LG Economic Performance - LG Global Site

LG Electronics has helped the company secure sustainable growth due to its diverse management activities.

Financial Performance

As a result of the global economic downturn, the rise in the cost of raw materials and other external factors, 2008 was a difficult year for business across the board. LG Electronics is focusing its efforts not only on the area of production but also on overall management activities in R&D, marketing, service and support to improve productivity and reduce costs. As a result, the global revenue increase of premium products as well as the favorable FX rate attributed to a revenue growth of 18% on the previous year, amounting to KRW 27,638.5 billion. The export sales accounted for approximately 77% of the total revenue, amounting to KRW 21,193.3 billion, and the revenue from domestic sales amounted to KRW 6,445.2 billion.

An operating profit of KRW 1,226.9 billion was recorded, which attributed to the revenue growth in major business areas including mobile devices and LCD/PDP TV.

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Innovation

: LG Electronics is boosting management efficiency in each core sector of its business through general management innovation activities while still promoting sustainable growth. LG Electronics redesigned its production sites using the 6 Sigma Tool, and implemented a "knowledge management" strategy to propagate knowledge created through its innovation activities. LG Electronics also made great progress in R&D thanks to the reinforcement of its core technologies by making the right choices and focusing on its main business sectors. In addition, LG Electronics’ patent strategy, etc. means that its management innovation can be ongoing to help retain its competitive edge in a global market.

Sustainability Report

: We are pleased to present our Sustainability Report, LG's promise for happiness on Earth.; - 2008 Sustainability Report

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