LG Electronics
LG전자

Type	Public
Traded as	KRX: 066570 LSE: LGLD
Industry	Consumer electronics Home appliances Telecommunications
Genre	Electronics
Founded	1958
Headquarters	Seoul, South Korea
Area served	Worldwide
Key people	Bon-joon Koo (Vice Chairman and CEO)
Products	Computer monitors Flash memory Televisions Smartphones Tablets Mobile phones DVD players Blu-ray players Home Cinema systems Movie projectors Laptops CD and DVD drives Refrigerators Washing machines Vacuum cleaners Air conditioners
Revenue	US$ 46.82 billion (2011)[1]
Net income	US$ -367.3 million (2011)
Total assets	US$ 27.27 billion (2011)
Employees	36,395 (2011)
Parent	LG Group
Website	www.lge.com www.lg.com

LG Electronics (Korean: LG전자, KRX: 066570, LSE: LGLD) is a multinational electronics company headquartered in Yeouido, Seoul, South Korea. The company operates its business through four divisions: Mobile Communications, Home Entertainment, Home Appliances, and Air Conditioning & Energy Solutions. It is the world's second-largest manufacturer of television sets^[2] and third-largest producer of mobile phones.^[3] It is a flagship subsidiary company of LG Group, one of the world's largest conglomerates.

History[link]

LG Best Shop in Allahabad, India

The company was originally established in 1958 as GoldStar, producing radios, TVs, refrigerators, washing machines, and air conditioners.^[4] The LG Group was formed through the merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym. Before the corporate name change to LG, household products were sold under the brand name of Lucky, while electronic products were sold under the brand name of GoldStar (Hangul:금성). In January 2009 LG was able to buy the domain name LG.com, for a price reportedly to be more than $100 million, placing it among the companies who own their two letter brand's domain name.^[5]

In 1994 GoldStar gained sponsorship from The 3DO Company to make the first 3DO Interactive Multiplayer. In 1995, GoldStar was renamed LG Electronics, and acquired Zenith Electronics of the United States. LG Solar Energy is a subsidiary formed in 2007 to allow LG Chem to supply polysilicon to LG Electronics for production of solar cells. In 2008, LG took its first dive into the solar-panel manufacturing pool, as it announced a preliminary deal to form a joint venture with Conergy. Under the deal, set to be completed by year's end, LG would acquire a 75 percent stake in Conergy's Frankfurt solar-panel plant.^[6] LG has produced camcorders called ARTCAM and DSLRs.^[7]

By 2005, LG was a Top 100 global brand, and in 2006, LG recorded a brand growth of 14%.^[8] Its affiliate, LG Display, is now the world's largest plasma panel manufacturer.^[9]

Operations[link]

LG Electronics has around 75 subsidiaries worldwide. LG Electronics owns Zenith Electronics and controls 37.91 percent of LG Display.^[10]

Home Entertainment[link]

The Home Entertainment division offers Plasma TVs, LCD TVs, PDP Modules, OLED Panels, USB Memory, Flat Panel Computer Monitors, Home Theater Systems, Blu-ray Disc players, DVD Recorders, Super Multi DVD Rewriters, CD±RW, Notebook PCs, Desktop PCs, MP3 Players

The Home Entertainment division merged with the Business Solution Division in October 2010.

Mobile Communications[link]

An LG Optimus 3D mobile phone

The Mobile Communications division provides mobile communication terminals, personal computers and communication devices.

LG mobile devices are made for GSM networks as well as for CDMA networks worldwide. LG phones are available also in unlocked versions that can be used on any GSM network worldwide and not just for a specific carrier's network.^[11]

LG sold 116.7 million mobile phones in 2010, corresponding to a market share of 8.4%.^[12]

Home Appliances[link]

The Home Appliances division provides refrigerators, washing machines, microwave ovens, cleaners, compressors, motors.

Its 2007 sales totaled KRW 11.8 trillion, accounting for 29% of the company's total revenue. The division's profit was KRW 717.1 billion. About 35% of the company's home appliance revenue comes from the North American market.^[13]

Air Conditioning & Energy Solutions[link]

The Air Conditioning & Energy Solutions division makes air conditioners and solar cells.

Products[link]

An LG Direct Drive washing machine

LG Electronics products include computers, televisions, mobile phones, home appliances and semiconductors (DRAM, SDRAM and flash memory).

Smart TVs and apps[link]

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.^[14][15] LG's Magic Motion remote uses Hillcrest Labs' Freespace technology to allow users to change channels using gestures.^[16]

Advertising and sonic branding[link]

The mnemonic G♭  E♭  F♭  D♭  E♭  C♭, (MP3 file of sonic logo) was produced by Musikvergnuegen and written by Walter Werzowa in 2008. The sonic tag has been featured in commercials and devices and is recognized worldwide.^{[citation needed]}

Sponsorships[link]

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 also sponsor the Fremantle Football Club (an Australian Football League team), the Costa Rican football club: Liga de Alajuense, the Australian club National Rugby League team Cronulla Sharks, and the Argentinian club Boca Juniors. In Brazil, LG sponsored Sao Paulo FC from 2001 to 2009, being with the club when they were World Champions in 2005 FIFA Club World Championship.

LG is one of the leading sponsors of Cricket. It sponsors the International Cricket Council, world's governing body for cricket and other cricket tournaments like Cricket World Cup. It also sponsors ICC Awards.^[17]

During the period 2001–2003 the company sponsored the snooker Grand Prix. During these years the tournament was known as the LG Cup.

LG now also sponsors London Fashion Week and the LG Arena in Birmingham.^[18]

In 2008 LG became sponsors of the Extreme Sport 'FSO4 Freeze' festival^[19] and in January 2009 LG became a Global Partner and Technology Partner of Formula One.^[20] This electronics company is now an official supplier to Virgin Racing, as well as Lotus Racing and engine manufacturer Cosworth.^[21]

In addition to this LG in cooperation with local electronics retailer BAKOND and Ministry of Education of Azerbaijan Republic is sponsor of Azerbaijan's most popular intellectual TV Show – LG Knowledge Academy. So far more than 200 000 students from all over Azerbaijan participated in LG Knowledge Academy. In 2009 after huge success organizing committee decided to start second season of game (2009–2010).

LG sponsored the LG Mobile World Cup texting competition.^[22]

Environmental record[link]

LG is listed in Greenpeace’s Guide to Greener Electronics where it ranked joint 13th (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 and LGE aims to phase these substances out from TVs monitors and PCs by 2012 and household appliances by 2014.^[23]

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.^[23]

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.^[24] 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.^[24]

See also[link]

Companies portal

• LG Group (LG Corp.)
• LG Telecom
• LG Display
• Electronics

References[link]

External links[link]

Wikimedia Commons has media related to: LG Electronics

• LG Electronics Global Website
• Specifications for LG Optimus V