will pay a premium price to have a washing machine that makes it unnecessary to iron clothes' This n

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LGE WAY Worldwide
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Volume 2 Issue 13
April 4, 2005
CEO Message
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Proud to work at LG Electronics
We each need pride and loyalty for LG
Electronics. We must have the confidence to say
to anyone I work at LGE. We must be able to
sincerely recommend that our friends and
associates work at LGE. The pride and dignity
of being an LG-ite cannot be seen, but it
gives us the strength to make a Great Company.

RD Vision Pledge Speech, Mar. 2005
Vice Chairman and CEO LG Electronics
LGE Pride
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G1800 Simple, Logical, Functional
LG Electronics has launched the G1800 GSM
cellphone in various markets worldwide. The
feature-packed GSM phone includes an MP3 player
and bright, 16000 pixel screen, but the sleek
(99x45x17 mm) phone also includes several new,
enticing features. It has a built-in 60 MB USB
memory drive, a function to record phone calls
for later playback, and a plethora of ring
sounds. But if you dont like the built-in ring
sounds, you can either select one of the MP3
files you have saved on the phone or compose
your own using a databank of 10 different
instruments. Finally, the phone includes other
logical functions, such as automatic recharging
when plugged into the USB port of a computer. The
phone retails for US 150-200.
Rich in Royaltie from Digital TV
LG Electronics has signed license agreements with
Japans Mitsubishi and Sharp for its "vestigial
side band" (VSB) digital television reception
technology. LGE has aggressively promoted VSB
license agreements with digital TV manufacturers,
set-top box makers and broadcasting equipment
vendors since last years FCC mandate requiring
all companies to use the technology. LG
Electronics estimates licensing revenues will
reach some US100 million annually. In the U.S.
market,
the FCC will require all new digital TV sets
25-inches or larger to use the chip by June of
this year and all new sets must include it by
2007. Outside of the U.S., which accounts for 40
percent of the global digital TV market, Korea,
Canada, Mexico and Argentina have also decided to
adopt the VSB transmission system. LGE holds the
patent on the technology through its U.S.
subsidiary, Zenith Electronics.
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LGE WAY
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A New Attitude of Fast Execution Risk-Taking
To fully adopt Fast Execution, we must also adopt
a new attitude about risk-taking. We have to
accept the mindset that we cannot always know the
future but must still push ahead with bold, new
ideas. In the early 1960s, U.S. President John F.
Kennedy challenged NASA to fly a man to the moon
by the end of the 1960s. Nobody believed that the
U.S. space program, lagging far behind that of
the USSR, would be able to
accomplish this. Up to that point, the USSR had
achieved every notable first in space flight
first animal in space, first man in space, first
man to orbit
the earth, first woman in space, first space
walk, etc. But through bold risk-taking, the U.S.
did put the first man on the moon, on June 20,
1969. In the 21st century, we must also combine
our risk-taking with determination. Then, we will
gain continuous innovation to build lasting
product leadership. Next Week Lasting Product
Leadership .

LGE WAY Everyday
LGE WAY Everyday
Achieving Fast Growth Everyday
T
o achieve the Global Top 3 by 2010, LGE has
chosen a strategy for growth as
explained in the LGE WAY. Fast Growth is the
second half of that strategy. Fast Growth occurs
when we increase not only profits but also the
size of the market through premium
products. The DA company recently reiterated this
principle when it announced the release of the
Steam TROMM washing-machine. Customers
will pay a premium price to have a washing
machine that makes it unnecessary to iron
clothes. This not only means more profit per
machine sold, but also lures in new customer.
These new customers may still be using an old
top-loading washer, or they might be using a
TROMM, but they would not have purchased a new
washer until the Steam TROMM was introduced. But
they will buy a new Steam TROMM, thus increasing
the size
of the market. We must apply this principle in
all of the work we do everyday. When we choose
what goals to set or choose between two projects,
we must pick the one which will lead to premium
results. We must manage our time this way as
well, using the limited work time to focus on
those tasks which produce the greatest growth. If
we follow these ideas for Fast Growth we will
fuel our drive to the Global Top 3 by 2010.
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Published by LG Electronics / Corporate Culture
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