LG Electronics

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LG Electronics Inc.
LG전자
Type Public
Traded as KRX: 066570 LSELGLD
Industry Consumer electronics
mobile devices
home appliances

Vehicle Components
Founded 1958 (GoldStar)
Founders In-Hwoi Koo
Headquarters Yeouido-dong, Seoul, South Korea
Area served Worldwide
Key people Bon-joon Koo
(Vice Chairman and CEO)
Products See products listing
Revenue Decrease KRW 58.140 trillion (2013)[1]
Net income Increase KRW 223 billion (2013)[1]
Total assets Increase KRW 35.53 trillion (2013)[1]
Total equity Increase KRW 12.69 trillion (2013)[1]
Employees 82,000 (2013)[1]
Parent LG Corporation
Website www.lg.com

LG Electronics Inc. (Korean: LG전자, KRX: 066570, LSELGLD) is a South Korean multinational electronics company headquartered in Yeouido-dong, Seoul, and a member of the LG Group, employing 82,000 people working in more than 100 locations around the world. With 2013 global sales of USD 53.10 billion (KRW 58.14 trillion), the company operates its business through five divisions namely: Mobile Communications, Home Entertainment, Home Appliances, Air Conditioning & Energy Solutions, and Vehicle Components.[2] CEO of LG Electronics is Bon-joon Koo, who assumed the role of Vice Chairman of LG Electronics on October 1, 2010. LG Electronics is currently the world's second-largest television manufacturer.[3]

History[edit]

LG Twin Towers where LG Electronics is headquartered

1958–1960s[edit]

In 1958, LG Electronic was founded as GoldStar (Hangul:금성). It was established in the aftermath of the Korean War to provide the rebuilding nation with domestically-produced consumer electronics and home appliances. LG Electronics produced South Korea's first radios, TVs, refrigerators, washing machines, and air conditioners.[4] GoldStar was one of the LG group with a sister company, Lak-Hui (pronounced "Lucky")Chemical Industrial Corp. which is now LG Chem and LG Households.

1970s–1990s[edit]

In 1978, LG Electronics achieved a revenue of USD 100 million in exports, for the first time in its history. Rapid growth by globalization saw the company establish its first overseas production, based in the United States, in 1982. In 1995, GoldStar officially adopted the LG Electronics brand and a new corporate logo. LG Electronics acquired the US-based TV manufacturer Zenith. In 1997, LG Electronics made the world's first CDMA digital mobile handsets and supplied Ameritech and GTE in the US. The company was also awarded UL certification in the US.[5] In 1998, LG developed the world's first 60-inch plasma TV, and in 1999 established a joint venture with Philips – LG Phillips LCD – which now goes by the name LG Display.

2000–present[edit]

LG Electronics plays a large role in the global consumer electronics industry. LG launched the LG Chocolate in 2005 and is the second-largest LCD TV manufacturer worldwide as of 2009. By 2005, LG was a Top 100 global brand, and in 2006 LG recorded a brand growth of 14%.[6] Its display manufacturing affiliate, LG Display, is also currently the world's largest LCD panel manufacturer.[7] In 2010, LG Electronics entered the smartphone industry. Since, LG Electronics continued to develop various electronic products, such as the world’s first 84-inch ultra-HD TV and smart appliances.

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.[8]

Operations[edit]

LG Electronics has 5 business units and more than 110 operations worldwide, employing 82,000 people. LG Electronics owns Zenith and controls 37.9 percent of LG Display.[9]

Products[edit]

LG Electronics' products include televisions, home theater systems, refrigerators, washing machines, computer monitors, and smartphones.[10]

Televisions[edit]

LG 77 4K OLED TV

LG Electronics launched a 55-inch OLED TV in 2013 and 65-inch and 77-inch sizes in 2014.[11][12] 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 programming.[13][14]

In November 2013, a blogger discovered that some of LG's smart TVs silently collect filenames from attached USB storage devices and program viewing data, and transmits the information back to LG's servers and LG-affiliated servers.[15][16] Shortly after this blog entry went live, LG disabled playback on its site of the video explaining how their viewer analytics work and closed the Brightcove account the video was hosted on.[17][18] By December 2013 the page itself was removed from LG's website.

LG's remote uses Hillcrest Labs' Freespace technology to allow users to change channels using gestures[19] and Dragon NaturallySpeaking technology for voice recognition.[20]

Mobile devices[edit]

Mobile[edit]

LG G3 Metal black

LG Electronics manufactures a wide range of smartphones and tablet devices.[21] Other than the G3, LG officially unveiled the curved smartphone, G Flex, on October 27, 2013. LG has released it in South Korea in November 2013, and later announced releases in Europe, the rest of Asia, and North America.[22][23] At Consumer Electronics Show in January 2014, LG announced an U.S. release for the G2 across several major carriers.[24]

Tablet[edit]

In 2014, LG revealed three new additions to the G series of tablets, each which will include LG's Knock Code feature, allowing users to unlock devices with a series of taps. The tablets also feature Q Pair which allows tablets to sync up with a smartphones, and for phone calls and text messages passed on to them in real time.[25]

Smart watch[edit]

LG and Google have announced an Android Wear-based smartwatch which is wearable on June,2014. It was released along with the Samsung Gear Live and Moto 360.[26] In August, 2014, the G watch R which has a round face (similar to the Moto 360) was released.[27]

Home appliances[edit]

LG HOMECHAT

LG manufactures and sells home aplliance products such as refrigerators, washers and dryers, vacuum cleaners, kitchen appliances, and residential air conditioners. In June 2014, LG Electronics also announced the launch of its smart appliances with HomeChat™ messaging service in South Korea. HomeChat™ employs LINE, the mobile messenger app from Korean company 'Naver', to let homeowners communicate, control, monitor and share content with LG’s smart appliances.[28] Users can send simple messages, such as "start washing cycle," in order to control their washing machine.[29]

Sponsorships[edit]

LG Sponsors the German Soccer Team Leverkusen.

In August 2013, it was announced that LG Electronics would sponsor German Bundesliga club Bayer 04 Leverkusen for the next three years with an option to extend for one more year. In the U.S., LG Electronics’ brand and product advertisements can be seen in Dodger Stadium of the Los Angeles Dodgers and Great American Ball Park of the Cincinnati Reds. LG sponsors the International Cricket Council, the world governing body for cricket, and also sponsors ICC Awards.[30] LG also sponsors two Korean professional golf players Ja-young Kim and Bomi Lee.

From 2009 to 2013, LG Electronics sponsored Formula One for 5 years as a Global Partner and Technology Partner of Formula One.[31] until 2013. LG was also an official supplier to Virgin Racing and Lotus Racing team, plus engine manufacturer Cosworth from 2010-2012.[32]

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 the Australian 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 Juniors. LG also sponsors London Fashion Week and the LG Arena in Birmingham.[33]

In addition, 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.[34] LG sponsored the LG Mobile World Cup texting competition.[35]

Environmental record[edit]

LG is listed in Greenpeace’s Guide to Greener Electronics where it ranked 13th (jointly 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.[36]

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.[36]

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.[37] 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.[37]

Proposed USA headquarters[edit]

The Hudson Palisades and Palisades Interstate Park with GWB at left. A LG Electronics USA plan to build a 143 ft (44 m) high-rise that would break the tree line is controversial.

LG Electronics USA has proposed to build a new headquarters in the borough of Englewood Cliffs in Bergen County, New Jersey, including a 143 ft (44 m) tall building that would break the tree line of Hudson Palisades, a US National Natural Landmark.[38][39][40] The company is planning to build an environmentally friendly having received a favorable legal decision subsequently being appealed based upon building height issues.[41] The plan, while approved by the local government, has been met with resistance from the segments of the general public as well as government officials in New Jersey and New York.[42][43][44][45][46][47][48]

Slogans[edit]

  • "LG, Future's Technology" (June 1, 1997 – November 30, 1999)
  • "LG, Digitally Yours" (December 1, 1999 – June 30, 2004)
  • "LG, Life's Good" (July 1, 2004 – present)

See also[edit]

References[edit]

  1. ^ a b c d e "Fortune Global 500 – LG Electronics". Fortune. July 22, 2013. Retrieved December 26, 2013. 
  2. ^ http://www.lg.com/global/about-lg/corporate-information/business-domains . Retrieved on: 2014-08-26.
  3. ^ "LG Aims to Boost Television Market Share With 3-D, Web-Connected Models". Bloomberg. 2011-02-16. Retrieved 2013-07-11. 
  4. ^ http://www.lg.com/global/about-lg/corporate-information/at-a-glance/history
  5. ^ "LG's History". LG's official website. 
  6. ^ [1][dead link]
  7. ^ "LG.com". Retrieved 10 June 2009. 
  8. ^ "Philips, LG Electronics, 4 others fined 1.47 billion Euros for EU cartel". The Economic Times. 5 Dec 2012. Retrieved 5 December 2012. 
  9. ^ "LG디스플레이" (in Korean). Daum. Retrieved 2013-06-22. 
  10. ^ "LG Electronics USA website". LG. 
  11. ^ "LG's 77- and 65-inch Curved 4K Ultra HD OLED TVs are coming to the UK". Pocket-lint. Retrieved 2014-06-26. 
  12. ^ "At LG, More Bendable TVs Lie Straight Ahead". Wall Street Journal. Retrieved 2014-05-28. 
  13. ^ "Smart TV". LG. Retrieved 2013-06-22. 
  14. ^ LG Smart TV – Access the World of Entertainment using the LG Smart TV
  15. ^ DoctorBeet's Blog: LG Smart TVs logging USB filenames and viewing info to LG servers. Doctorbeet.blogspot.fr (2013-11-18). Retrieved on 2013-12-09.
  16. ^ Goodin, Dan. (2013-11-19) Smart TV from LG phones home with user’s viewing habits, USB file names. Ars Technica. Retrieved on 2013-12-09.
  17. ^ view-source:https://web.archive.org/web/20121013005622/http://us.lgsmartad.com/main/main.lge
  18. ^ view-source:http://us.lgsmartad.com/main/main.lge
  19. ^ Engadget.com 26 August 2010. Tim Stevens. Hillcrest Labs brings LG's Magic Motion remote to life, cheekily points out that Sony uses it, too.
  20. ^ Greek, Dinah (2012-01-24). "Dragon brings voice control to smart TVs and set-top boxes". Computeractive. Retrieved 2013-06-22. 
  21. ^ "G3's spec". Phone arena. Retrieved 2014-07-02. 
  22. ^ "LG G Flex appears on the FCC with AT&T-friendly LTE". Engadget. Retrieved 9 March 2014. 
  23. ^ "LG G Flex announced with vertically curved 6-inch 720p screen, 'self-repairing' back cover". Engadget. Retrieved 9 March 2014. 
  24. ^ "LG G Flex coming to AT&T, Sprint, and T-Mobile this winter". The Verge. Retrieved 9 March 2014. 
  25. ^ "LG G pad series". Android central. Retrieved 2014-07-07. 
  26. ^ "Android Wear platform fully unveiled at I/O 2014". Android Authority. Retrieved 2014-06-25. 
  27. ^ "This Is LG's New Round-Face Smartwatch: The G Watch R". Business Insider. Retrieved 2014-08-27. 
  28. ^ "LG HomeChat Gives Life to Your Home Appliances". Air Herald. 2014-06-09. 
  29. ^ "LG launches new smart appliances featuring HomeChat". 
  30. ^ "Commercial Partners of the International Cricket Council (ICC)". icc-cricket.yahoo.net. Retrieved 26 September 2009. 
  31. ^ "The Official Formula 1 Website". Formula1.com. 26 November 2008. Retrieved 10 June 2009. 
  32. ^ LG Extends Formula 1
  33. ^ "London’s first ever snow and music festival strengthens LG’s corporate sponsorship portfolio". Prlog.org. Retrieved 10 June 2009. 
  34. ^ "FSO4 Freeze, Sponsored by LG, Snowboard and Music Festival". Londonfreeze.com. Retrieved 10 June 2009. 
  35. ^ Sang-hun, Choe (27 January 2010). "Rule of Thumbs: Koreans Reign in Texting World". Seoul: New York Times. Retrieved 10 February 2010. 
  36. ^ a b "Guide to Greener Electronics – Greenpeace International". Greenpeace International. Retrieved 16 November 2011. 
  37. ^ a b "CHOICE exposes false energy claims by major fridge manufacturer, LG, for its GC-L197NFS". CHOICE. Retrieved 27 October 2010. 
  38. ^ Former N.J. governors ask LG to rethink plan for high-rise HQ along the Palisades. NJ.com (2013-06-07). Retrieved on 2013-12-09.
  39. ^ LG supporters looking for Gov. Christie's help in fight over high-rise HQ on the Palisades. NJ.com. Retrieved on 2013-12-09.
  40. ^ THE CLOISTERS AND PALISADES | World Monuments Fund. Wmf.org (2013-10-08). Retrieved on 2013-12-09.
  41. ^ Alana Quartuccio (September 3, 2013). "Study Predicts Englewood Cliffs LG Project Will Bring Huge Revenue Boost". Englewood-EnglewoodCliffs Patch. Retrieved October 31, 2013. 
  42. ^ Sullivan, S. P. "Former N.J. governors ask LG to rethink plan for high-rise HQ along the Palisades" NJ.com (June 7, 2013)
  43. ^ Sullivan, S. P. "LG supporters looking for Gov. Christie's help in fight over high-rise HQ on the Palisades" NJ.com (July 3, 2013)
  44. ^ Ma, Myles. "Opponents protest as LG celebrates start of work on Englewood Cliffs headquarters" NJ.com (November 14, 2013)
  45. ^ Byrne, Brendam T.; Kean, Thomas H.; Florio, James J.; and Whitman, Christine Todd "The Threat to the Palisades" (op-ed) New York Times (March 24, 2014)
  46. ^ Associated Press "NJ conservation groups file briefs opposing LG's planned construction on Palisades" NJ.com (April 7, 2014)
  47. ^ Ma, Myles. "Senate advances bill banning tall buildings along Palisades" NJ.com (June 7, 2014)
  48. ^ http://www.nj.com/bergen/index.ssf/2014/06/ny_comptroller_ask_lg_to_consider_shorter_englewood_cliffs_headquarters.html

External links[edit]