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| Business Scope |
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| Area |
Research, development
and production of mobile communication system,
switching system, transmitting equipment, network equipment. |
| Location |
Korea |
| Cheongju |
Gasan |
| Anyang |
Gumi |
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| Overseas |
| LGSYS (Noida, India) |
LG-TOPS (Guangzhou, China)
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| VKX (Hanci, Vietnam). |
EMGS (Bucharest, Romania) |
| SLD (Kepel, Singapore)
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| Performance
Overview |
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| Review |
In 2002, most wired and wireless communications equipment
makers experienced drastic downturns in their sales and
bottom line, primarily as a result of the continued stagnation
of the global communications infrastructure industry. LGE
was no exception to this difficult operating environment, with
its telecommunication systems revenue slumping by 39.5% in 2002
year on year to 904 billion won.
To cope with such a negative business environment, the Division
implemented a set of extensive measures for compre
hensive business rationalization and restructuring. These efforts
were focused on the winding up of various business
lines that were deemed less competitive and held little potential
for strong profitability growth.
On the other hand, there have been positive developments as
well. In the 3G sector, we began to reap benefits of
investment. For example, LGE earned the right to supply IMT-2000
systems for WCDMA service to KTiCOM and SKIMT.
In the wired sector, LGE was selected as a co-developer of softswitch,
a key component of next-generation network
ing, by KT (formerly Korea Telecom). Moreover, we managed to
solidify its No. 1 market position in the Key-phone and
PBX(Private Branch eXchange) sectors. |
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| Outlook |
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Lucrative business
opportunities are projected to evolve from commencement
of development of 3G mobile service infrastructure and
new investment in high-speed data services. In this regard,
Telecommunication System Division will implement a set
of initiatives in the new year.
For example, we will focus on fortifying the mobile telecommunication
business base. On the domestic front, we will seek to
expand its market share through early stabilization of
its commercial systems for WCDMA service and to expand
sales in the CDMA sector, in which business is already
normalized. In foreign markets, priority will be placed
on the pursuit of profitable projects along with the steady
development of cost-efficient products and components
that will help to enhance the overall competitiveness
of our systems. |
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