGETH Bangkok
•LGEIN Jakarta
•LGEIL Pune
•LGEIL New Delhi
•LGETH Rayong
LGEQA Qingdao
•
LGEVN Hung Yen•
•LGSI Bangalore
•Triveni New Jersey•Zenith Chicago
•LGEMF Villepinte
LGERD Beijing•
LGEJLTokyo•
LGCRC Shanghai• LGEMR San Diego•
•LGEPS Panama City
•LGEAG Vienna
•LGECI Mississauga
•LGEMS Mexico City
•LGEMU San Diego
•LGEUS Englewood Cliffs
LGEAP Sydney
•LGEML Kuala Lumpur
•LGEPH Manila
•LGESL Singapore
•LGECZ Praha•LGEDG Duesseldorf•LGEFS Paris
•LGELV Riga
•LGENO Oslo•LGESW Stockholm
•LGERO Bucharest
•LGEPT Lisbon
•LGEPL Warsaw
•LGEIS Milano
•LGEHS Athens
•LGEES Madrid
LGEUK London•
•LGETT Taipei
•LGEUR Kiev
•LGEJP Tokyo
•LGETK Istanbul
•LGEMC Casablanca •LGELF Amman
•LGEAS Algiers •LGETU Tunis
•LGENI Lagos
•LGEAF DubaiLGEGF DubaiLGEDF Dubai
•LGEMI Miami
•Guatemala Guatemala City
•LGEPR Lima
•LGECL Santiago
•LGECB Bogota
•LGEAR Buenos Aires
LGEVZ Caracas•
LGEMK Budapest•
LGEHK Hong Kong•
LGEBN Amsterdam
•
•
GLOBAL OPERATIONS
� Marketing
� r & D
� Marketing & ProDuction
� Service
� otHerS
� ProDuction
AMERICA
LGEAI Lg electronics alabama, inc.LGECI Lg electronics canada, inc.LGEMR Lg electronics Mobile research. u.S.a., L.L.cLGEMS Lg electronics Mexico S.a.De c.v.LGEMU Lg electronics Mobilecomm u.S.a., inc.LGEUS Lg electronics u.S.a., inc.Zenith Zenith electronics, L.L.cTriveni triveni Digital, inc.LGEMM Lg electronics Monterrey Mexico S.a.De c.v.LGEMX Lg electronics Mexicalli S.a.De c.v.LGERS Lg electronics reynosa S.a.De c.v.LGEAR Lg electronics argentina S.a.LGECB Lg electronics colombia Ltda.LGECL Lg electronics, inc. chile Ltda.LGEPR Lg electronics Peru S.a.LGEPS Lg electronics Panama S.a.LGEBR Lg electronics de Sao Paulo Ltda.LGEVZ Lg electronics venezuela S.a.Guatemala Lg electronics guatemala S.a.LGEMI Lg electronics Miami, inc.
EUROPE
LGEAG Lg electronics austria gmbHLGEBN Lg electronics Benelux Sales BvLGECZ Lg electronics cZ, s.r.o.LGEDG Lg electronics Deutschland gmbHLGEES Lg electronics espana S.a.LGEFS Lg electronics France S.a.SLGEHS Lg electronics Hellas S.a.LGEIS Lg electronics italia S.p.a.LGEMA Lg electronics Mlawa Sp.z o.o.LGEMF Lg electronics Mobilecomm FranceLGEMK Lg electronics Magyar kFtLGEPL Lg electronics Polska Sp.z o.o.LGEPT Lg electronics Portugal S.a.LGERO Lg electronics romania S.r.L.LGESC Lg electronics european Shared Service center B.v.LGESW Lg electronics nordic aBLGENO Lg electronics norway aSLGEUK Lg electronics united kingdom Ltd.LGELV Lg electronics Latvia, L.L.c
MIDDLE EAST & AFRICA
LGEAF Lg electronics africa Logistic FZeLGENI Lg electronics nigeria Limited.LGEAT arcelik - Lg klima Sanayi ve ticaret a.S.LGEEG Lg electronics egypt S.a.e.LGEGF Lg electronics gulf FZeLGETU Lg electronics north africaLGEAS Lg electronics algeria SarLLGEDF Lg electronics Dubai FZeLGELF Lg electronics (Levant) JordanLGEMC Lg electronics Morocco S.a.r.L.LGEME Lg electronics Middle east co., Ltd.LGESA Lg electronics S.a. (Pty) Ltd.LGESR Lg-Shaker company Ltd.LGETK Lg electronics ticaret a.SEasytec easytec global Services innovation Limited.LGEAO Lg electonics angola Limitada (Limited.)LGESK Lg electronics Service kenya Limited, inc.LGESB Lg electronics Saudi arabis Limited.
ASIA
LGEAP Lg electronics australia Pty, Ltd.LGEIL Lg electronics india Pvt. Ltd.LGEIN P.t.Lg electronics indonesiaLGEML Lg electronics (M) Sdn. BhdLGEPH Lg electronics Philippine, inc.LGESL Lg electronics Singapore Pte, Ltd.LGETH Lg electronics thailand co., Ltd.LGEVN Lg electronics vietnam co., Ltd.LGSI Lg Soft india Private Ltd.LGEJP Lg electronics Japan, inc.LGEJL Lg electronics Japan Lab, inc.
CHINA
LGERD Lg electronics (china) research and Development center co., Ltd.LGECH china Holding companyLGEHK Lg electronics Hk Ltd.LGEHN Lg electronics (Hangzhou) co., Ltd.LGEHZ Lg electronics Huizhou Ltd.LGEKS Lg electronics (kunshan) computer co., Ltd.
LGEND Lg electronics nanjing Display co., Ltd.LGEPN nanjing Lg - Panda appliances co., Ltd.LGEQD Qingdao Lg inspur Digital communication co., Ltd.LGEQH Lg electronics Qinhuangdao, inc.LGESH Shanghai Lg electronics co., Ltd.LGESY Lg electronics (Shenyang), inc.LGETA Lg electronics tianjin appliances co., Ltd.LGETR taizhou Lg electronics refrigeration co., Ltd.LGETT Lg electronics taiwan taipei co., Ltd.LGEYT Yantai Lg inspur Lg Digital Mobile communications co., Ltd.LGCRC Lg electronics (Shanghai) research and Development center co., Ltd.LGETL tianjin Lijie cartridge Heater co., Ltd.LGEQA Lg electronics air-conditioning (Shandong) co., Ltd.
CIS
LGEAK Lg electronics almaty kazakstanLGERA Lg electronics ruS., L.L.cLGEUR Lg electronics ukraine, inc.LGERI Lg alina electronics
6968
TOP MANAGEMENT
Bon-Joon KooVice Chairman & CEO /LG Electronics
Havis KwonPresident & CEO / Home Entertainment Company
Moon-Bum ShinExecutive Vice President & CEO / Home Appliance Company
Jong-Seok ParkExecutive Vice President & CEO / Mobile Communications Company
Hwan-Yong NhoPresident & CEO / Air Conditioning & Energy Solution Company
Woody NamPresident & CEO / China
Jong-Sik KimPresident / Chief Operating Officer
Chris YiSenior Vice President / Brazil
Ki-Wan KimExecutive Vice President / Global Marketing Officer
Stanley ChoExecutive Vice President & CEO / Europe
David JungExecutive Vice President / Chief Financial Officer
Weon-Dae KimSenior Vice President / Indonesia
Ju-U HanSenior Vice President / Quality Center
Sang-Gyu ChoiExecutive Vice President & CEO / Korea Marketing Company
Skott AhnPresident / Chief Technology Officer
Soon KwonSenior Vice President / India
Kun-Pyo LeeExecutive Vice President / Corporate Design Center
Wayne ParkExecutive Vice President / US
James ParkSenior Vice President & CEO / Middle East & Africa
Young-Ha LeePresident / Business Support Officer
Dae-Hyun SongExecutive Vice President / Russia
Ho-Geon HwangSenior Vice President / Chief Human Resources Officer
Board of Directors
Inside
Bon-Joon KooVice Chairman & CEO of LG Electronics / Director
David JungExecutive Vice President & CFO of LG Electronics / Director
Yu-Sig KangVice Chairman & CEO of LG Corp. / Director
Outside
Sang-Hee KimLawyer / Outside Director
Kyu-Min LeeAdvisor of SK Research Institute / Outside Director
In-Ki JooProfessor of Yonsei University / Outside Director
Chong-Nam ChuProfessor of Seoul National University / Outside Director
Audit Committee
In-Ki JooProfessor of Yonsei University / Outside Director
Sang-Hee KimLawyer / Outside Director
Kyu-Min LeeAdvisor of SK Research Institute / Outside Director
7170
7372
GLOBAL PRODUCTION NETWORK CORPORATE MILESTONES
1958• Established as GoldStar
1959• Produced Korea’s first radio
1962• Exported Korea’s first radios to the US and
Hong Kong
1965• Produced Korea’s first refrigerator
1966• Produced Korea’s first black and white TV
1968• Produced Korea’s first air conditioner
1969• Produced Korea’s first washing machine
1974• Listed on the Korea Stock Exchange
1977• Produced Korea’s first color TV
1978• Surpassed USD 100 million in exports, a
Korean industry first
1980• Established first EU sales subsidiary in
Germany (LGEWG)
1982• Established US color TV plant in Huntsville,
Alabama
1984• Surpassed KRW 1 trillion in sales for the first
time
1986• Established European VCR plant in Germany
1988• Established sales and joint venture production
subsidiaries in Thailand
1991• Established design technology center in
Ireland
1993• Established a production and sales subsidiary
in Huizhou, China (LGEHZ), beginning a full-scale advance into the Chinese market
1995• Renamed as LG Electronics• Acquired US-based Zenith Electronics
1997• Developed 40-inch Plasma TV and world’s
first DTV IC chipset• Established India production subsidiary
(LGEIL)
1998• Developed world’s first 60-inch Plasma TV
1999• Co-established LG.Philips LCD (currently LG
Display)
2000• Acquired operations of LG Information &
Communications• Launched world’s first Internet-enabled
refrigerator
2001• Commercialized asynchronous IMT-2000
communications equipment• Launched world’s first Internet-enabled
washing machine, air conditioner, and microwave oven
2002• Demerged into two companies to unlock
shareholder value: holding company LG Electronics Investment (LGEI) and operating company LG Electronics (LGE)
• Commercialized world’s first home network system
2003• Developed world’s first synchronous-
asynchronous IMT-2000 Mobile phone• Developed world’s first 76-inch Plasma TV• Launched world’s first DVD rewriter compatible
with all CD and DVD standards• Led US CDMA mobile phone market for the
first time
2004• Received approval for E-VSB as the next
generation ATSC DTV transmission standard• Launched world’s first 55-inch LCD TV• Commercialized world’s first 71-inch Plasma
TV• Developed world’s first mobile phone with
T-DMB mobile TV reception• Developed home cinema system with wireless
speakers• Led global CDMA mobile phone market for
the first time
2005• Launched world’s first notebook with T-DMB
reception• Launched LG Chocolate, the first phone in the
Black Label Series• Developed world’s first 102-inch Plasma TV• Co-established LG-Nortel, a
telecommunications network equipment venture with Nortel Networks
• Launched mobile phone with S-DMB reception and recording
2006• Launched LG Shine, the second handset in
the Black Label Series• Launched steam washing machine and
interactive TV refrigerator• Developed world’s first 100-inch LCD TV• Launched world’s first full HD (1080p) 102-
inch Plasma TV• Developed world’s first dual-format high-
definition disc player and drive
2007• Launched BH100 Super Blu, the world’s first
dual-format HD disc player• Launched PRADA Phone by LG with advanced
touch interface• Won record number of international design
awards, including 21 iF and 29 red dot Design Award
• Launched 120 Hz full HD LCD TV line• Shipped 15 millionth LG Chocolate Phone• Led US drum washing machine market for the
first time
2008• The 50th Anniversary of LG Electronics• Established new LG Electronics brand identity• Launched LG Secret, the third handset in the
Black Label Series• Released LCD TV Scarlet in 80 nations
simultaneously• Unveiled the world’s first Bluetooth headset
combined mobile phone• Unveiled the world’s first Blu-ray network
storage• Held international environment conference
with UN• Developed the world’s first LTE mobile modem
chip• Recorded over 100 million units of LG air
conditioners in accumulated sales
2009• Became second-largest LCD TV provider
worldwide• Became third-largest supplier of mobile
handsets market worldwide• Became Global Partner and Technology
Partner of Formula One™
2010• Unveiled world’s first and fastest dual-core
smartphone, LG Optimus 2X• Unveiled world’s first full LED 3D TV• Unveiled the new E90 monitor, the company’s
slimmest LED monitor to date at just 7.2 mm in depth
• Unveiled the company’s first ever Real 3D Sound Home Theater System
• Unveiled its latest, groundbreaking creations: the BIGIN, a largest-in-class washing machine with LG’s proprietary 6 Motion Direct Drive; the iPRO, the largest, most energy efficient refrigerator in its class; the world’s first solar Lightwave oven and the world’s first KOMPRESSOR™ vacuum cleaner
2011• Launched water treatment business providing
full-scale planning through total maintenance solutions
• Introduced CINEMA 3D Smart TV combining industry-leading 3D technology and smart TV capabilities
• Unveiled the world’s first smart appliances delivering the consumer benefits of smart savings and smart convenience
• Launched the largest French-door refrigerator in its class offering unparalleled capacity and convenience
• Increased investment in air conditioning solutions delivering a full line-up for residential through large industries
• Introduced LG Revolution™, LG’s first 4G smartphone followed by Optimus LTE, the company’s best-selling 4G smartphone to date.
Region CountRy City SubSidiaRy PRoduCt
North,South& ceNtralamerica
Mexico Mexicali lGemX LCD TV, Monitor
Mexico Reynosa lGerS LCD TV, PDP TV, CRT TV, PDP Module
Brazil Manaus lGeaZ TV, DVD, Audio, Car Audio, Microwave Oven, Air Conditioner
Mexico Monterey lGemm Refrigerator, Oven
Brazil Taubate lGeSP Monitor, Mobile Phone, Laptop, Washing Machine
euroPe Poland Mlawa lGema TV, Monitor
Poland Wroclaw lGeWr Refrigerator, TV
middle eaSt& africa
Egypt Ismailia lGeeG CRT TV, FPD
Turkey Istanbul lGeat Air Conditioner
Saudi Arabia Riaydh lGeSr Air Conditioner
South Africa Johannesburg lGeSa LCD TV, PDP TV, Monitor
aSia India Noida lGeil CRT TV, LCD TV, PDP TV, Monitor, Refrigerator, Air Conditioner, Washing Machine, Compressor, Optical Storage, Mobile PhonePune
Thailand Rayong lGeth Washing Machine, Air Conditioner, Compressor
Vietnam Hung Yen lGeVN TV, Monitor, Mobile Phone, Air Conditioner, Washing Machine
Hai Phong Refrigerator, Microwave Oven, Vacuum Cleaner
Indonesia Bekasi lGeiN LCD Monitor, LCD TV, PDP TV, CRT TV, VCR, DVD-P, VCR, COMBI, REC COMBI, DVD-P, DVD-R, BD-P, BD-Home Theater, DVD-Home Theater, Audio, RefrigeratorTanggerang
chiNa China Taizhou lGetr Refrigerator, Compressor
China Huizhou lGehZ Media, Optical Storage
China Nanjing lGeNd Monitor, LCD TV, PDP TV
China Nanjing lGePN Washing Machine, Motor
China Qinhuangdao lGeQh Casting
China Shanghai lGeSh Security Camera
China Shenyang lGeSY CRT TV
China Tianjin lGeta Microwave Oven, Air Conditioner, Vacuum Cleaner, Compressor, MGT
China Yantai lGeYt Mobile Phone
China Kunshan lGeKS Telematics, Audio
China Hangzhou lGehN Video Cassette Tape, USB, HDD, Prism Sheet
China Qingdao lGeQd Mobile Phone
China Qingdao lGeQa Chiller
ciS Kazakhstan Almaty lGeaK TV, Washing Machine
Russia Ruja lGera TV, Monitor, Refrigerator, Washing Machine
* As of December 31, 2011
To the Board of Directors and Shareholders of LG Electronics Inc.
We have audited the accompanying consolidated statements of financial position of LG Electronics Inc. and its subsidiaries
(collectively the “Group”) as of December 31, 2011 and 2010, and the related consolidated statements of operations,
comprehensive income, changes in equity and cash flows for the years then ended, expressed in Korean won. These financial
statements are the responsibility of the Group’s management. Our responsibility is the express an opinion on these financial
statements based on our audits. We did not audit the financial statements of certain consolidated subsidiaries, whose financial
statements represent 33% and 35% of the Group’s consolidated total assets as of December 31, 2011 and 2010, respectively,
and 57% and 56% of the Group’s consolidated total sales for the years then ended, respectively. These statements were audited
by other auditors whose reports have been furnished us and our opinion, insofar as it relates to the amounts included for those
subsidiaries, is based solely on the reports of other auditors.
We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, based on our audits and the reports of the other auditors, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of the Group as of December 31, 2011 and 2010, and their financial
performance and cash flows for the years ended December 31, 2011 and 2010, in accordance with International Financial
Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”).
Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of
Korea to audit such financial statements may differ from those generally accepted and applied in other countries. Accordingly,
this report is for use by those who are informed about Korean auditing standards and their application in practice.
Seoul, Korea
March 7, 2012
This report is effective as of March 7, 2012, the audit report date. Certain subsequent events or circumstances, which may occur
between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated
financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that
the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.
Report of Independent Auditors
7574
75 Report of Independent Auditors
76 LG Electronics Consolidated Statements of Financial Position
78 LG Electronics Consolidated Statements of Operations
79 LG Electronics Consolidated Statements of Comprehensive Income
80 LG Electronics Consolidated Statements of Changes in Equity
81 LG Electronics Consolidated Statements of Cash Flows
FINANCIAL STATEMENTS
December 31, 2011 and 2010 December 31, 2011 and 2010
LG Electronics Consolidated Statements of Financial Position LG Electronics Consolidated Statements of Financial Position
(in millions of Korean Won) December 31, 2011 December 31, 2010
Assets
Current assets
Cash and cash equivalents 2,345,465 1,944,162
Financial deposits 150,000 85,000
Trade receivables 6,752,559 7,001,962
Loans and other receivables 494,239 525,046
Other financial assets 1,677 1,814
Inventories 4,947,160 5,872,420
Current income tax assets 197,968 154,286
Other current assets 890,388 924,813
Assets classified as held for sale 3,670 5,030
15,783,126 16,514,533
Non-Current Assets
Financial deposits 129,439 105,479
Loans and other receivables 610,709 543,562
Other financial assets 139,282 105,601
Property, plant and equipment 7,290,413 6,500,484
Intangible assets 1,035,797 763,382
Deferred income tax assets 1,246,071 968,751
Investments in jointly controlled entities and associates 5,603,199 6,008,145
Investment property 7,239 7,295
Other non-current assets 813,182 801,267
16,875,331 15,803,966
Total assets 32,658,457 32,318,499
(in millions of Korean Won) December 31, 2011 December 31, 2010
Liabilities
Current liabilities
Trade payables 5,486,871 5,824,392
Borrowings 3,178,212 4,009,229
Other payables 3,780,158 3,730,292
Other financial liabilities 13,860 5,314
Current income tax liabilities 81,643 98,659
Provisions 724,516 748,146
Other current liabilities 949,262 901,201
14,214,522 15,317,233
Non-current liabilities
Borrowings 4,257,406 3,183,706
Other payables 20,490 11,597
Other financial liabilities 378 37,492
Deferred income tax liabilities 15,237 10,253
Defined benefit liability 423,306 318,112
Provisions 575,632 577,697
Other non-current liabilities 3,238 2,772
5,295,687 4,141,629
Total liabilities 19,510,209 19,458,862
Equity attributable to owners of the Parent Company
Paid-in capital:
Capital stock 904,169 809,169
Share premium 3,088,179 2,207,919
Retained earnings 9,499,534 10,108,173
Accumulated other comprehensive loss (326,584) (209,844)
Other components of equity (271,339) (271,277)
12,893,959 12,644,140
Non-controlling interest 254,289 215,497
Total equity 13,148,248 12,859,637
Total liabilities and equity 32,658,457 32,318,499
7776
Years ended December 31, 2011 and 2010 Years ended December 31, 2011 and 2010
LG Electronics Consolidated Statements of Operations LG Electronics Consolidated Statements of Comprehensive Income
(in millions of Korean Won, except per share amounts) 2011 2010
Continuing operations
Net sales 54,256,585 55,753,804
Cost of sales 42,057,595 43,453,096
Gross profit 12,198,990 12,300,708
Selling and marketing expenses 7,201,413 7,534,431
Administrative expenses 1,359,986 1,402,203
Research and development expenses 1,698,917 1,500,792
Service costs 1,595,453 1,775,128
Other operating income 1,622,901 2,009,968
Other operating expenses 1,685,859 1,921,653
Operating income 280,263 176,469
Financial income 574,148 819,747
Financial expenses 922,666 1,039,012
Income (expense) from jointly controlled entities and associates (331,058) 477,322
Profit (loss) before income tax (399,313) 434,526
Income tax expense 33,492 141
Profit (loss) from continuing operations (432,805) 434,385
Discontinued operations
Profit from discontinued operations - 847,734
Profit (loss) for the year (432,805) 1,282,119
Profit (loss) for the year attributable to:
Equity holders of the Parent Company (469,624) 1,226,962
Profit (loss) for the year from continuing operations (469,624) 393,713
Profit for the year from discontinued operations - 833,249
Non-controlling interest 36,819 55,157
Profit for the year from continuing operations 36,819 40,672
Profit for the year from discontinued operations - 14,485
Earnings per share attributable to the equity holders of the Parent Company during the year (in Won)
Earnings per share for profit attributable to the ordinary equity holders of the company (2,880) 7,419
Earnings (loss) per share for profit from continuing operations (2,880) 2,381
Earnings per share for profit from discontinued operations - 5,038
Earnings (loss) per share for profit attributable tothe preferred equity holders of the company (2,563) 7,662
Earnings (loss) per share for profit from continuing operations (2,563) 2,459
Earnings per share for profit from discontinued operations - 5,203
(in millions of Korean Won) 2011 2010
Profit (loss) for the year (432,805) 1,282,119
Other comprehensive income (loss):
Available-for-sale financial assets (3,474) (1,262)
Cash flow hedges (4,717) (38)
Actuarial loss on defined benefit liability (94,056) (46,732)
Currency translation differences (117,633) (32,311)
Share of actuarial loss of associates (11,887) (3,692)
Other comprehensive income (loss) from jointly controlledentities and associates 22,259 (20,200)
Other comprehensive lossfor the year, net of tax (209,508) (104,235)
Total comprehensive income (loss) for the year (642,313) 1,177,884
Comprehensive income (loss) for the year attributable to:
Equity holders of the Parent Company (692,307) 1,123,631
Non-controlling interest 49,994 54,253
Total comprehensive income (loss) for the year (642,313) 1,177,884
7978
Years ended December 31, 2011 and 2010 Years ended December 31, 2011 and 2010
LG Electronics Consolidated Statements of Changes in Equity LG Electronics Consolidated Statements of Cash Flows
(in millions of Korean Won) Attributable to equity holders of the Parent Company
Paid-in Capital
RetainedEarnings
Accumulated Other
Comprehensive Income (loss)
OtherComponents
of EquityTotal
Non-controlling
Interest
Total Equity
Balance at January 1, 2010 3,017,088 9,214,309 (156,886) (270,333) 11,804,178 621,068 12,425,246
Comprehensive Income
Profit for the year - 1,226,962 - - 1,226,962 55,157 1,282,119
Available-for-sale financial assets - - (1,262) - (1,262) 0 (1,262)
Cash flow hedges - - (38) - (38) - (38)
Actuarial gain on defined benefit liability - (46,681) - - (46,681) (51) (46,732)
Currency translation differences - - (31,458) - (31,458) (853) (32,311)
Share of actuarial loss of associates - (3,692) - - (3,692) - (3,692)
Other comprehensive expense of jointly controlled entities and associates - - (20,200) - (20,200) - (20,200)
Total comprehensive income - 1,176,589 (52,958) - 1,123,631 54,253 1,177,884
Transactions with equity holders of the Parent Company
Dividends - (282,725) - - (282,725) (24,900) (307,625)
Change in ownership interest over subsidiaries - - - (957) (957) 4,833 3,876
Changes in scope of subsidiaries - - - - - (439,757) (439,757)
Others - - - 13 13 - 13
Total transactions with equity holders of the Parent Company - (282,725) - (944) (283,669) (459,824) (743,493)
Balance at December 31, 2010 3,017,088 10,108,173 (209,844) (271,277) 12,644,140 215,497 12,859,637
Balance at January 1, 2011 3,017,088 10,108,173 (209,844) (271,277) 12,644,140 215,497 12,859,637
Comprehensive income
Profit (loss) for the year - (469,624) - - (469,624) 36,819 (432,805)
Available-for-sale financial assets - - (3,474) - (3,474) - (3,474)
Cash flow hedges - - (4,717) - (4,717) - (4,717)
Actuarial loss on defined benefit liability - (94,056) - - (94,056) - (94,056)
Currency translation differences - - (130,808) - (130,808) 13,175 (117,633)
Share of actuarial loss of associates - (11,887) - - (11,887) - (11,887)
Other comprehensive income ofjointly controlled entities and associates - - 22,259 - 22,259 - 22,259
Total comprehensive income (loss) - (575,567) (116,740) - (692,307) 49,994 (642,313)
Transactions with equity holders of the Parent Company :
Paid-in-Capital 975,260 - - - 975,260 - 975,260
Dividends - (33,072) - - (33,072) (11,381) (44,453)
Change in ownership interest over subsidiaries - - - (62) (62) 179 117
Total transactions with equity holders of the Parent Company 975,260 (33,072) - (62) 942,126 (11,202) 930,924
Balance at December 31, 2011 3,992,348 9,499,534 (326,584) (271,339) 12,893,959 254,289 13,148,248
(in millions of Korean Won) 2011 2010
Cash flows from operating activities
Cash generated from operations 2,240,468 490,119
Interest received 74,412 67,972
Interest paid (310,460) (232,253)
Dividends received 84,859 76,301
Income tax paid (359,212) (393,622)
Net cash generated from operating activities 1,730,067 8,517
Cash flows from investing activities
Decrease in financial deposits - 195,835
Decrease in loans and other receivables 148,705 221,406
Proceeds from disposal of other financial assets 38,303 98,081
Proceeds from disposal of property, plant and equipment 77,780 321,739
Proceeds from disposal of intangible assets 15,954 2,618
Proceeds from disposal of and recovery of investments in jointly controlledentities and associates 866 210,336
Increase in cash and cash equivalents due to changes in scope of subsidiaries - 798
Decrease in other assets 4,155 9,375
Increase in financial deposits (77,352) -
Increase in loans and other receivables (212,227) (183,362)
Acquisition of other financial assets (91,989) (144,137)
Acquisition of property, plant and equipment (1,830,008) (1,745,219)
Acquisition of intangible assets (319,850) (287,549)
Acquisition of jointly controlled entities and associates (998) (129,693)
Decrease in cash and cash equivalents due to changes in scope of subsidiaries (205,254) (239,632)
Increase in other assets - (399)
Net cash used in investing activities (2,451,915) (1,669,803)
Cash flows from financing activities
Proceeds from borrowings 3,020,490 3,276,962
Issuance of ordinary shares 975,461 1,301
Repayments of borrowings (2,792,295) (1,749,208)
Dividends paid (43,143) (308,292)
Net cash provided by financing activities 1,160,513 1,220,763
Exchange losses on cash, cash equivalents (37,362) (39,102)
Net increase (decrease) in cash, cash equivalents 401,303 (479,625)
Cash and cash equivalents at the beginning of year 1,944,162 2,423,787
Cash and cash equivalents at the end of year 2,345,465 1,944,162
8180
Thank you for spending time with us. And for seeing how LG’s world-leading innovation answers your family’s ( ) for supreme comfort, unprecedented convenience…and 100% eye-popping, jaw-dropping, mind-blowing entertainment. And be assured we’re not stopping here. As long as you keep wishing, we’ll keep working. And finding new ways to make life better for all!
wish LG Twin Towers 20, Yeouido-dong, Yeongdeungpo-gu, Seoul, 150-721, Korea | Tel +82 2 3777 1114 | www.lg.com
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