SKorea's LG Group to invest US$25b by 2010

SKorea's LG Group to invest US$25b by 2010

Agence France-Presse Seoul

South Korea's LG Group on Wednesday announced a US$25 billion investment plan to turn the conglomerate into a global leader in mobile phones and flat screens in six years.

LG Group said it would pour 30 trillion won ($25.3 billion) into research and development in its electronics and telecoms operations by 2010, aiming to grow into one of the world's top three electronics giants.

It said its investment will focus on its core businesses of mobile phone handsets, digital televisions and displays.

"More than 60 percent of the budget will be spent for supporting such businesses as handsets, digital televisions and flat display screens," LG said in a statement.

It said it would invest 2.3 trillion won in research for electronics operations this year, up 21 percent from 2003. The annual investment would rise to four trillion won in 2007 and six trillion won in 2010, it said.

LG Group said it will more than double the number of electronics sector research staff to 30,000 by 2010 from the current 14,000.

LG Electronics Inc., the group's flagship, is the world's third-largest maker of plasma display panels (PDPs) for large- size flat television screens and the world's fifth-biggest handset marker.

LG.Philips LCD, a 50-50 joint venture between LG Electronics and Philips Electronics NV, is the world's second-largest maker of liquid crystal displays (LCDs) for computer and television screens.

LG Electronics also produces mobile phone handselts and other home appliances such as televisions and refrigerators.