LG Elec to invest $185m in IT, telecom

BANGALORE: LG has announced that it would invest $185 m in India by 2005 in

areas like information technology, electronics and telecom. LG Electronics

global CEO and vice chairman John Koo expressed his satisfaction over the

performance of its Indian subsidiary, LG Electronics India and has ranked India

as one of the three top future investment destinations of the company along with

US and China.

He expects the company's other proposed ventures, software and telecom, to

also have the same growth. On the break-up of its proposed investments, Mr Koo

said that LG would invest $50 million in telecom, $100 million in electronics

and $35 million in software. For telecom, it is setting up a local venture LG

Information and Communication that will manufacture CDMA WLL technology

products, key telephone systems and GSM terminals. It would subsequently

integrate into the manufacturing of CDMA systems and phones, network products,

access network systems and ATM switching system.

Meanwhile LG has already tied up with Escorts Communication, where it has a

49 per cent stake, which would be taken over subsequently. The products would be

manufactured in its partner’s facility in Noida and LGIC head said Won Chul

Kim said, "It would act as the hub for the entire SAARC region." LG

also plans to capitalize on the huge e-commerce market in India through its

subsidiary LG Soft India. The company is also looking at the entire gamut of

convergence activities in the field of Internet. It will also look at

introducing its set top boxes in India, which is manufactured in its US joint

venture company.



It will also strengthen its digital business with investments of $10 m on
digital related product development. An investment of $10 m is also planned for

its PC monitor business.

Mr Koo also unveiled the company's pioneering technology based on which LGEIL

hopes to launch Internet microwaves and refrigerators. These will be intelligent

products, with the ability to respond to human touch with a touch screen mode.



The Internet refrigerator will also double up as a TV and will be able to
replenish fresh stock when required. The products would be commercially launched

all over the world by the end of ’00, Mr Koo said. Worldwide the company now

plans to focus only on convergence products (which include telecom, Internet,

software, electronics and media) and bio products, Mr Koo said.