TIME magazine boosts LG's global competitive edge

This follows on from the company's inclusion in Business Week's Info Tech 100, an annual gauge of the computer industry based on revenue, growth and profits. TIME hailed LG's rise to the top of the consumer electronics industry in its issue dated June 21, describing CEO S.S Kim a 'Man of the People' and a leader in innovative management. The company's marketing, management innovation strategies and Kim's management philosophies won rave reviews and were held responsible for LG's surging market presence.

"The Middle East & Africa region is a strategic market for LG Electronics," said K. H. Kim, President of LG Electronics, Middle East and Africa Operations. "The region contributes significantly to LG's global results and we will strive to bring the latest, cutting-edge solutions to valued customers in the region."

Despite global industry challenges, LG posted an impressive 18 per cent increase in revenues last year to US$17 billion, with a 33 per cent increase in net profits to US $556 million. LG.Philips LCD, a joint venture formed in 1999 with Royal Philips Electronics, was the world's biggest maker of the LCD panels used in flat-screen TVs and monitors in 2003, with a global market share of 22 per cent. Last year, LG was also the world's largest seller of mobile phones operating on the CDMA standard.

The company's six sigma campaigns, field management and focus on design and function have generated a remarkable 20 per cent growth per annum. To augment the company's design and technology prowess, an increase in R&D manpower is currently underway as LG aims to rank among the top three electronics and telecommunications manufacturers by 2010. "LG will invest a total of US$1.95 billion in research and design in the electronics area in 2004, a 21 per cent increase compared with 2003," Mr. K. H. Kim added.

In particular, TIME noted that in the US market, LG has its sights set on becoming a premium brand. The US market gives LG a great opportunity as state-of-the-art digital products such as flat screens and DVD players are filling the nation's living rooms; with its impressive gadgetry, LG is well positioned to capture market share.

LG makes 70 per cent of all set-top boxes for receiving digital satellite TV sold in the US, states TIME, and the company's sophisticated mobile handsets equipped with MP3, digital camera and camcorder features, beat rivals Nokia and Motorola to become the largest supplier of mobile handsets last year to service provider Verizon Communications. LG also sells 43 per cent of all air conditioners in the US but many are sold under OEM brands.

"We began carrying LG refrigerators, washers and dryers last July, and their jazzy designs, such as yellow and blue lights on dryer control panels that look like dashboards, have made them a hit with younger shoppers, and LG has done a fantastic job of raising the bar in the US market, and the products are popular and continue to gain momentum," comments Lisa Smith, GM for appliances at US retailer Best Buy in the article.

TIME, which was inaugurated in 1923, enjoys a circulation of 5.4 million copies in 180 nations around the world, and a readership of 30 million people. To be profiled in such a high-powered magazine nine months into his job as CEO, is no mean feat for LG's S. S. Kim. Much of this success can be attributed to his previous role as President of LG's digital appliance business, where he engineered a turnaround and doubled sales to $US4.7 billion last year. He also undertook LG's successful launch in North America, boosting the company's global brand equity.

One of Asia's top 25 stars, according to the Business Week magazine, S. S. Kim has been lauded for strengthening LG's influence in the global appliance market.