LG Group Chairman Koo Bon-moo shakes hands with Chinese President 

Xi Jinping, who is touring the pavilion showcasing LG’s latest products and 

technologies at the Seoul Shilla Hotel on July 4. (photo: LG Group)

LG Group Chairman Koo Bon-moo guided Chinese President Xi Jinping on a tour of the pavilion showcasing LG’s latest products and technologies at the Seoul Shilla Hotel on July 4. 

Chairman Koo, wearing a red necktie mindful of Xi, welcomed the Chinese president with a big smile, and said, “I’m glad to see you again.” The two watched a video titled “LG, Realizing the Chinese Dream.”

President Xi said China will pursue closer cooperation with LG now that the Chinese market is further evolving. 

The pavilion, measuring 330.2 square meters –  wider than Samsung’s exhibition –  featured LG Electronics’ 77-inch curved OLED TV, its flagship smartphone, the G3, and mobile flexible displays, as well as EV batteries, new & renewable energy and eco-friendly products.

President Xi had a good look into the back of a 77-inch curved ultra-high definition (UHD) OLED TV, saying with surprise that it is too slim. While looking at the EV battery parts, Xi reportedly suggested cooperation with Chinese automakers. 

LG’s Business Activities in China

LG Business Group set foot in the Chinese market in October 1993, shortly after the establishment of diplomatic ties between China and Korea, when LG Electronics, a flagship company of the business group, set up a production company in Huizhou, Guangdong Province.

Six subsidiaries, including LG Electronics, LG Display, and LG Chem, currently operate a combined 34 production companies in China. The business group is expected to fare well in building business portfolios with a systematic and long-term perspective. 

In its early stage of market entry in the early 1990s, LG focused on building production centers. The business group has built up integrated business portfolios in the 2000s, LG Electronics set up an R&D center in Beijing and expanding its marketing compnay.

LG Electronics is infiltrating the Chinese market with the goal of becoming a global leader. The Korean electronics maker has been continuously expanding its business activities there since it set up a production company in Huizhou in 1993 and a marketing company in Beijing in 1995. LG Electr-onics is staging aggressive localization strategies to strengthen its presence in TV, smartphone, washing machine, refrigerator, and other home appliance markets to win Chinese hearts.

LG Electronics introduced the “Qwa-none” ultra-high definition TV set tailored to meet local tastes and demands, which has a standing-type image of a boat, a symbol of prosperity and peace, and the favorite color among the Chinese, gold, for enhancing luxury. LG Electronics’ company in Yantai is set to release its flagship smartphone, the G3, in July. 

LG Display will set up a G8 LCD panel plant in Guangzhou with mass production scheduled for the second half of 2014. The plant is a joint venture among LG Display, Guangzhou Development Complex, and Skyworth at a ratio of 70 percent, 20 percent, and 10 percent. 

LG Innotek has production operations in Yantai, Huizhou Province, and other areas to make inroads into global materials and parts markets. A locally incorporated company, established by LG Innotek in 2004, produces TV and mobile parts, including power modules and camera modules. The company has grown into the largest overseas production center established by LG Innotek.