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.