LG

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This article is part of the Center for Media & Democracy's spotlight on global corporations.

LG Group is a large South Korean conglomerate (chaebol), that produces electronics, mobile phones, and petrochemical products and operates subsidiaries like LG Electronics, LG Telecom, Zenith Electronics and LG Chem in over 80 countries. LG Group sponsors the LG Cup Go Tournament.

Created as an appliance company in 1947 named GoldStar, it later merged with the chemical company Lucky. Many consumer electronics were sold under the brand name GoldStar, while some other household products (not available outside South Korea) were sold under the brand name of Lucky. The Lucky brand was famous for its hygiene products line such as soaps and Hi-Ti laundry detergents, but most associated with its Lucky and Perioe toothpaste.

In 1995, it was renamed "LG", the abbreviation of "Lucky GoldStar". More recently, the company associates its tagline "Life's Good", with the letters LG.

Company History

LG Electronics was established in 1958 and has since led the way into the advanced digital era thanks to the technological expertise acquired by manufacturing many home appliances such as radios and TVs. LG Electronics has unveiled many new products, applied new technologies in the form of mobile devices and digital TVs in the 21st century and continues to reinforce its status as a global company

1958

   Founded as GoldStar

1960's

   Produces Korea's first radios, TVs, refrigerators,
   washing machines, and air conditioners

1995

   Renamed LG Electronics
   Acquires US-based Zenith

1997

   World's first CDMA digital mobile handsets supplied to Ameritech and GTE in U.S. Achieves UL certification in U.S.
   Develops world's first IC set for DTV 

1998

   Develops world's first 60-inch plasma TV 

1999

   Establishes LG Philips LCD, a joint venture with
   Philips

2000

   Launches world's first Internet refrigerator
   Exports synchronous IMT-2000 to Marconi
   Wireless of Italy
   Significant exports to Verizon Wireless in U.S.

2001

   GSM mobile handset Exports to Russia, Italy, and
   Indonesia
   Establishes market leadership in Australian
   CDMA market
   Launches world's first Internet washing machine, air conditioner, and microwave oven 

2002

   Under LG Holding Company system, separates
   into LG Electronics and LG Corporation
   Full-scale export of GPRS color mobile phones to
   Europe
   Establishes CDMA handset production line and
   R&D center in China

2003

   Enters Northern European and Middle East GSM
   handset market
   Achieves monthly export volume above 2.5
   million units (July)
   Top global CDMA producer

2004

   EVSB, the next-generation DTV transmission
   technology, chosen to be the U.S./Canada
   Industry standard by the US ATSC
   Commercializes world's first 55" all-in-one
   LCD TV
   Commercializes world's first 71" plasma TV 
   Develops world's first Satellite- and Terrestrial-DMB handsets 

2005

   Becomes fourth-largest supplier of the mobile
   handsets market worldwide
   Develops world's first 3G UMTS DMB handset, 3G-based DVB-Hand Media FLO 
   DMB Phone with time-shift function and DMB
   notebook computer
   Establishes LG-Nortel, a network solution joint
   venture with Nortel 

2006

   LG Chocolate, the first model in LG's Black Label
   series of premium handsets, sells 7.5 million units
   worldwide
   Develops the first single-scan 60" HD PDP module and 100-inch LCD TV
   Establishes strategic partnership with UL
   Acquires the world's first IPv6 Gold Ready logo

2007

   Launches the industry's first dual-format,
   high-definition disc player and drive
   Launches 120Hz Full HD LCD TV
   Demonstrated the world-first MIMO 4G-Enabled technologies with 3G LTE
   Won contract for GSMA's 3G campaign

2008

   Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives."

[1]


Corporate Accountability

Labor

LG is one of the major purchasers of electronics produced at the Lite-On Computer Technology production facility in Shijie Town, Dongguan Province, China (founded 1997).[2] By early 2008, the facility employed about 5000 people who enter the company by paying agencies based in Shijie town, Dongguan, 500-600 yuan (for men) or 200 yuan (for women). [3] While Lite-On production schedules follow a normal 8-hour workday, breaks consist of only 10 minutes twice a day and are unpaid – further, overtime work in the evenings, on weekends, and especially during busy seasons, is mandatory and can reach up to 100 hours a month, in violation of both Chinese Labor Law and the [EICC] standard. [4] Basic wages at Lite-On complied with Chinese minimum wage laws (690 yuan/month in 2007), but until mid-to-late 2007 when overtime began being paid at twice the standard weekend rate (8.24 yuan/hour) the company violated overtime wage laws by paying over 2 yuan less per hour. [5] A fire in the factory in February of 2008 has caused workers to be extremely concerned about their safety, and as of May 2008 production had not yet fully resumed at full capacity due to the damage the fire had caused. [6] Workers are charged up to one quarter of their wages on food, electricity, and water for eating and living in the factory dormitories, which house up to 16 people per room. [7] Research conducted by [SACOM] and [Bread for All] in early 2008 concluded that workers at Lite-On were unaware of their rights under either [EICC] standards or any of the codes of conduct of Lite-On’s customers, including LG.[8]


Human Rights

A 2008 study demonstrated that LG, as well as several other major manufacturers of mobile phones, including Nokia, Samsung, and Motorola use cobalt mined in the Democratic Republic of Congo for the production of their mobile phones, thereby running the risk of supporting unfair labor practices in the mines and serious related human rights abuses.[9] Despite the companies former claims that they could not trace the origins of cobalt and other minerals used in the production of their mobile handsets, the report demonstrates that supply chains are identifiable and notes that despite this information, none of the mobile phone companies have taken action to insure that their cobalt suppliers comply with their Corporate Social Responsibility initiatives.[10]

Environment

Consumer Protection and Product Safety

Anti-Trust and Tax Practices

Social Responsibility Initiatives

Business Scope

Lines of Business and Major Products Paragraph Units/Subsidiaries


Customers Suppliers Creditors Competitors
Customer 1 Supplier 1 Creditor 1 Competitor 1
Customer 2 Supplier 2 Creditor 2 Competitor 2
Customer 3 Supplier 3 Creditor 3 Competitor 3
Customer 4 Supplier 4 Creditor 4 Competitor 4


Financial Information (as of DATE)

Ticker Symbol:
Main Exchanges:
Investor Website:

Shareholder % Total Shares held
Shareholder 1 % Held 1
Shareholder 2 % Held 2
Shareholder 3 % Held 3
Shareholder 4 % Held 4

Largest Shareholders

Geographic scope paragraph

Country Revenue Profits Assets Employees
Country 1 Revenue 1 Profit 1 Assets 1 Employees 1
Country 2 Revenue 2 Profit 2 Assets 2 Employees 2
Country 3 Revenue 3 Profit 3 Assets 3 Employees 3
Country 4 Revenue 4 Profit 4 Assets 4 Employees 4

Governance

Executives Yong Nam Vice Chairman and CEO, LG Electronics

  Young-Ha Lee
   President and CEO / Digital Appliance Company
   .


Simon Kang

   Simon Kang
   President and CEO / Digital Display Company 
   

B.B Hwang

   B.B Hwang
   President and CEO / Digital Media Company 
   


Skott Ahn

   Skott Ahn
   President and CEO / Mobile Communications Company 
   

Regional Company


Seog Won Park

   Seog Won Park
   President and CEO / Korea 
   


Michael Ahn

   Michael Ahn
   President and CEO / North America
   

James Kim

   James Kim
   President and CEO / Europe
   


Nam K. Woo

   Nam K. Woo
   President and CEO / China
   

Young Woo Nam

   Young Woo Nam 
   President and CEO / Asia
   


Kyung Hoon Byun

   Kyung Hoon Byun 
   President and CEO / South & Central America
   .

Ki Wan Kim

   Ki Wan Kim 
   President and CEO / Middle East & Africa

Young Chan Kim

   Young Chan Kim 
   President and CEO / CIS


Staff

Woo Hyun Paik

   Woo Hyun Paik
   President / Chief Technology Officer 


David Dohyun Jung

   David Jung
   Executive Vice President / Chief Financial Officer 
   

Dermot JM Boden

   Dermot J M. Boden 
   Executive Vice President / Chief Marketing Officer 
   

Reginald J. Bull

   Reginald J. Bull
   Executive Vice President / Chief Human Resources Officer
 

Tom Linton

   Thomas K. Linton
   Executive Vice President / Chief Procurement Officer 

Didier Chenneveau

   Didier Chenneveau
   Executive Vice President / Chief Supply Chain Officer
   

James N. Shad

   James N. Shad
   Executive Vice President / Chief Go-to-Market Office

Contact Information

   Address:
   LG Twin Towers, 20 Yeouido-dong,
   Yeongdeungpo-gu, Seoul 150-721, KOREA
   Tel: +82 (0)2 3777 1114
   URL: http://www.lge.com

Articles and Resources

Books on the Company

Related SourceWatch Articles

Sources

  1. http://www.lge.com/about/corporate/history.jsp
  2. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 10.
  3. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 27.
  4. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  5. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  6. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  7. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  8. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  9. DanWatch. May 2008. "Bad Connections: How your mobile phone is linked to abuse, fraud, and unfair mining practices in DR Congo."
  10. DanWatch. May 2008. "Bad Connections: How your mobile phone is linked to abuse, fraud, and unfair mining practices in DR Congo." p. 4.

External Resources

External Articles