LG Electronics is a renowned electronics multinational company which has its headquarters in Yeouldo-dong in Seoul. In the year 2014, the global sales records of this company reached $55.91 billion. The four major units of LG include mobile communications, vehicle components, air solutions, and refrigeration. For refrigeration & washing machines, its major production vendor is Starion India. This is the second-largest manufacturer of LCD TVs in the world. This company has around 128 operations in the world, including 83000 employees.
Inception
In the year 1958, this company was founded by Koo-In Hwoi, but the name of the company was Goldstar. After the Korean war, this company was established to rebuild the country with home production of electronics and appliances for the customers. This is the company which produced TVs, radios, washing machines, air conditioners and refrigerators in South Korea for the first time.
On 28th February, in 1995, Goldstar was merged with LS Cable and Lucky Chemical, and the name changed to Lucky-Goldstar. After this, the name was changed to LG Electronics. When the exports of the company started, it earned more than $100 million in the company’s history. Due to rapid growth, the company established its foreign production house in the United States in the year 1982.
In the year 1994, the company adopted the name LG ELECTRONICS officially, and it also became its corporate logo. In the year 1995, LG electronics bought Zenith and absorbed it in four years. The company made the first digital phone in the world, and those were supplied in the United States.
This was the time when the company also got the UL certification from the United States. In 1998, this company made the world’s first plasma TV of 60 inches. In the year 1999, LG electronics started a joint venture with the company, Philips. In the same year, this company got merged with Hynix. The company gained a lot of customers in these years and established its several branches in various foreign countries and South Korea.
Evolution
To create a better hold of the company’s revenue, the company got merged with LG CI in the year 2003. This was the time when Goldstar didn’t exist at all. In the global electronics consumer industry, this company plays a significant role. In the year 2005, the company became one of the top hundred global brands. In the year 2010, the company entered the smartphone industry and earned huge profits. LG also developed the first 84 inches of Ultra HD TV in the world.
On 5th December 2012, the regulators of EU fined LG and other companies like Thomson, Samsung, Philips, Toshiba, and Panasonic because they fixed the cost of cathode-ray tubes of television. In the year 2013, it was 2nd largest manufacturer of LCD TVs. On 11th June in the year 2015, LG electronics had to face human rights blame and controversy. It rose after Rosa Moreno (ex-employee of LG TV factory) wrote an article in THE GUARDIAN. The controversy faded away in a few days, and no one paid attention to it.
In the year 2016, the company’s branch in Germany and European headquarters were merged. In 2017, the company had to face some legal issues because it was sued for hardware failures with smartphones like LG G4. In the year 2018, Koo Bon-Joon was vice chairman and CEO of the company but got replaced by his nephew. On 20th May, in 2018, Koo Bon-Moo died of a brain tumor and then the position of CEO was given to his son, Koo Kwang-Mo. In the year 2017, the company announced that Hwang Jeong-hwan would take the job of president in LG MOBILE COMMUNICATIONS.
After one year, the was replaced by Brian Kwon, and he was head of the profitable home business of LG company. In the year 2018, the company decided to stop the production of the smartphone in South Korea and moved it to Vietnam. This was done so that the company can stay competitive. The company got abundant labor in Vietnam at lower prices, and that’s why the home plant was relocated to Vietnam. This decision of LG electronics proved to be good because the company started earning more profits after this decision.
Awards and achievements
In the year 2018, the LG steam care clothing system got ASTHMA and ALLERGY FRIENDLY CERTIFICATION. The company has been one of the most loved electronics companies in the world. The products of the company are one of the trusted options for the customers, and that’s why the company earns a lot of profits every year.
Net worth of LG Electronics in 2024
The net worth of LG Electronics is around $50 billion as of January 2024. The total equity of the company is about $14.461 billion as per 2018. More than 73000 people are working under the company. The company manufactures mobile phones, smartwatches, rolly keyboards, tablets, and home appliances. The company also sponsors other companies due to which the profits get multiplied faster. The total assets of the company amount to $1.306 billion in the year 2018. Zenith Electronics is the subsidiary of this company.
Till now, LG Electronics has used three marketing slogans. From the year 1997 till 1999, it used WE PUT PEOPLE FIRST as the slogan. In the year 1999, the slogan changed to DIGITALLY YOURS, and it remained till 2004. In the year 2004, the slogan of the company changed to LIFE’S GOOD.
Koo In-hwoi is the founder of the company, and Kwang-Mo Koo is the chairman. The CEO and vice chairman of the company are Jung Do-Hyun. The CTO and president of the company are I.P. Park. Other than one or two controversies, the company has always helped the customers at its best. Most of the customers of LG Electronics are highly satisfied with their services. The company will keep growing in the coming years due to its habit of producing high quality and fresh electronics from time to time.