LG Corporation

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LG Corporation
주식회사 LG
FormerlyLucky-Goldstar (1983–1995)
TypePublic
KRX: 003550
IndustryConglomerate
Founded5 January 1947; 74 years ago (1947-01-05)
FounderKoo In-hwoi
HeadquartersSeoul, South Korea
Area served
Worldwide
Key people
Koo Kwang-mo
(Chairman and CEO)
Kwon Young-soo
(Vice Chairman)
ProductsElectronics, chemicals, telecommunications, engineering, information technology, power generation
RevenueKRW 156 trillion (2018)
Owners
Number of employees
222,000 (2012)[2]
Subsidiaries
Websitelgcorp.com
Korean name
Hangul
주식회사 엘지
Hanja
株式會社 LG
Revised RomanizationJusikhoesa Elji
McCune–ReischauerChushikhoesa LG
(Formerly)
Hangul
럭키금성
Hanja
樂喜金星
Revised RomanizationLeogki Geumseong
McCune–ReischauerLŏkki Kǔmsŏng
An LG microwave oven
LG's ad campaigns have utilized celebrities such as South Korean pop group Girls' Generation as in this ad for the LG Cookie cell phone in 2010.
LG Side-By-Side Refrigerator (KF-P8903 HLP)

LG Corporation (or LG Group) (Korean엘지), formerly Lucky-Goldstar from 1983 to 1995 (Korean: Leokki Geumseong; Korean럭키금성; Hanja樂喜金星), is a South Korean multinational conglomerate corporation founded by Koo In-hwoi and managed by successive generations of his family. It is the fourth-largest chaebol in South Korea. Its headquarters are in the LG Twin Towers building in Yeouido-dong, Yeongdeungpo District, Seoul.[3] LG makes electronics, chemicals, and telecommunications products and operates subsidiaries such as LG Electronics, Zenith, LG Display, LG Uplus, LG Innotek, LG Chem, and LG Energy Solution in over 80 countries.

History[edit]

LG Corporation was established as Lak Hui Chemical Industrial Corp. in 1947 by Koo In-hwoi.[4] In 1952, Lak Hui (락희) (pronounced "Lucky"; now LG Chem) became the first South Korean company to enter the plastics industry. As the company expanded its plastics business, it established GoldStar Co. Ltd. (now LG Electronics Inc.) in 1958. Both companies Lucky and GoldStar merged to form Lucky-Goldstar in 1983.[5]

GoldStar produced South Korea's first radio.[5] Many consumer electronics were sold under the brand name GoldStar, while some other household products (not available outside South Korea) were sold under the brand name of Lucky. The Lucky brand was famous for hygiene products such as soaps and HiTi laundry detergents, but the brand was mostly associated with its Lucky and Perioe toothpaste. LG continues to manufacture some of these products for the South Korean market, such as laundry detergent.

Koo In-hwoi led the corporation until his death in 1969, at which time, his son Koo Cha-kyung took over. He then passed the leadership to his son, Koo Bon-moo, in 1995. Koo Bon-moo renamed the company to LG in 1995.[5] The company also associates the letters LG with the company's tagline "Life's Good". Since 2009, LG has owned the domain name LG.com.

Koo Bon-moo died of a brain tumor on 20 May 2018.[6] In July 2018, it was announced that Koo Kwang-mo, the nephew and adopted son of Koo Bon-moo, will be the new CEO of LG. Koo Bon-moo adopted his nephew in 2004, after losing his only son in 1994,[7] citing "a family tradition of male-only succession".[8]

Joint ventures[edit]

LG and Hitachi created joint ventures named Hitachi-LG Data Storage in 2000 and LG Hitachi Water Solutions in 2011; among other partnerships it has had, LG has a long relationship with Hitachi dating back to the early years of Goldstar. Since then Hitachi has transferred technologies for LG's products such as radios, wires, TVs, home appliances, semiconductors, etc. The first JV between the two is LG Hitachi, which has been around since 1980s when it was established to import computers to Korea.[9]

LG had two joint ventures with Royal Philips Electronics: LG Philips Display and LG Philips LCD, but Philips sold off its shares in late 2008.[10]

In 2005, LG entered into a joint venture with Nortel Networks, creating LG-Nortel Co. Ltd.

in 2020, LG and Canadian auto supplier Magna International launched a joint venture known as LG Magna e-Powertrain. The new joint venture will manufacture components used in electric cars such as electric motors, inverters and onboard chargers.[11]

International markets[edit]

On 30 November 2012, comScore released a report of the October 2012 U.S. Mobile Subscriber Market Share that found LG lost its place as second in the U.S. mobile market share to Apple Inc.[12]

On 20 January 2013, Counterpoint Research announced that LG has overtaken Apple to become second largest in U.S. market share.[13]

On 7 August 2013, comScore released a report of the June 2013 U.S. Smartphone Subscriber Market Share that found LG fell to fifth place in the U.S mobile market share.[14]

Associated companies[edit]

Structure and financial position[edit]

LG Corporation is a holding company that operates worldwide through more than 30 companies in the electronics, chemical, and telecom fields. Its electronics subsidiaries manufacture and sell products ranging from electronic and digital home appliances to televisions and mobile telephones, from Thin-film-transistor liquid-crystal displays to security devices and semiconductors. In the chemical industry, subsidiaries manufacture and sell products including cosmetics, industrial textiles, rechargeable batteries and toner products, polycarbonates, medicines, and surface decorative materials. Its telecom products include long-distance and international phone services, mobile and broadband telecommunications services, as well as consulting and telemarketing services. LG also operates the Coca-Cola Korea Bottling Company, manages real estate, offers management consulting, and operates professional sports clubs.

Fields of activity Companies 2013 Division revenue (in billions USD)
Holding company LG Corp. US$8.8 billion[15]
Electronic industry LG Electronics
LG Display
LG Innotek
US$55.8 billion[16]
US$25.9 billion[17]
US$5.9 billion[18]
N/A
N/A
Chemical industry LG Chem
LG Household & Health Care
LG Hausys
LG MMA
US$22.2 billion[19]
US$4.1 billion[20]
US$2.6 billion[21]
N/A
N/A
Telecommunication and Services LG Uplus
LG International Corp.
LG CNS
SERVEONE
LG N-Sys
US$11 billion[22]
US$11.6 billion [22]
N/A
N/A
N/A

Group families[23][edit]

Electronics industries[edit]

Chemical industries[edit]

Telecommunications[edit]

Controversies[edit]

Hardware Unboxed manipulation attempt[edit]

In June 2021, the YouTube channel Hardware Unboxed published a video alleging an attempt by a representative of LG to manipulate the review of one of LG's gaming monitors.[24] The representative, in an email shown in the video, attempts to influence the editorial outcome of the review by indicating testing methods and aspects of the display to be followed by the channel. This came a few months after a similar incident between the creators and Nvidia in which Nvidia warned them that if they continue emphasizing on rasterization rather than ray tracing in Nvidia's graphics cards, they would no longer receive review samples.

Sports sponsorship[edit]

LG owns the LG Twins and is the main sponsor of Changwon LG Sakers and a partner of the Texas Rangers.[25]

Brand ambassadors[edit]

References[edit]

  1. ^ a b c Cite error: The named reference https://comp.wisereport.co.kr/company/c1070001.aspx?cn=&cmp_cd=003550 was invoked but never defined (see the help page).
  2. ^ "LG overview". LG corp. Archived from the original on 23 June 2013. Retrieved 7 April 2013.
  3. ^ "Overview". LG Corp. Retrieved on 6 January 2010. "Address: LG Twin Towers, 20 Yeouido-dong, Yeongdeungpo-gu, Seoul 150–721, Korea"
  4. ^ "HISTORY - The Official Site of LG Group". www.lg.net. Archived from the original on 19 November 2008.
  5. ^ a b c Song, Su-hyun. "LG founder bequeaths principle of harmony, sustainable growth". The Korea Herald.
  6. ^ "LG Chair Koo Bon-moo, Who Ran Company for 23 Years, Dies at 73". Fortune. 20 May 2018. Retrieved 29 April 2019.
  7. ^ Kim, Hooyeon; Park, Kyunghee (20 May 2018). "LG Chair Koo Bon-Moo Dies, Leaves Company to Adopted Son". Bloomberg. Retrieved 20 May 2018.
  8. ^ Ji-yoon, Lee (10 July 2018). "The Investor". Retrieved 29 April 2019.
  9. ^ "연혁 : LG히다찌 주식회사". www.lghitachi.co.kr (in Korean). Retrieved 28 September 2020.
  10. ^ LG Display shares drop 5.4 percent on Philips stake sale. Reuters. Retrieved on 11 November 2010.
  11. ^ "LG and Magna announce billion dollar joint venture in electric car gear". www.reuters.com. Thomson Reuters. Retrieved 11 April 2021.
  12. ^ comScore Reports October 2012 U.S. Mobile Subscriber Market Share – comScore, Inc. Comscore.com (30 November 2012). Retrieved on 2013-07-12.
  13. ^ (in Korean) LG Electronics returns to 2nd place in U.S. handset market. Yonhap News (20 January 2013). Retrieved on 2013-07-12.
  14. ^ comScore Reports June 2013 U.S. Smartphone Subscriber Market Share – comScore, Inc. Comscore.com (7 August 2013). Retrieved on 2013-08-14.
  15. ^ "LG CORP (003550:Korea SE): Financial Statements - Bloomberg". businessweek.wallst.com. Retrieved 3 September 2018.
  16. ^ "LG ELECTRONICS INC (066570:Korea SE): Financial Statements - Bloomberg". businessweek.wallst.com. Retrieved 6 September 2018.
  17. ^ "LG DISPLAY CO LTD (034220:Korea SE): Financial Statements - Bloomberg". businessweek.wallst.com. Retrieved 21 September 2018.
  18. ^ "LG INNOTEK CO LTD (011070:Korea SE): Financial Statements - Bloomberg". businessweek.wallst.com. Retrieved 2 October 2018.
  19. ^ "LG CHEM LTD (051910:Korea SE): Financial Statements - Bloomberg". businessweek.wallst.com. Retrieved 22 October 2018.
  20. ^ "Lg Household & Health Care (051900:Korea SE)". businessweek.com. Retrieved 24 April 2014.[permanent dead link]
  21. ^ "Lg Hausys Ltd (108670:Korea SE)". businessweek.com. Retrieved 24 April 2014.[permanent dead link]
  22. ^ a b "Consumer Durable Sector Analysis | Top 8 Consumer Products Companies In India". investyadnya.in. Retrieved 20 December 2018.
  23. ^ LG.com. "Our Businesses - The Official Site of LG Group". www.lgcorp.com. Archived from the original on 25 April 2017. Retrieved 7 April 2017.
  24. ^ "Bribes & Manipulation: LG Wants to Control Our Editorial Direction". Hardware Unboxed. 11 June 2021.
  25. ^ "Texas Rangers, LG Twins announce partnership agreement". Major League Baseball. 21 February 2018. Retrieved 22 June 2019.