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Press Release

05/11/2005

LG Electronics Begins Full Operation of Global Service System

- Structures a service system in 40 countries worldwide

- Structures a service system in 40 countries worldwide
- Applies IPCC(Internet Protocol Contact Center) and operates an integrated
call center by region to strengthen service capabilities
- Establishes 3G phone service centers and strengthens other service functions
for premium products
- Applies cutting-edge service management systems like Service Performance Index
(SPI), Global Parts Supply Chain Management (GPSCM), and video telephony system
- Offers and strengthens service education including education for local service engineers

May 11, 2005, Seoul, Korea - LG Electronics (CEO: S. S. Kim / 06657.KS) has established a global service system aimed at strengthening its product service competitiveness in various countries around the world.

LG Electronics has established service centers in its overseas sales subsidiaries in 36 countries. Likewise, the company has a global service system in its 40-nation overseas operations including service subsidiaries in four countries such as the United States, Russia, Ukraine, and Dubai. Its overseas operations include thirteen countries in Europe, eight in Americas, eleven in Asia, three in CIS, four in Middle East and Africa, and China.

Sang-Yong Lee, Vice President of Customer Service Operation of LG Electronics, said, "In 2005, we aim for No. 1 spot in customer satisfaction with electronics products services in 40 countries worldwide. To this end, we will focus on operating integrated call centers and enhancing service competitiveness for premium products, thus securing world's best product service technology."

LG Electronics is set to operate an integrated call center by region, strengthen services for premium products, apply cutting-edge service management systems, and strengthen education for local service engineers.

- Operates an integrated call center by region

To strengthen regional call centers, LG Electronics is poised to integrate call centers in fourteen subsidiaries in Europe into a single call center, and merge various call centers in China into three to four call centers within this year, and incorporate call centers in Central and South America.

In particular, LG Electronics will apply the Web-based IPCC (Internet Protocol Contact Center) method to its integrated call centers. The technology is more advanced than ordinary telephony method (TDM: Time Division Multiplexing).

The method enables one to receive and transmit voice and data simultaneously via the Internet in managing data at the central server, thus boosting service treatment rates drastically and enabling an accurate and speedy response. 

- Strengthens services for premium products

LG Electronics is set to drastically boost its services for strategic products, in particular, such as mobile handsets, plasma TVs, LCD TVs, TROMM washing machines, and side-by-side refrigerators.

As part of this effort, in the second half of this year, LG Electronics will install a 3G phone service center in each of its subsidiaries North America, Europe and Asia where new models are launched, and in preparation for sophisticated 3G mobile handsets.

Alongside this, LG Electronics is individually managing management indices, service centers, service policies, and service methods for premium products such as plasma TVs, LCD TVs, large-capacity TROMM washing machines, system air conditioners, and side-by-side refrigerators. Likewise, for speedy services, the company has mandated a priority treatment of premium products by engineers who will appear on the scene. 

- Applies cutting-edge service management systems

To manage its service systems efficiently in 40 countries and strengthen its service functions drastically, LG Electronics is set to apply Service Performance Index, Global Parts Supply Chain Management, and video telephony system, among other things.

The Web-based service performance index features service-related indices such as time required for repair, time required for rolling out parts, and status of managing appropriate inventories in 40 countries, and these worldwide data are shared in realtime, thus enabling the headquarters to manage operations with ease and swiftly respond to service situations in various countries.

Also, in the third quarter, LG Electronics will develop and install Global Parts Supply Chain Management system whereby the whole procedures of parts are managed from production to installation in end-users' products for the purpose of enhancing parts management efficiency.

This system aims to reflect data on service parts demands in parts production in domestic and overseas plants to produce appropriate quantities and move parts from subsidiaries with excess inventories to subsidiaries with shortfalls of parts, thus boosting parts management efficiency.

In the first half of this year, LG Electronics will expand video telephony systems from subsidiaries in 24 countries to those in 40 countries around the world to reduce costs and boost service management. 

- Strengthens education for local service engineers

To bolster its global service capabilities, LG Electronics holds a service technology strategy conference comprised of regional service experts on products returned, parts operation, call centers, and service center management in Americas, Asia, Middle East & Africa, Europe, and CIS to share know-how.

In addition, to bolster the capability of service personnel mostly comprising those in current chains, LG Electronics will offer education beginning with service engineers in Korea in May, and its subsidiaries in the United States and India are operating their own innovation schools targeting current chains.

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