build a new culture based on strong innovation' Everyone knew that innovation required extra effort'

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LGE WAY Worldwide
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Volume 2 Issue 4
January 31, 2005

• CEO Message
• Understanding LGE
• LGE WAY
• Global Feature

• CEO Message
• Understanding LGE
• LGE WAY
• Global Feature

• CEO Message
• Understanding LGE
• LGE WAY

• CEO Message
• Understanding LGE
• LGE WAY

CEO Message
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R
ecently our company has received a lot of
positive attention throughout the world.
This reflects how much our corporate image has
improved. However, if our results are
poor this year, that image will also diminish.
Seen from that perspective, we absolutely must
achieve the Global Top 5 and create results even
better than our current targets.

From the Speech to New Executives, 2005
Understanding LGE
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LGE News
LGs T5100 is an example of the push into the
high end market. The phone has a 1.3 mega-pixel
camera, is internet capable, and has a screen
that fully rotates.
LG Electronics received the Grand Prize for the
Transparent Corporate Governance awards, given
out by the top business associations in Korea.
The award is given to Korean firms on the basis
of their transparency, labor-management
relations, social contributions and environmental
friendliness. The award highlights the
effectiveness of three major elements
of the LGE WAYvalue-creating labor-management
relations, trust leadership, and right people.
"After undergoing turmoil in labor-management
relations in the late 1980s, we concentrated on
changing to a more equal relationship between
labor and management," said S.S. Kim, CEO LG. "I
believe transparent corporate
governance was also created in that process." Mr.
Kim was joined by Chang Seok-chun, chief of LG
Electronics' union, at the award ceremony in
Seoul's Shilla Hotel. The award was created to
heighten public trust in domestic conglomerates,
whose murky management practices came under heavy
scrutiny in the wake of the 1997-1998 financial
crisis. The Korea Employers Federation, the
Federation of Korean Industries, the Korea
Federation of Small and Medium Business, the
Korea Chamber of Commerce and Industry, and the
Korea International Trade Association all joined
together to select recipients of the awards.
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A Look at January in LGE History
1982
Jan 1 Goldstar developed the first color video
camera in Korea. The video camera was smaller
than existing models and included automatic color
and brightness adjustors. The camera went into
production that year and filled demand spurred by
the use of VCRs at home. .
1995
Jan. 1 As Lucky Goldstar Group changed its
identity to LG Group, Goldstar also adopted its
current name (LG Electronics) and its new
corporate identity. The smiling symbol depicts
the face of the future, and symbolizes the
world, the future, youth, people, and technology.
The red color symbolizes our friendship with our
customers.
2001
Jan. 5 After one year, 2 million, and the
efforts of 20 researchers, LG Electronics
succeeded in making a VSB chip. This doubly
improved the previous low quality of digital TV
reception by including improved relay channel
speed and an improved channel equalizer. .
LGE WAY
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Our CEO, S.S. Kim, has said that if we are to
achieve the Global Top 3 by 2010, we must
achieve the Global Top 5 this year, in 2005.
Due to the current business environment, we can
only do this through Fast Execution. We must not
only continue what we are currently doing, but
improve on
that by 30. We must not only perform our work
30 faster than last year, but gain 30 more
performance at that faster speed. Finally, all
this must be accomplished with 30 lower costs.
We must incorporate the LGE WAY in all we do,
and then we can achieve the Global Top 5 in
2005. .
DA Company Global Top 1 through We not I
I
n 1989, the DA Company was facing a major crisis
after not only losing US 600 million during
massive labor riots but also losing its number
one spot in Korea to a competing company. The
employees in the DA Company realized that I can
only live if the company lives, and began to
build a new culture based on strong innovation.
Everyone knew that innovation required extra
effort. The employees threw away selfishness,
working longer, harder, and faster to create
innovation that led to a 10-year, 10-fold
increase in productivity per person. Of course
there were opponents to these changes at first,
but opposition quickly disappeared as innovation
began to increase productivity, create more
competitive
Global Feature
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LGEIN To Be the Best in Indonesia

• Full Name
• Location
• Date Established
• Type
• Total Employees

LGE Indonesia Tangerang, Indonesia Nov. 20,
1990 DDM-Production Sales 914
LGEIN has set the goal of becoming the number
one electronics company in Indonesia. They are
working hard with their sister subsidiary, LGEDI,
to achieve this through four key initiatives
Cost Innovation, Manufacturing Site for AFTA,
Market Leadership in Indonesia, and Organization
Culture Innovation. LGEIN was recently recognized
by LG Electronics for its excellent customer
service. The subsidiary produces TVs, air
conditioners, and refrigerators. LGEIN also
sponsors several sporting events, including the
ASEAN Taekwondo Tournament in Indonesia. .
products, reduce defects, and shorten the
production line. All of this allowed the DA
company to not only regain the top spot in Korea,
but also enter the Global Top 3 in 2003. The DA
company is now leveraging its innovation to
challenge the Global Top 1. The DA Company has
set the goal to become the No. 1 appliance
company in the world by 2007. They will be able
to achieve this, but only through a strong We
not I culture. .
Future issues of the LGE WAY Worldwide will
introduce examples of The Ten Principles of
Innovation in Action and LGE WAY case studies.
If you have a great example of one of these,
please share it by writing to lgeway_at_lge.com so
that your success can inspire and motivate other
employees.
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Published by LG Electronics / Corporate Culture
Group Please refer questions, comments, and
suggestions on content to lgeway_at_lge.com