Press Release

06/15/2004

TIME magazine features LG Electronics as the next big player in the Electronics Industry

Seoul, Korea June 16, 2004 - TIME, in its June 21st issue, featured LG Electronics CEO S.S. Kim as a leader in innovative management. The magazine indicated LGE as the next big player, and intensively highlighted LGE's global business operations, management innovation cases, and S. S. Kims management philosophy.

Seoul, Korea June 16, 2004 - TIME, in its June 21st issue, featured LG Electronics CEO S.S. Kim as a leader in innovative management. The magazine indicated LGE as the next big player, and intensively highlighted LGE's global business operations, management innovation cases, and S. S. Kims management philosophy.

TIME, at the outset, dubbed CEO S. S. Kim as a Man of the People. The magazine likewise cited the reasons for LGE's remarkable growth over the last 2 or 3 years namely field management, state-of-the-art technological and design prowess, and global marketing strategy. The piece also highlighted CEO Kim's management philosophy and leadership.

TIME also noted that in recent years, amid Sony and other global electronics makers struggling, LGE posted a surprising 18% sales growth and a 33% net profit growth.

In addition the 6-sigma campaigns and tear-down and redesign campaigns led by CEO S.S. Kim are the secret weapons for LGE to grow over 20% annually. LGE will increase R&D manpower, currently accounting for 40% of white-color staff, to 60%, and aims to rank among global top 3 makers in electronics and telecommunications by 2010.

In particular, TIME noted that in the U.S. market, LGE changed its marketing strategy from a focus on the low end of the market using the Goldstar and Zenith brands and now has its sights set on LG becoming a premium brand. The U.S. environment gives LGE a great opportunity where state-of-the-art digital products such as flat screen TVs and DVD players are filling the nation's living rooms, and with emerging gadgetry, LGE has impressive market coverage.

Also TIME noted that LGE has a 70% share of the U.S. market of set-top boxes of receiving digital satellite TV, and its sophisticated mobile handsets equipped with MP3, digital camera and camcorder features, beat its rivals Nokia and Motorola, becoming the largest supplier of mobile handsets last year to Verizon Communications. LG also sells 43% of all air conditioners in the U.S.

In the article, Lisa Smith, general manager for appliances at U.S. retailer Best Buy commented '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 U.S. market, and the products are popular and continue to gain momentum.'

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. Featured in such a prestigious magazine was CEO S.S. Kim only nine months after he took the post of CEO. Much can be attributed to his previous role as President of LGE's Digital Appliance Company and attaining the world's top position thorough innovative management and successfully launching the LG brand in North America, thus boosting the position of the LG brand.

Furthermore, CEO S.S. Kim, while serving as the president of LGE's Digital Appliance Company, was featured in Business Week as one of Asia's 25 stars as a result of heightening LGE's influence in the global appliance market. The TIME feature was the second such article to put LGE in the spotlight following a #1 placing in the June 21st issue of Business Week's Info Tech 100.

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