LG Electronics constantly researches and introduces a full range of innovative, greener products

and services, and continue to be a leader in developing green innovations.

We are always looking for innovative ideas and technologies which will support our efforts as a
leading company in practicing environmental management.

1. Environment

1.1. Vision and Policy: - LG Electronics constantly researches and introduces a full range of
innovative, greener products and services, and continue to be a leader in developing green
innovations. LG Electronics will realize Global Top Company in the EESH area through
corporate level EESH management system operation, energy efficiency optimization,
business site safety & health, and employee health improvement activities. By providing
differentiated customer value, LG Electronics will pursue earth environment preservation,
sustainable social advancement, and improve the quality of life for stakeholders.

1.2. Operational Efficiency: - LG Electronics considers climate change response as critical

part of our business management. To this end, LG Electronics continuously works to
optimize and minimize our energy use by improving the efficiency of our facilities and
production processes. They are also expanding investments in high efficiency
equipment/facilities and solar power generating systems (Korea) and increasing our
purchase of renewable energy in office buildings in overseas. LG Electronics joined
"Green Power Partnership" led by U.S. EPA to reduce their environmental impact by
using renewable energy and "Smart Way" program reducing U.S. logistics-related
emissions in supply chain.
 1.3. Waste and Emission: -LG make ongoing efforts to increase recycling rates of waste
generated at their production sites by minimizing the amount of waste that is discharged,
increasing recyclability through separate disposal, and implementing environmentally friendly
treatment processes. LG Electronics’ waste recycling rates are increasing every year. We are
planning to raise the recycling rate of waste generated at our production sites by 90 percent
until 2020.

1.4. Greener Product: - LG Electronics has set a strategy to develop products that reduce

environmental impacts throughout the life cycle of the products. It is classified into three

categories: human, energy, and resources.

2. Strategy

2.1. BCG Matrix in the Marketing strategy of LG: - The reportable business segments
that the company operates into are Home entertainment, Mobile communications, Vehicle
components, Home appliance & air solution and Business to Business solutions.
Home appliances & Air solution and Home entertainment generated revenue of $ 17.3
billion and & $16.9 billion which is approximately 31% & 30% of the Total revenue. Other
businesses generate business of $ 10.5 billion (Mobile communications), $ 3.1 billion
(Vehicle Components) and $ 7.5 billion B2B solutions.

2.2. Distribution strategy in the Marketing strategy of LG: - LG group functioning in

electronics and appliances industry make its products available in the market through local
& national distributors such as Remington, Ingram Micro.
 LG has more than 222000 employees (Domestic: 137000 and Overseas: 85000) worldwide
out 0f which 83000 are dedicatedly working for LG electronics business. Such large
workforce is enabling the company in distributing the offerings through the network of
wholesalers, distributors, company own sales team in case of corporate sales, e-commerce
sites and authorized retail outlets.

2.3. Brand equity in the Marketing strategy of LG: - LG has been ranked 811th in the
list of Global 2000 companies (2017) and 65th in the Forbes magazine list of World’s most
powerful brand (2012). The Bank has Market Capitalization of $ 10.2 billion as of May
2017 with revenue of $47.72 billion.
Some of the awards and accolades won by the brand are European High-End TV 2016-
2017 “Best Product” at EISA Awards 2016, CES Innovation Awards 2017 – Honoree.

2.4. Customer analysis in the Marketing strategy of LG: - With its array of products for
both consumers as well as big corporations, company sere the market needs.
To retail consumers, it serves customers in the age group of 30-50 years in the Home
appliances and Home entertainment segment and is in middle/ upper middle-income group
while in the mobile communication it customers are in the age group of 15 years & above
serving customers from all income group through the mix of products.
To corporate, it provides tailor-made solutions to the MNCs, government institutions in the
business segment such as vehicle components, security systems, infotainment etc.

3. Design
4. Structural

LG Electronics is largely divided into 22 units. On the domestic side, there are four
business units, the marketing division, and seven functional divisions in the head office.
The overseas network consists of seven regional headquarters and three functional areas
(Support, R&D, design).
There are seven business sites (in Pyeongtaek, Cheongju, Changwon, and Gumi) under the
four business units. The overseas operations include 36 sales subsidiaries, 22 production
subsidiaries, eight product sales subsidiaries, five service subsidiaries, and branch offices.

5. Technology

5.1. OLED: - Discover LG's OLED technology of slim, light and future display. From
intense color and stunning contrast the innovative design, our OLED technology from LG
is sure to exceed your expectations for TV.

5.2. IPS: - Get ready for true-to-life colors, deep black levels and rich colors for amazing
contrast and color detail at virtually angle.

5.3. VIC: - Applying VIC technology to video wall, compensating color and brightness
difference in circuit part with algorism to create different displays look “Like One Plus".

5.4. LG C-Display Customer App: - Find latest production information along with
reference case, OLED/LED/video wall configurator, and manual and sales contact
information.
6. Culture

LG Electronics is striving to create a corporate culture based on creativity and autonomy.

While forming a work environment in which employees work hard and improve their
quality of life, it is also making an effort to elevate the standard of living for each individual
member.

6.1.Communication for Solving Problems: - LGE has been continuously making efforts to
create a corporate culture based on communication. The communication culture,
“Communication for Solving Problems” represents the process of 1:1 communication that
solves problems that may occur in the organization. Instead of a simple give and take way
of discussing intentions, this process allows an employee to communicate with top
management or leaders in a timely manner. Communication between individuals does not
end with just reporting of the problem, but each member views the problem from the
owner’s perspective and suggests a solution to the problem.

6.2. Participation Culture Based on the Voice of Employees (VOE): - This process
identifies employee perception about major company policies, and after establishment,
and then these views are reflected into those policies. Change Agent (CA) and Junior
Board (JB) played important roles in encouraging this employee participation culture to
become active. CAs are members that lead change in overseas organizations. JB is a
medium for employees in Korea that delivers employee opinions to the top management
and performs various roles for the rights of the employees. VOE is considered first in all
the improvement plans and is now a unique part of LGE’s corporate culture.

6.3. Efforts to Improve the Working Environment: - With the annual “LG Way Survey”, LGE
assesses its effectiveness in creating a positive work environment in which employees feel their
creativity and autonomy is promoted, and then implements improvements based on the results.
Employees are solicited to provide inputs describing a work environment and leadership style.
(Example: “I am given discretion to take an initiative based on my ideas and judgment when
working towards meeting the company’s goal”, “My boss allows and encourages me to make a
move that no one has tried or has never been tried in the past”, etc.).

7. Change Innovation

7.1. LG Signature: - LG Electronics (LG) will unveil an expanded LG SIGNATURE ultra-

premium product lineup at IFA 2018 in Berlin, highlighted by a new wine cellar, dryer
and bottom-freezer refrigerator.
The exclusive LG SIGNATURE wine cellar is capable of storing 65 bottles within its
sleek metal frame and features numerous innovative technologies such as Multi
Temperature Control which creates the ideal storage conditions for different types of wine.
The drawer refrigerator in the wine cellar with Automatic Lift allows for easy access to
the wine inside with the press of a button. Use voice recognition to open the door or turn
on the interior light to see what’s inside through the darkened glass, saving energy and
avoiding unnecessary exposure to sunlight.
A high-end clothes dryer will be joining LG SIGNATURE for the first time this year. The
10kg dryer can detect the amount of laundry inside the drum and adjust setting to match,
with no input from the user. A rapid drying feature is complemented by the advanced
Condenser Automatic Cleansing System which uses streaming water to clear away lint
build up, allowing the dryer to operate consistently at peak efficiency.
The new LG SIGNATURE bottom-freezer refrigerator boasts an array of advanced
features including Automatic Lift to raise the drawer to eye level for easier access to the
contents. The improved Auto Door Open feature senses when a person approaches and
automatically opens the door twice as wide as before, a real convenience when one’s arms
are full of groceries.
Visitors to LG’s booth in Hall 18 during IFA will be able to see the latest additions to the
LG SIGNATURE lineup for themselves.