Family-controlled LG Group has announced big investment plans for the coming year. It has outlined a budget of 20 trillion won (€14 billion) for growth and development – a 19.1% increase on 2012’s research and development spending of 16.8 trillion won.
Headed by chief executive Bon-Joon Koo, grandson of founder In-hwoi Koo, LG plans to increase its share in the fiercely competitive electronics market – continuing its battle with the likes of Samsung and Apple for growth.
LG – one of South Korea's famed chaebols – also has subsidiaries in telecommunications and chemical industries, but the lion’s share of the funds (13.4 trillion won) has been earmarked for investment in its electronics division.
In a statement, the company said its plans include expanding production lines to manufacture ultra-high resolution LCDs and organic light emitting diode display panels, known as OLEDs, which provide a sharper image than existing LED technology currently used in most smartphones, computers and televisions. LG will also continue developing its smartphone software and increase production capacity at its manufacturing sites.
Of the remaining cash, 3.5 trillion won will be invested in the corporation’s chemical business and 3.1 trillion in its telecommunications arm.
Find out more about South Korea's chaebols in the next issue of CampdenFB.