South Korea-based LG Group plans total investment of 9.4 trillion won (approx. U.S. $7.96 billion) this year, up 31 percent from 2003, including 6.8 trillion won for capital expenditure and 2.6 trillion won for research and development, 24 percent more than 2003.
South Korea's second-largest conglomerate is also targeting 95 trillion won (approx. $80.4 billion) in revenue in 2004, according to a statement released by the business group.
Out of total capex, LG will funnel 5.1 trillion won into "high-growth and high value added" electronics and telecommunications sector, while 1.2 trillion won will be invested in the petrochemical and energy sector and another 500 billion won will be spent on construction, retail, and service operations.
In R&D, it will spend 2.3 trillion won for R&D in electronics and telecommunications, up 21 percent on-year, of which 1.6 trillion won will go to digital television, plasma display panels, next-generation devices, and bio- technology. Another 300 billion won will be invested in petrochemicals and energy, up 15 percent on-year.
As a part of its effort to boost revenue by 12 percent from 2003, LG Group is targeting exports worth $35 billion this year, up 15 percent on-year while it aims to raise ordinary profits by 42 percent on-year to 4.4 trillion won.
Its overseas strategy will center on boosting brand awareness, particularly in the North American market, and expanding exports of high-value added products to Europe, China, and India.
LG has allocated $300 million for the next 2 years to finance its marketing campaign to ensure that LG becomes a "Top 3" brand in electronics and telecom by 2005 in North America.
Furthermore, the conglomerate plans to secure the fourth largest market share of the global mobile phone market by "concentrating all its resources and energy" to this end.
It also outlined an aggressive business plan for China which it believes will be the biggest growing market in the 21st century.
To secure a strong foothold in the country, LG plans to establish a regional headquarters in China to oversee its local manufacturing facilities and marketing efforts. (Dow Jones)
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